Clothing Also 'Dawn Delivery'... Coupang Launches 'Rocket Fashion'

Coupang Expands Fashion Private Brand

Fashion MDs from Large Corporations Become Highly Sought After

[Asia Economy Reporter Lim Hye-sun] Following industrial goods and fresh food, the era of dawn delivery for clothing is opening. Consumers are expected to respond enthusiastically as they can receive clothes purchased online in the afternoon by dawn and wear them the next morning.

According to the distribution industry on the 20th, Coupang will launch 'Rocket Fashion' next month, allowing customers to receive clothes the next day if purchased before midnight. Coupang has set a plan to expand its relatively weak fashion business this year. They aim to increase new customers in the fashion sector through dawn delivery and expand the business by launching private brands (PB). Coupang currently sells limited items such as socks and underwear through its PB brand 'Base Alpha,' but its presence in the fashion market has not been significant so far. To support this business, Coupang has aggressively recruited fashion merchandisers (MDs). They plan to hire 30 to 40 people with over eight years of experience in the fashion industry to handle tasks from sourcing for private brands to selecting vendors and launching brands. Previously, the company conducted marketing to promote product categories and also hired fashion category managers (CM) to efficiently connect and manage sellers and buyers.

A fashion industry insider said, "Coupang is aggressively recruiting fashion MDs. Although it is not as stable a workplace as large corporations, it is understood that people are moving there mainly to enhance their value through experience in the new online arena." He added, "Coupang's PB products will initially focus on basic items such as T-shirts, pants, dress shirts, and neckties."

It is understood that Coupang aims to nurture its marketplace store by increasing customers and sellers through the expansion of its fashion business. Developing PB brands was chosen as an incentive strategy to boost customer loyalty. By attracting loyal customers with PB products that cannot be purchased from other retailers, they can also reduce distribution costs. Internet shopping mall Gmarket is a successful example of differentiating the fashion category. In fact, last year, fashion products accounted for about 20% of total online shopping mall transaction volume. Fashion has a high average transaction value and profit margin, making it efficient for increasing sales volume and profitability.

Additionally, there is analysis that this is a preparatory stage for logistics service fulfillment (a system responsible for the entire process from order to delivery). Fulfillment means that if sellers store their inventory at a logistics center, the center then operates logistics, delivery, returns, and customer service (CS) on their behalf and charges a certain fee. A distribution industry insider explained, "To enter the fulfillment market stably, Coupang needs to secure sellers and customers," adding, "They will dominate the online market not only through the fashion business but also through various PB products and services."