[Coupang Changed the Distribution Map] Creating My Own Competitive Edge in E-Commerce

④E-commerce Finding Its Own Color

Naver, 5% Points Accumulation for Membership
11st, Increasing Exclusive Products
Gmarket, Providing Personalized Products with AI

The e-commerce industry is in the midst of experiments to find its own unique identity. After Coupang's dominance was solidified, companies have begun seeking answers to why consumers should choose them to purchase products.

According to the industry on the 14th, e-commerce companies are building differentiated strategies that incorporate their own 'identity.' While Coupang's 'Rocket Delivery,' which delivers goods by 7 a.m. the next day if ordered before midnight, has become a trend and a competitive edge, other companies are contemplating where to place their value to stand out in this market. Most e-commerce companies already operate services similar to Coupang's signature Rocket Delivery and membership system (Wow Membership). However, the common industry consensus is that expecting further growth in these service areas, where Coupang has secured an advantage through its logistics network built with aggressive investment and accumulated customer data, is unrealistic.

Within the industry, Naver is considered the company with a 'complete' differentiated strategy that can rival Coupang. Naver has attracted consumers with a differentiated strategy of offering up to 5% cashback on payment amounts for membership subscribers. As of last year, Naver holds the second-largest membership base with 8 million members, following Coupang's 11 million. However, there is a significant gap in sales scale. As of the second quarter of this year, Coupang's sales reached 7.6749 trillion KRW, whereas Naver's commerce sales amounted to only 632.9 billion KRW. Recently, Naver established a membership-exclusive section and began offering services such as special price runs and lowest price guarantees, which analysts believe were influenced by this gap.

While Coupang has solidified its market image through delivery and Naver through points, 11st is driving its strategy with 'uniqueness.' Since last month, 11st has been operating the 'Original Seller Program,' which exempts certain sales commissions up to a specific sales amount for sellers offering unique products. An original seller refers to sellers who own self-produced products or private brands.

Gmarket has placed its bet on IT. To this end, it reportedly hired over 100 developers last year. In May, it introduced an AI-based personalized service on the front page of its mobile application, which is seen as a result of this effort. Based on this AI algorithm, Gmarket analyzes products recently purchased or viewed by consumers to provide customized product recommendations. Since the mobile homepage is configured based on individual consumer behavior patterns, the displayed screens differ for each user, according to the company.

Shinsegae's online mall, SSG.com, is expanding its connections with group affiliates. Alongside joint promotions with Emart and Gmarket, it is strengthening marketing activities to secure members for the group membership program 'Shinsegae Universe Club,' launched in June.

Kurly has introduced product curation as its differentiation strategy. The number of products sold on Market Kurly is known to be about 30,000 to 40,000, which is only 1/200th of Coupang's offerings. A Kurly representative stated, "Our selection criteria are known to be the most stringent in the industry," adding, "Kurly's principle is to choose only products that ensure above-average satisfaction regardless of the consumer's choice."