Coupang Returns Offline... What They Targeted

Expanding Online Market Share
Strengthening the Vulnerable Beauty Business

Coupang has opened the ‘Mega Beauty Show Awards Virtual Store’ at eight Megabox locations nationwide. This is the second time it has appeared offline, following the event in August. It is interpreted as a determination to strengthen its beauty business while expanding its online market share through communication with consumers.

Coupang has opened the "Mega Beauty Show Awards Virtual Store" at eight Megabox locations nationwide. This is the second event following the one held last August. The event will take place for one month at eight Megabox branches across the country: Megabox COEX, Gangnam, Hongdae, Hanam Starfield, Daejeon Shinsegae, Daegu Shinsegae, Busan National University, and Chonnam National University (Gwangju).
[Photo by Coupang]

According to the industry on the 2nd, Coupang has been operating the Mega Beauty Show Awards Virtual Store at eight Megabox locations nationwide, including Gangnam, Seoul, since the day before. The virtual store is an offline beauty experience center hosted by Coupang that involves consumer participation, and it was held once in August at ‘Ssenne’ in Seongsu-dong, Seoul. This event features eight brands including Dalba and Tony Moly, showcasing various products until the 30th of this month.

While the previous virtual store was limited to Seoul, this time it is evenly held across regions including three locations in Seoul, and one each in Gyeonggi, Daejeon, Daegu, Busan, and Gwangju. The event period has also been significantly extended from three days to one month. Coupang stated, "The virtual store held in Seongsu-dong last August received a lot of love from customers," and added, "We expect to meet more customers at the eight locations nationwide this time."

This virtual store contains a strategic intention to expand consumer touchpoints by linking online and offline. It aims to satisfy needs that cannot be fulfilled by online shopping by creating an experiential space. It also seeks to expand online market share through this. Consumers visiting the virtual store can experience products and, if they like them, access the Coupang app via an on-site QR code to make a purchase.

Coupang has opened the "Mega Beauty Show Awards Virtual Store" at eight Megabox locations nationwide. This is the second event following the one held last August. The event will take place for one month at eight Megabox branches across the country: Megabox COEX, Gangnam, Hongdae, Hanam Starfield, Daejeon Shinsegae, Daegu Shinsegae, Busan National University, and Jeonnam National University (Gwangju).
[Photo by Coupang]

The virtual store is also interpreted as Coupang’s determination to strengthen its beauty business. Recently, Coupang has been putting considerable effort into the beauty sector, including launching ‘Rocket Luxury’ this year. While it has become a giant in the e-commerce industry mainly through daily necessities sales, it envisions securing the true throne of the online distribution market by reinforcing the beauty sector. According to global market research firm Euromonitor, Coupang’s market share in the domestic distribution market last year was 9.8%, ranking second after the Shinsegae Group (13.4%).

An e-commerce industry insider said, "Since Coupang has grown mainly around daily necessities, it has been weak in the beauty and fashion sectors," adding, "It seems that they will use the growth in the beauty sector as a stepping stone to expand into fashion in the future, broadly developing ‘Rocket Luxury’." Another insider forecasted, "As the growth of the e-commerce market gradually slows down, companies are viewing the beauty sector as a new growth engine," and added, "Who dominates this market and how they do it could change the industry landscape."