C-Commerce Opponent Coupang Steps Up to 'Protect Prices'... "Daily Necessities on Average 56% Cheaper"

Offline Prices at 3 Major Marts 26% Higher Than Coupang
Grocery Prices 20% Cheaper on Coupang
Expanding Delivery Network and Enhancing Price Competitiveness to Compete with C-Commerce
"Will Contribute to Price Stabilization"

A survey found that the prices of major groceries and daily necessities sold on Coupang are lower than those at major distribution retailers such as large supermarkets. Coupang plans to further strengthen the price competitiveness of high-quality products in response to C-commerce (Chinese e-commerce) to increase consumer benefits.

According to Coupang on the 8th, market research firm Ipsos analyzed the prices of 79 products across 49 items including processed foods, fresh foods, and daily necessities sold on Coupang and three major domestic large supermarkets. The analysis showed that the offline average price at the three supermarkets was 26% higher than Coupang’s average selling price.

Average Price Comparison Between Coupang and Three Major Supermarkets.
[Image Provided by Coupang]

The survey was conducted over two days from the 27th to the 28th of last month. The items surveyed were selected mainly from popular brand products, and for some products without the same weight, prices were compared based on weight. Coupang’s prices were analyzed based on Wow membership prices, while supermarket prices reflected discounts or membership prices applied during the same period. Among the 49 items, 39 (67 products) were groceries, and 10 (12 products) were daily necessities. Of the total 49 items, 39 are included in the Consumer Price Index compiled by Statistics Korea.

In particular, the average price of daily necessities such as shampoo, kitchen detergent, razors, toothpaste, and batteries was found to be 56% higher at supermarkets. For example, the price of Head & Shoulders Cool Menthol (850ml) shampoo on Coupang was 9,090 KRW, while the supermarket price was 16,900 KRW, which is 86% higher.

Major groceries and fresh foods were also found to be cheaper on Coupang. The average price of 39 major grocery items on Coupang was 20% lower than supermarkets, with the largest price gaps seen in seasonings such as sugar, soy sauce, and red pepper paste. Notably, the price of Cheongjeongwon red pepper paste (500g, 1 unit) on Coupang was 5,630 KRW, less than half the supermarket price.

In the sugar category, which saw a 20% price increase last month compared to the same month last year, Altist’s 'Stevia Instead of Sugar' (400g, 4,800 KRW) was priced 66% higher at supermarkets. Jongga Mat Kimchi (1.2kg) was 48% cheaper on Coupang than at supermarkets, and Ottogi instant rice (210g, 12-pack) was sold on Coupang for 9,500 KRW, 31% lower than the supermarket average. Other major groceries such as canned tuna (Dongwon, Sajo), bread (Samlip), sesame oil (Ottogi), processed ham (Lotte), and fresh foods like cucumbers, mushrooms, and green chili peppers also showed strong price competitiveness. Some items like Nongshim ramen, snacks, dairy products, and tofu had similar or identical prices between Coupang and supermarkets.

Expansion of Delivery Network and Enhancement of Price Competitiveness... "We Will Compete Against C-Commerce"

Coupang to Invest Over 3 Trillion Won in Logistics Infrastructure Expansion Over Three Years.
[Image Provided by Coupang]

Earlier, Coupang announced plans to expand its logistics and delivery network in response to the entry of C-commerce into the domestic market. Specifically, it will invest more than 3 trillion KRW over the next three years to operate new fulfillment centers (FCs) in more than eight regions. Through this, Coupang aims to expand free Rocket Delivery areas to cover over 50 million people nationwide by 2027. Coupang plans to continue increasing investments related to logistics.

Recently, Coupang has frequently held discount events to reduce customer burdens amid high inflation. Fruit prices, which have risen significantly compared to last year, are a representative example. Last month, Coupang purchased about 1,350 tons of fruits such as tomatoes, apples, and oriental melons in two rounds, using its own budget to expand discount sales. Imperfect apples were sold for under 10,000 KRW for 1.5kg with discount coupons applied. Exclusive discount corners for Wow members such as 'Gold Box,' 'Time Sale,' and '99 Special Price' are also operated.

A Coupang official said, "Coupang has invested trillions of won in logistics infrastructure, automation, and customer service over the past decades to provide customers with verified products at reasonable prices. Facing the unprecedented threat of Chinese commerce aggression, we will do our best to contribute to price stabilization by enabling customers nationwide to purchase the products they need most cheaply and quickly."