Coupang to Raise Wow Membership Monthly Fee Starting Next Month
SSG.com Lowers Annual Fee from 30,000 to 10,000 Won for One Week
Gmarket Also Expands Discount Coupon Benefits
With the monthly fee increase for Coupang's paid membership, Wow Membership, just a month away, the e-commerce industry is significantly enhancing the benefits of their paid memberships. This move is interpreted as an effort to attract so-called '탈쿠팡족' (TalCoupang-jok), customers leaving Coupang, as the application of the increased Wow Membership fee becomes imminent.
According to the distribution industry on the 1st, SSG.com is running the 'Shinsegae Universe Club Week' with enhanced membership benefits until the 7th of this month. During this period, the annual fee for the paid membership 'Universe Club,' which was previously 30,000 KRW, is reduced to 10,000 KRW. New customers can use the membership at a 65% discounted price for one year, and additionally, they receive 10,000 KRW in SSG Money.
Moreover, a 10,000 KRW discount coupon usable on purchases over 20,000 KRW and four free delivery coupons for SSG Delivery's 'Anytime on This Day' shopping are also provided. In addition, benefits of the Shinsegae Universe Club such as ▲up to 8 coupons with a maximum 10% discount ▲cashback on department store product return fees ▲exclusive discount deals are also offered as usual.
This is the second time SSG.com has lowered the fee for its paid membership. Earlier, at the beginning of April, SSG.com reduced the annual fee to 15,000 KRW, half the original price, during the 'Landers Day' event. In May, they also offered up to three months of free Shinsegae Universe Club membership to newly registered members.
Another Shinsegae e-commerce affiliate, Gmarket, has also strengthened the discount coupons provided monthly to paid membership members. Starting from the 1st of this month, Gmarket offers a new '15% coupon' that allows Shinsegae Universe Club members to receive discounts up to 5,000 KRW. This is an upgrade from the previous 12% coupon, and the minimum purchase amount condition of 15,000 KRW for coupon use has been removed. Additionally, 10% and 5% discount coupons are also provided. According to Gmarket, if members use all four types of coupons provided monthly to the fullest, they can receive discounts totaling 44,000 KRW per month.
Previously, in May, Gmarket and Auction temporarily reduced the annual fee for new members joining the Shinsegae Universe Club to 4,900 KRW for one month. This price is 84% cheaper than the original 30,000 KRW fee. At that time, Gmarket explained that the event was held ahead of the year's biggest discount event, 'Big Smile Day.' However, considering that Coupang announced the Wow Membership fee increase in April, it is also interpreted as an attempt to capture customers intending to leave Coupang.
Some companies are offering new services targeting the benefits of Wow Membership. Naver, through a partnership with the delivery app Yogiyo, started providing the 'YogipassX' benefit to 'Naver Plus Membership' members from the 26th of last month. YogipassX is Yogiyo's membership service that offers unlimited free delivery benefits when ordering above a minimum amount at eligible stores. Through this partnership, Naver Plus Membership subscribers can link their Naver and Yogiyo accounts and receive the 'YogipassX' benefits without additional costs.
This free delivery benefit provided by Naver through Yogiyo is similar to Coupang offering free delivery benefits via 'Coupang Eats' to Wow Membership members. This aligns the interests of Yogiyo, which fell to third place in the delivery app market due to Coupang Eats' free delivery offensive, and Naver, which aims to strengthen membership benefits. Earlier, Naver started offering a three-month free trial for Naver Plus Membership from April, right after Coupang announced the monthly fee increase. The 'Guaranteed Arrival Free Delivery' service for same-day and weekend delivery also began during this period.
Early morning delivery company Kurly also began providing 31 free delivery coupons monthly to paid members of 'Kurly Members' starting from the 27th of last month. These coupons can be used on purchases over 20,000 KRW, effectively offering free delivery almost daily to customers who shop in small quantities frequently, according to Kurly. Kurly also provided a three-month free membership and three free delivery coupons to first-time Kurly Members subscribers for one month starting April 18.
Earlier, in April, Coupang announced it would increase the Wow Membership fee from 4,990 KRW to 7,890 KRW, a rise of about 58%. The increased fee was applied to new members from April 13, and existing members will see the increased fee applied from their monthly payment date next month. The Wow Membership fee is charged monthly on the date corresponding to the initial subscription date.
The e-commerce industry's enhancement of membership benefits targeting Coupang has led to a short-term increase in membership numbers. Gmarket reported that the number of members joining the Shinsegae Universe Club through Gmarket during the Big Smile Day period in May increased about fourfold (301%) compared to the previous month. Kurly also saw a 20% increase in Kurly Members subscribers in May, when the three-month free benefit was implemented, compared to March.
However, the effect of this e-commerce industry's effort to attract the '탈쿠팡족' is still uncertain. Coupang is experiencing a lock-in effect by retaining customers through differentiated services such as Rocket Delivery and the online video service (OTT) 'Coupang Play.' Jung Yeonseung, Dean (Professor) of Dankook University Graduate School of Business, said, "Wow Membership members are already loyal customers, so it will not be easy for them to leave Coupang," adding, "(After the membership price increase) customers who cancel are not loyal customers, so the impact on Coupang will not be significant."
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