Gmarket, SKT T Woosoo Partnership Subscription Product Launch Planned
Expanding Reach Based on 2.6 Million Subscribers
Free Shipping Coupons for New Subscribers
SSG.com Also Lowers Membership Prices
The e-commerce industry is strengthening the benefits of paid memberships or launching new subscription products. This move is interpreted as an effort to retain so-called '탈쿠팡족' customers who leave the service after Coupang's paid membership, Wow Membership, raised its fees starting this month.
According to the distribution industry on the 26th, Gmarket, an e-commerce platform affiliated with Shinsegae Group, plans to launch a new type of service early next month by partnering with SK Telecom to add shopping benefits from the 'Shinsegae Universe Club' to T Woju.
T Woju and Shinsegae Universe Club are membership services of SK Telecom and Shinsegae Group, respectively. Shinsegae Universe Club is an integrated membership that offers benefits from six Shinsegae Group companies. When joining through channels such as Gmarket, E-Mart, SSG.com, Shinsegae Department Store, Starbucks, and Shinsegae Duty Free, members receive cash-equivalent rewards and discount benefits usable within the joined channel. T Woju is a monthly paid subscription service provided by SK Telecom, offering benefits to subscribers through partnerships with various companies in online video services (OTT), dining, cafes, convenience stores, and IT services.
Judging from T Woju's subscription product format, the new service is expected to operate by providing additional benefits from T Woju based on the benefits of the Shinsegae Universe Club. Both companies plan to disclose detailed benefit information and subscription fees (monthly fees) for the T Woju Shinsegae Universe Club product on the launch day. However, subscribers through T Woju will receive all benefits from the six Shinsegae Group companies, both online and offline, just like existing Shinsegae Universe Club members.
Gmarket's partnership with SK Telecom is interpreted as a way to accelerate user growth based on T Woju's subscriber base. As of the end of the second quarter, T Woju's paid subscription product had 2.7 million subscribers. Additionally, SK Telecom offers some T Woju products free of charge to customers subscribed to its high-priced plans. Another advantage is that the Shinsegae Universe Club, which is basically an annual membership, can be used in a monthly fee format when subscribing through T Woju.
Earlier, Gmarket announced that it would support benefits of up to 60,000 KRW in shipping fees for customers newly joining the Shinsegae Universe Club until September. This applies to all products except international shipping and food delivery, with up to 30,000 KRW available each on Gmarket and Auction. Since the usual shipping fee is about 3,000 KRW, this support covers approximately 20 shipments. Additionally, the annual fee for new subscribers is lowered to 4,900 KRW, and a one-year free extension benefit is also provided.
Another Shinsegae-affiliated e-commerce platform, SSG.com, has segmented its paid membership services to attract customers. In addition to the existing 'Shinsegae Universe Club,' it launched the 'Shinsegae Universe SSG Delivery Club,' specialized in groceries, on the 14th of last month. The SSG Delivery Club provides three free shipping coupons and three 8% discount coupons each month. Free shipping coupons can be used on orders over 14,900 KRW, and discount coupons are applicable for purchases over 50,000 KRW.
The SSG Delivery Club has seen an increase in subscribers as it lowered its annual fee to celebrate its launch. SSG.com decided to reduce the annual fees for both the SSG Delivery Club and the Shinsegae Universe Club from 30,000 KRW to 10,000 KRW until the end of this year. As a result, from the 1st to the 7th of this month, new subscriptions to the SSG Delivery Club increased by 30% compared to the previous week.
The reason each company is once again enhancing the benefits of paid memberships coincides with the timing of the membership fee increase by Coupang, considered the largest e-commerce platform in Korea. Coupang's Wow Membership fee was raised for existing subscribers starting this month. Accordingly, the Wow Membership fee increased from 4,990 KRW to 7,890 KRW. The fee for new subscribers had already been raised since April.
In response, e-commerce companies have also conducted customized promotions targeting customers switching memberships. SSG.com held a 'Moving Support Fund' event until the 11th of last month. If SSG Delivery Club subscribers uploaded a screenshot of their use of another company's membership on the event page, they received 15,000 KRW in SSG Money, a cash-equivalent credit.
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