Naver Plus Store Surpasses 3 Million New Installs in Just Half a Month
Launch Discounts and AI Recommendations Drive Rapid User Growth
E-commerce Competition Intensifies with Fast Delivery and Low Prices
Naver Bets on AI Shopping Guide and Enhanced Delivery Services
Naver's newly launched shopping app, 'Naver Plus Store,' is achieving strong performance in its early stages. This is due to initial launch discounts combined with AI-based product recommendations, fast delivery, and free returns.
According to Mobile Index by data platform company IGAWorks on the 11th, the Naver Plus Store app recorded 2.84 million new app installations last month. This is the highest number of new installations among shopping apps during the same period, approximately 2.5 times the 1.16 million installations of Temu, a C-commerce (Chinese e-commerce) app, which ranked second. Mobile Index estimates new installation numbers based on Android and iOS user data.
Industry insiders believe that the actual number of new installations of the Naver Plus Store app has far exceeded 3 million. Considering that the app was released on the 12th of last month for Android and on the 19th for iOS, more than 3 million users installed the app within just half a month. In addition to the standalone app, Naver Plus Store can also be accessed through the bottom tab of the Naver app or via web pages, so the actual number of users is estimated to be even higher.
The success in attracting early customers to the Naver Plus Store app is attributed to the provision of discount coupons and large-scale sales events launched alongside the app. To coincide with the app launch, Naver provided a blanket 10% discount coupon for customers making their first purchase on the app with purchases over 20,000 KRW, and twice daily, up to 15% discount coupons were offered on a first-come, first-served basis. Until the 30th of last month, time-limited deals and other discount events were also held.
The main challenge now is to ensure that these newly acquired users continue to use Naver Plus Store. Competition in the e-commerce market has intensified since the emergence of Coupang, which boasts fast delivery represented by 'Rocket Delivery' and discounts as its weapons. Additionally, C-commerce's continued push into the Korean market with ultra-low prices adds to the competition.
Naver's key feature promoted through Plus Store is AI shopping. Naver is implementing an 'On-Service AI' strategy that integrates AI into its services, and in Naver Plus Store, this is provided in the form of an 'AI Shopping Guide.' For example, when searching for 'notebook' in Naver Plus Store, the AI automatically recommends products based on keywords such as 'portable' or 'suitable for college students.' Naver plans to further enhance AI-based personalized recommendation functions.
Fast delivery options such as same-day and weekend delivery, as well as free returns, are also emphasized. Since the launch of the Plus Store app on the 12th of last month, Naver upgraded its delivery service to 'Naver Delivery (N Delivery)' and segmented delivery options into today, tomorrow, Sunday, and preferred dates. Members of Naver's paid membership, 'Naver Plus Membership,' can receive free shipping on purchases over 10,000 KRW, with free returns and exchanges also provided as standard.
Given the solid performance of Naver Plus Store in its early app launch phase, securities firms predict that it will serve as a long-term growth foundation for Naver's commerce business depending on future results. Ji-hyun Kim, a researcher at Heungkuk Securities, stated in a report, "We have confirmed strengthened membership and delivery capabilities to lock in users to Naver Shopping," adding, "Plus Store is conducting recommendations and promotions optimized for users' interests, which will lead to long-term growth in commerce advertising."
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