[팩플]Shopping Giant Coupang vs Search Demon King Naver… It took 520 trillion stakes

In the listing of shopping king Coupang, search king Naver had plans. Coupang and Naver are expected to fight fiercely over a market worth 520 trillion won. The point of watching is.

Bum-seok Kim, Chairman of Coupang’s Board of Directors (Wan) and Lee Hae-jin, Naver Global Investment Manager (GIO). Photo center photo

· Coupang said in a listing declaration filed with the US Securities and Exchange Commission (SEC) on the 12th, “Korea’s 470 billion dollars (about 520 trillion won) Distribution·Food·Food Delivery·Travel “The share of Coupang in the market is still insignificant.” It is a claim that Coupang has a lot of growth potential, and it is a declaration that Coupang is aiming for the entire market.
· Naver plans to issue corporate bonds this spring. The known scale is around 1 trillion won at home and abroad. In the performance announcement last month, ‘Large-scale investment in new business fields such as shopping and contentFor the sake of’. Naver recorded 1,215.3 billion won in operating profit last year. Nevertheless, in preparation for the listing of Coupang, it will secure more live ammunition.
· The confrontation between the strongest in search and the strongest in shopping is a fixed procedure. Even if you look at America, GoogleThe biggest competitor early AmazonI have been preparing for it. Consumers only try to find the products they want, and the distinction between’shopping companies’ and’search companies’ is meaningless.

Coupang is resembling Naver’s technological DNA, and Naver is resembling Coupang’s fearless investment.

① Coupang that resembles Naver
· Coupang held its first developer conference’Reaveal 2020′ in December last year. Vice President Jeon Jun-hee from Google and Chief Technology Officer (CTO) of Tuan Pam from Uber appeared, introducing Coupang’s search, big data, and artificial intelligence (AI) technologies, saying’Come to Coupang’. ‘Coupang is a top-notch tech company’It was no different from publicity. Because the annual developer conference is an opportunity to show off the company’s technology and gather outside talent. The developer conference held by Naver since 2006 is the largest in Korea.
· Coupang launched a video service (OTT)’Coupang Play’ in December of last year and included it in its’Rocket Wow Membership’ (2,900 won per month, free rocket delivery). It is similar to Naver Plus Membership (4,900 won per month, shopping savings and content provision) that Naver released in June last year. However, compared to Naver’s sooner or later addition of OTT (CJ Teabing) to membership and even webtoon and sound sources, Coupang’s content composition is weak.

② Naver is resembling Coupang
· Naver is’Coupang-style investment to dominate the marketProfessed’. In the earnings announcement, he publicly announced that he will focus on expanding the business rather than profits for the time being, saying,’It is difficult to tell you about short-term operating margin improvement.
· Naver Shoppers unit priceIs concentrating on increasing According to the company, the purchase amount per person for a smart store last year increased by 47% compared to the previous year. After signing up for Plus membership, even those who previously purchased less than 200,000 won per month at Naver Shopping will increase their payment by more than 5 times. However, the number of registered members (estimated 2.5 million at the end of January) is less than Coupang (4.7 million).

Naver and Coupang subscription membership graphic image. Graphic = Reporter Kim Hyun-seo

· Coupang Logistics infrastructure is uniqueto be. According to the listing report, Coupang has more than 100 distribution centers nationwide, and 70% of Korea’s population resides within 11km of Coupang distribution center. It is also competitiveness that imprinted the experience of’Coupang rocket delivery is the fastest’ to consumers. Coupang, which resumed the parcel delivery business this year (a freight car transport business), is now able to deliver products from other companies in addition to direct purchases.
· Naver He is good at growing plates. It is building the Naver shopping ecosystem by linking content, search, and finance with shopping. It is also advantageous for Naver that the trend of combining entertainment with shopping is increasing. An example is selling products from Naver Webtoon’s original drama’Goddess Advent’ on Naver’s Shopping Live. Naver, in cooperation with Mirae Asset, released credit ratings and loan products for small business owners, and settled the sales quickly. It leads sellers to open stores (smart stores) in Naver.

· NaverIs solving logistics through partnerships with other companies. In the meantime, it has exchanged 300 billion won worth of stock with CJ Logistics, and has invested heavily in logistics startups such as WeKip, Hour Market, and Brandy, as well as delivery agencies such as Vureung and Saenggakdae. However, existing couriers are in controversy over overworking in couriers, and in the midst of this, Coupang professed to “distribute 100 billion won worth of stock to on-site employees such as Coupang friends” in the listing report. The key is whether Naver will be able to overcome the controversy in the parcel delivery industry only through partnership.
· Coupang Amazon’s bold shopping investment, the role model, was made possible by the surplus of Amazon Web Services (AWS). However, Coupang does not have such a source of income. Rather, Naver, which has invested in shopping with search ad revenue, is closer to the Amazon method. Platform labor issues remain. In addition to the delivery personnel (Coupang Friends) directly hired by Coupang, Coupang Flex and Coupangitz delivery personnel can be a variable in Coupang’s cost structure if it is arranged in a future’employment relationship’ with Coupang.

Reporter Shim Seo-hyun [email protected]

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