Input 2021.03.05 10:27
Search, advertisement, payment, and now delivery service
“I’ve already been subordinated for a long time…I hold my life”
Naver’s presence in the domestic online shopping market is absolute. From simple search to price comparison with other companies, advertisements, payments, etc., both sellers and buyers are highly dependent on buying and selling products without going through Naver. It is true that it is a free platform with zero cost to enter, and has a great utility, such as a low payment fee and a simple payment system compared to other open markets. In addition, Naver’s recent logistics business is speeding up, and among small and medium-sized businesses, there is anxiety that “it is increasingly scary to subordinate to Naver.”
According to the information technology (IT) industry on the 5th, the online service with the largest amount of payment in Korea in January was Naver. This is the result of an app analysis company WiseApp surveying payment amounts such as credit, debit card, and account transfer for people over the age of 20. Naver ranked first with KRW 2.805.6 billion and Coupang ranked second with KRW 2,4072 trillion. Other services such as webtoon are included, but as the proportion of payments related to shopping is large, it is estimated that Naver is in the lead in the domestic e-commerce (e-commerce) market.
‘Naver Membership Plus’, which provides additional shopping points and various content benefits for 4,900 won per month, is also a factor that intensifies the phenomenon of’Naver subordination’. Naver Membership, launched in June of last year, has secured 2.5 million subscribers at the end of the year. Naver is aggressive in marketing to secure subscribers, such as introducing an annual subscription model that lowers the usage fee to 3900 won per month. In addition, so far, benefits have been given mainly to services operated by Naver such as Naver Webtoon, audio book, and music platform’Vive’. In addition, CJ announced the news of its partnership with Teabing, an online video service (OTT). In the future, Naver membership subscribers will be able to choose the’unlimited use of teabing broadcasts’ as a benefit, and the influence of Naver membership is expected to expand further.
The next blueprint for Naver Shopping is logistics. Naver announced on the 2nd that it will focus on logistics for small and medium-sized business people this year at an event delivering news of its major business. CJ Logistics is a major partner, and Naver plans to expand its own distribution network through alliances and investments with various logistics startups. The intention is to build customized logistics tailored to the characteristics of each industry so that sellers can focus on product competitiveness without worrying about distribution networks. Although there is no disagreement that it is meaningful, it is a point of concern that Naver is strengthening its unrivaled position in the online shopping market. The logistics system was the one that Coupang, who had been fighting for superiority in the same industry, had an advantage over Naver.
The president of a company who entered Naver Shopping said, “Naver is definitely cheaper than other platforms and has more support programs.” “The relationship is right, and the story will not change after we settle down to some extent later?” Another company president said, “In fact, online shopping operators have already been subordinated to Naver for a long time.” “I said.