Photo = Yonhap News
Naver and E-Mart held an agreement ceremony for strategic alliance at JW Marriott Hotel on the 16th. From Shinsegae, Vice Chairman Jeong Yong-jin and Kang Hee-seok, CEO of E-Mart, and Naver, Lee Hae-jin and CEO Han Sung-suk, are known to attend. It is reported that an agreement between the two companies on the exchange of shares in the amount of 200 to 300 billion won was in progress.
With this, the triangular alliance between Naver-Shinsegae-CJ was formed with Naver’s founder Lee Hae-jin, who was from Samsung SDS. Naver made an exchange of 600 billion won worth of shares with CJ Group in October of last year. At that time, CJ Group handed over shares of Korea Express and ENM to Naver. Naver complements the logistics network, which is considered a weakness, and CJ Group is a structure to spur content export through the Naver platform.
It is not known what kind of synergy effect Naver and E-Mart will create through the exchange of shares. An official from the investment banking (IB) industry said, “I know that the two companies first agreed to mix blood due to the Coupang shock,” and “the management of both companies is constantly discussing what can be done.”
Some point out that the partnership effect will not be great. First of all, you can think of cooperation in the field of logistics. This is a plan for Naver Smart Store sellers to use’Neo’ in Yongin and Gimpo, owned by SSG.com. In the logistics industry, it is believed that the reality is inferior. The number of’Capa’ that’Neo’ can immediately ship orders placed online is about 79,000 cases per day. Delivery in connection with E-Mart stores is currently around 50,000 cases per day. E-Mart’s goal is to increase it to 360,000 cases a day by 2025.
Considering that Naver’s annual transaction amount is 22 trillion won (approximately 15 trillion won based on smart store), SSG.com’s contribution is only’blood of a new step’. Moreover, Neo’s’location’, which is concentrated in the southwestern part of the metropolitan area such as Yongin and Gimpo, overlaps with CJ Logistics. The Konjiam Full-filment Center, owned by Korea Express, is the largest single logistics facility in Korea. It is equivalent to 16 soccer fields and handles 1.7 million parcels per day.
There may be a result of E-Mart group going into Naver’s umbrella. SSG.com has unrivaled strengths in the field of fresh food and’luxury’ through partnership with E-Mart. Even if it tries to expand its scope to the non-fresh field, it is blocked by Naver Shopping, which puts the’Long-tail Law’ ahead, and Coupang, which is aggressive in volume with’Rocket Delivery’ and the lowest price policy. As for E-Mart, the moment it enters a huge platform called Naver, it is like giving up the competition in the big frame of’retail platform’.
Online shopping malls such as eBay Korea, 11th Street, Timon, and WeMef aimed at Naver as Naver strengthened its shopping field and called it’The King of Feudal Lords’. It is a protest that Naver is subduing itself by proposing its’exclusive status’ as a platform operator of search and price comparison. SSG.com was also a member of the’anti-Naver front’, at least until the end of last year. When Shinsegae embraces eBay Korea, the number of cases becomes more complicated. EBay Korea, which operates Gmarket, Auction, and G9, is regarded as the’Big 3’in the industry based on the amount of transactions.
Officials in the distribution and IT industry are the norm that the founder Lee Hae-jin’s sense of crisis is in place when the pan-Samsung family has joined hands with Naver as its peak. The shock of Coupang, which debuted on the New York Stock Exchange, was bigger than expected. An official from the IB industry said, “Naver and E-Mart initially decided to make a synergistic business first, and the exchange of shares was slow.” I know that it is attached.”
Reporter Park Dong-hui [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution