Input 2021.02.19 06:00
According to Samsung Securities on the 18th, the GMV of Coupang and Naver Shopping in 2020 is 22 trillion won and 27 trillion won, respectively. EBay Korea is worth 19 trillion won. The amount of online shopping transactions in 2020 revealed by the National Statistical Office is 161 trillion won. Coupang and Naver accounted for about 30% of the domestic e-commerce market.
The distribution industry believes that there is a deal that Coupang is missing despite the expansion of its distribution center. The transaction volume has increased explosively in the last year, but logistics has not been able to keep up.
According to a stock exchange report filed with the SEC, Coupang’s active users ranged from 11.79 million in 2019 to 14.85 million in 2020, and the average transaction amount per person was from 180,000 won in 2019 to 280,000 won in 2020, and sales were $6.273.26 million in 2019. It has nearly doubled from (6.91 trillion won) to 11,197 billion won (13.19 trillion won) in 2020. Coupang announced its position to expand the area available for same-day delivery to the whole country through a stock exchange report.
Naver Shopping is a commerce platform built on a search engine. As of June last year, Naver’s monthly active users (MAU) reached 3,0160,000. Including PC web users, the overall MAU is higher. Compared to Coupang’s 2020 active users, it is about twice as many.
Naver has partnered with CJ Logistics to strengthen its logistics division, which is less than its rival Coupang. It is to solve the increasing amount of logistics through an external full-filment center.
In terms of the volume of transactions, the gap between Coupang and Naver Shopping and SSG.com is large. The annual transaction amount of SSG.com in 2020 is 4 trillion won. SSG.com is competing against Coupang and Naver with’fresh food’. SSG.com delivered an average of 130,000 cases per day. The company plans to expand to 380,000 cases by 2025.
SSG.com is active in expanding the full-filment distribution center like Coupang. It is operating NE.O distribution centers in three locations including Yongin and Gimpo. Neo has automated 80% of the entire process from order to delivery preparation. Based on Gimpo Neo, it processes one order every 2 seconds. For processed foods, it takes 40 minutes to get all ready for shipping. However, as distribution centers are concentrated in the metropolitan area, it will take time to expand the nationwide network. The reason Shinsegae established three full-filment distribution centers in the metropolitan area is that 50% of the total population is concentrated in the metropolitan area.
In the distribution industry, companies such as eBay Korea (Gmarket, Auction, G9), SSG.com, and 11st are competing for the middle rankings, while Coupang and Naver Shopping have established a two-strong system. In the securities industry, companies such as Tmon are preparing to be listed, but it is evaluated that a disruption in the IPO stage may occur if investors are not sure that they can survive in the market.
Timon promoted listing in 2017, but it failed due to poor performance. As of 2019, the sales amounted to 17.5 billion won. Tmon is currently pursuing listing with Mirae Asset Daewoo selected as the host company.
An official in the distribution industry said, “EBay Korea is a paid member system, SSG.com is fresh food, 11st Street is confronting Coupang and Naver Shopping with a weapon of collaboration and live commerce.” In the long run, it can be cut off from the market.”
Reporter Kim Hyung-won [email protected]
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