Naver, the leaders of the global mobile market and the domestic distribution market, and the head of Shinsegae meet face-to-face and are drawing attention from the industry.
Shinsegae Group Vice Chairman Jeong Yong-jin visited Naver in Bundang on the 28th to meet Naver’s founder Lee Hae-jin, Global Investment Manager (GIO). The meeting of the two makes the distribution industry very tense.
This is because Naver Shopping, which has grown rapidly based on Naver, the number one search portal in Korea, and Shinsegae, which has a strong power in the offline distribution market such as department stores, cannot look good from a competitor’s point of view.
Naver-Shinsegae strengthens online and offline distribution competitiveness through equity exchange or strategic alliance
First of all, the most promising cooperation between the two companies in the industry is to increase the competitiveness of online and offline distribution through equity exchange or strategic alliance.
Naver can use Shinsegae’s various products and distribution networks located throughout the region, while Shinsegae can expand its sales channels using Naver commerce platforms such as smart stores.
Naver, which has rapidly expanded its product lineup for small and medium-sized business people, can be an opportunity to attract various brands and products sold in hypermarkets and department stores to the Naver Commerce platform. As Shinsegae has expanded its online sales network through SSG.com, etc., it can enhance its competitiveness in the e-commerce field through collaboration with Naver.
As Coupang is pursuing an IPO, and 11st, a subsidiary of SK Telecom, has joined hands with Amazon, it seems clear from Naver and Shinsegae that it is time for a new breakthrough in some way.
Did we discuss the acquisition of eBay Korea with the 5 trillion ransom price?
Another possibility is the picture of the two companies joining hands in the acquisition of eBay Korea, which has been for sale on the market. Currently, eBay Korea is waiting for a new owner with an enterprise value of about 5 trillion won. As the US eBay announced that it is “in the midst of a strategic review in relation to Korean business,” the industry expects the sale of eBay Korea to accelerate.
In the meantime, Korean distributors such as Shinsegae, Lotte, and Hyundai, as well as private equity firms such as MBK Partners and Coleberg Kravis Roberts (KKR), have been mentioned as possible companies to acquire eBay Korea. However, there were many skeptical reactions to the question of who could embrace eBay Korea with nearly 5 trillion won.
But what if Shinsegae and Naver join hands and share eBay Korea? Of course, this picture is only a’scenario’, but if the needs of Shinsegae, who are thirsty for online distribution, and Naver’s desire to increase competitiveness in the money distribution field, are well matched, it seems to be not impossible at all. It is a burden for the two companies to have it alone, but if you share it, it means that eBay Korea is a very good target.
Naver and Shinsegae are unstoppable in pioneering future food
Naver is aggressive in the areas of distribution, finance, and content. I am holding hands or mixing blood with the strong in each area so that I can feel the desperate sense of being destroyed if I miss the time.
Naver signed a business agreement with BGF Retail this month and promised to provide a new service experience by combining the capabilities of both companies in the online and offline field. For example, it is possible to contribute to sales improvement of convenience store store owners by recommending products for sale based on online and offline data, or linking products selected by Naver Smart Store sellers to be sold at CU convenience stores.
In particular, Naver is showing unstoppable moves in the field of logistics and contents. Last year, CJ ENM and Studio Dragon each exchanged KRW 150 billion worth of shares, and CJ Logistics exchanged KRW 300 billion worth of shares. Through this, Naver has actively secured content that has increased in demand in the non-face-to-face era, and has become a strong alliance in the delivery (logistics) area, which had limitations.
Furthermore, Naver is expanding into the K-pop-centered entertainment market by investing more than 400 billion won in B&X, a subsidiary of Big Hit Entertainment. Naver has already invested in YG Entertainment and SM Entertainment to act as a major shareholder.
Shinsegae E-Mart is trying to expand the customer experience by acquiring SK Wyverns, a professional baseball team, for KRW 135.2 billion. The plan is to change the baseball field into a’lifestyle center’ so that you can enjoy the services of Shinsegae Group as well as baseball in one place.
Vice Chairman Chung Yong-jin revealed his willingness to strengthen the online business by saying, “We are considering various measures including the acquisition of 11th Street” when 11st Street was sold for sale in 2017.
According to the industry at the time, Shinsegae considered the acquisition of 11st Street, but the negotiations were not made because SK demanded an equity investment under conditions not to surrender management rights, but it is true that Shinsegae’s move to expand online was more diligent than other companies. .
Related Articles
Naver “Growth with small businesses through cooperation such as commerce and logistics”
Seong-Suk Han “The growth of small businesses is the driving force of Naver…Growing together in a crisis”
Naver, Strategic Investment in Big Hit’s Subsidiary’BNX’…
Mobile Era’大魚’ eBay·Yogi.
The drawings of GIO Hae-jin Hae-jin and Vice Chairman Jeong Yong-jin are still only sketchy. It is not yet possible to confirm whether the two met and checked only the difference between their positions and whether they separated or even discussed quite specific cooperation plans.
However, it seems clear that there will be a strong storm in the near future in the domestic distribution market where Coupang and Naver Shopping are rapidly growing and the sale of eBay Korea is being promoted. And it seems obvious that now is the time to pass the’storm’s eye’.