Online Platform "Nolleowayo Jeontong Sijang"

Naver, Coupang Eats, and Startups Compete Fiercely

Bindaetteok from Gwangjang Market, dumplings from Namdaemun Market, yellowtail sashimi from Garak Market, jokbal from Mangwon Market, and sesame oil from Moran Market. These representative foods available at traditional markets have recently shared a common feature. That is, orders can be placed through online platforms and products can be quickly received via delivery. Not only mouth-watering foods but also various items sold at traditional markets such as meat, vegetables, dried seafood, fruits, nuts, and seasonings are conveniently delivered to homes. This marks the era of contactless shopping, a new breeze blowing through traditional markets that had been stagnant due to the prolonged COVID-19 pandemic. As COVID-19 continues, competition among platforms for the online transformation of traditional markets is intensifying ahead of this year's Lunar New Year.

According to industry sources on the 1st, portals, delivery applications (apps), and startups are fiercely competing to sell and deliver traditional market products online. As platforms actively increase the number of traditional markets they serve, and since traditional markets can join various private platforms based on merchants' associations' autonomy, consumers have a wider range of choices.

◆Naver Leads Even in Traditional Markets=Among private platforms, the leader is Naver’s ‘Neighborhood Market Shopping’. Naver started ‘Market Specialty’ in 2017, delivering market products via regular courier, and since 2019 has been operating ‘Neighborhood Market Shopping’, which offers short-distance delivery. The core of this service is ordering fresh ingredients, side dishes, and snacks like twisted doughnuts or glutinous rice cakes from local traditional markets online and receiving delivery within two hours.

What stands out is the rapid increase in serviceable markets. Starting with Amsa General Market in Gangdong, Seoul in January 2019, the service was available in 32 traditional markets including parts of Seoul, Gyeonggi, and Gyeongnam by August last year, then increased to 48 in October, and now has expanded to over 80 locations. This is due to the contribution to revitalizing traditional market consumption, with total service orders in the second quarter of last year increasing 12.5 times compared to the same period the previous year as the impact of COVID-19 became more pronounced. Naver explained that this is the result of the convergence of users wanting contactless consumption and traditional market merchants’ desire to expand online sales channels.

◆Coupang Eats Partners with Seoul City=While Naver’s Neighborhood Market Shopping offers delivery within two hours for purchased products, delivery apps like Baedal Minjok and Coupang Eats deliver individual menu items from restaurants within traditional markets. These are faster but focused on food.

In particular, Coupang Eats is expanding its service markets in partnership with Seoul City. In September, it provided services in 22 traditional markets, but by the end of last year, this increased to more than 40. Large traditional markets such as Gwangjang Market in Jongno-gu, Gaepo Market in Gangnam-gu, and Namdaemun Market in Jung-gu are all included. A Coupang Eats official said, "We have collaborated with Seoul City to provide onboarding education to traditional market merchants unfamiliar with online delivery, supported marketing costs and order mediation fees, and led the establishment of a new win-win model. Based on our know-how operating traditional markets in Seoul, we have launched services in traditional markets in Incheon and Busan, and plan to continue expanding projects to Gyeonggi Province and six metropolitan cities."

◆Startups Also Say "Come Visit the Market"=Among startup platforms, there is ‘Nolleowayo Market (Noljang)’, which started service in March last year. It currently operates in 28 traditional markets including Gwangmyeong Traditional Market and Suyu Market. When traditional market merchants receive orders through the Noljang app, ordered products are gathered and moved to a logistics center within the market, and a dedicated delivery manager delivers the items by motorcycle within two hours. It is characterized by being more market-friendly, with no commission fees and acceptance of Onnuri gift certificates.

Actually, Ahn Kyung-ae, head of the Noljang headquarters and also a merchant at Gwangmyeong Traditional Market, said, "From the merchant’s perspective, there is no commission burden, and consumers can purchase at market prices, which are advantages. Compared to platforms like Naver and Coupang, the expansion speed is slower, but the current user base reaches 100,000, and many users reorder after trying it once."

This content was produced with the assistance of AI translation services.