Naver and Emart Join Forces to Counter 'Coupang'... Battle to Secure Loyal Customers
250 Billion Won Equity Swap Next Week
[Asia Economy Reporter Jo In-kyung] In an effort to counter Coupang, which is preparing for a U.S. stock market listing, alliances and mergers within the e-commerce and distribution industries are rapidly progressing. Emart, the number one offline retailer by transaction volume, and Naver, the number one online retailer, have formed a blood alliance through a share exchange, reshaping the distribution market.
According to industry sources on the 10th, Emart and Naver are expected to sign an agreement as early as next week and complete a share exchange worth approximately 250 billion KRW. For Naver, this will compensate for its lack of offline logistics centers, while Emart is expected to use this as an opportunity to expand its business in the e-commerce market, where it is a latecomer.
The e-commerce industry is focusing intensely on securing loyal customers through paid membership subscriptions, following fierce delivery competition. Currently, Coupang leads the market. Coupang's transaction volume last year was about 20.9 trillion KRW, which is still less than Naver Shopping's 26.8 trillion KRW, but its ‘Rocket Wow’ membership, which costs 2,900 KRW per month, has reached 5 million members?double Naver’s paid membership ‘Naver Plus’ with 2.5 million members.
Subscription-based monthly membership services are one of the core elements in platform businesses. They not only generate steady cash flow but also increase user loyalty. This is why Coupang is expanding services for paid members from dawn delivery to fresh food, OTT, food delivery, and live commerce.
Emart is expected to focus on converting its 20 million Shinsaegae Point members into paid members through cooperation with Naver.
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An industry insider said, "The e-commerce industry fundamentally follows a winner-takes-all structure where the top company dominates even as the overall market grows. The cooperation between Emart and Naver carries various implications, including transaction volume, securing loyal customers, and the combination of e-commerce and content."
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