Lowest Prices, Free Shipping, and Items from 100 Won... Retail Industry Faces Off with 'Even Cheaper Prices'

Emart Offers eMoney Rewards if Prices Are Higher Than Coupang or Lotte Mart
Coupang Provides Free Shipping for All Customers

[Asia Economy Reporter Jo In-kyung] The distribution industry has launched an aggressive 'price competition' led by groceries and daily necessities. With the rapid growth of the e-commerce market, the boundaries between online and offline markets are breaking down, and alliances between industries are accelerating, intensifying survival competition and leading to a direct confrontation using 'lower prices' as a weapon.

Lowest Price Guarantee Revived After 14 Years

According to the distribution industry on the 10th, Emart introduced the 'Lowest Price Guarantee Accumulation System' starting from the 8th, which rewards customers with 'e-money' for the price difference if the price of a product purchased in-store is higher than the same product sold on Coupang, Lotte Mart online mall, or Homeplus online mall. About 500 items including snacks, instant rice, bottled water, and processed/living goods such as tissue and shampoo are eligible.

The compensation works by accumulating the price difference in e-money; for example, if a product is purchased at Emart for 1,500 won but sold on Coupang for 1,000 won, the 500 won difference is credited as e-money. E-money can be used like cash at Emart stores. This is similar to the 'Lowest Price Guarantee' Emart had in 2001, which compensated customers if Emart's products were more expensive than other large marts within the same commercial area (within a 5 km radius). At that time, the system was abolished in 2007 due to the cumbersome process requiring consumers to visit other stores and verify prices themselves, which failed to gain much traction.

The lowest price guarantee accumulation system, reintroduced after 14 years, allows customers to simply press the application button on the receipt in the Emart app, which automatically compares prices. Choi Hun-hak, Emart's Marketing Executive Director, said, "We made it so that customers can gain satisfaction from rational shopping without the hassle of comparing prices one by one," adding, "We hope customers can feel price benefits and enjoyment throughout their entire shopping journey."

Targeting Price Reduction Effect Through Free Shipping

Coupang took the lead ahead of Emart by playing the 'free shipping' card. Since the 2nd of this month, Coupang has started offering 'unconditional free shipping' on all 'Rocket Delivery' products (directly purchased and self-delivered products), regardless of membership status or purchase amount. Previously, free shipping was only available to paid membership members, but the benefit has now been extended to general members as well.

Coupang explained, "Even if consumers search for the lowest price and place an order, the addition of shipping fees at the payment stage can make the product more expensive, so this measure reflects that." Although this is a limited-time campaign, there is also a strategy to encourage general members who experience free shipping benefits to sign up for paid membership.

In response to Coupang, Naver is considering introducing same-day and next-day delivery of Shinsegae and Emart products through its own grocery shopping service within this year, along with offering free shipping benefits using membership.

Market Kurly is also aiming to secure additional customers with '100-won deals' and 'free shipping' benefits for first-time buyers. The number of popular products available for 100 won for new members has increased from 6 to 10 per month. A new free shipping campaign has also been launched, offering free shipping time based on the payment amount at first purchase. For a purchase amount of 50,000 won, free shipping is provided for 50,000 minutes (34 days 17 hours 20 minutes) from the purchase date, and for 100,000 won, free shipping is provided for 100,000 minutes (69 days 10 hours 40 minutes).

An industry insider said, "Large marts and e-commerce companies, which had been competing with differentiated products and fast delivery services for a while, are returning to a competition system based on price itself," and pointed out, "Aggressive marketing and cutthroat competition that eat into their own profits can ultimately lead to excessive cost burdens for each company."

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