Coupang Dominates South Korea's E-commerce Market
Desk
korocamia@naver.com | 2025-01-15 05:10:20
Seoul, South Korea – Coupang, South Korea's largest e-commerce company, has solidified its dominance in the market, widening the gap between itself and its competitors. Despite a challenging economic climate that has led consumers to tighten their belts, Coupang has managed to attract customers away from rivals.
According to data from mobile analytics firm Mobile Index, Coupang's customers spent a staggering 3.23 trillion won (approximately US$2.5 billion) on credit card purchases in December alone. This figure dwarfs the combined spending on other top e-commerce platforms, including Gmarket, CJ ONSTYLE, 11st, GS Shop, SSG.com, Hyundai Home Shopping, Auction, AliExpress, and Lotte Home Shopping.
A closer look at quarterly data reveals that Coupang's dominance has been steadily growing. Its credit card transaction volume increased from 8.34 trillion won in the first quarter to 9.49 trillion won in the fourth quarter. In contrast, the combined transaction volume of the nine other online shopping companies declined from the second quarter onwards before rebounding slightly in the fourth quarter, likely due to the Black Friday effect.
Coupang's success is attributed to its high customer loyalty. Mobile Index data shows that Coupang was the only top 10 e-commerce company to experience a month-on-month increase in transaction volume in December. Moreover, its customer repurchase rate was a remarkable 83% in December, significantly higher than its competitors.
AliExpress, a Chinese e-commerce giant, was the only other platform that showed substantial growth. Its dedicated 'K-Venue' for Korean products contributed to this increase. With a partnership between Shinsegae and Alibaba, AliExpress is expected to expand its market share in South Korea further.
However, Coupang faces new challenges. Naver, South Korea's leading internet portal, is set to launch its new shopping app, 'Naver Plus Store,' in March, aiming to compete directly with Coupang.
[ⓒ Global Economic Times. 무단전재-재배포 금지]
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