A Coupang logistics center in Seoul (Image courtesy of Yonhap)
SEOUL, Oct. 4 (Korea Bizwire) – Coupang, the South Korean e-commerce giant, has seen an increase in its user base despite raising its membership fees. This development challenges predictions of a mass exodus from the platform and underscores the company’s strong market position in a fiercely competitive landscape.
According to data from WiseApp, Coupang’s monthly active users (MAU) reached 32.1 million in September, a 0.9% increase from the previous month. This growth comes on the heels of Coupang’s decision in August to raise its Wow membership fee from 4,990 won to 7,890 won.
Industry analysts attribute Coupang’s resilience to several factors. The recent payment delays experienced by competitors Tmon and WeMakePrice have intensified the concentration of users on major platforms.
Additionally, Coupang’s robust Rocket Delivery service continues to be a key differentiator in the market.
While Coupang flourishes, other domestic e-commerce players are struggling. 11Street, Gmarket, and other top-five e-commerce companies all reported decreases in their MAU for September.
11Street saw a 1.1% drop to 7.38 million users, while Gmarket experienced a 1.5% decrease to 5.29 million users.
Faced with persistent losses and a sluggish economy, Korean e-commerce companies are implementing cost-cutting measures. SSG.com recently announced plans to relocate its headquarters from Gangnam to Yeongdeungpo in February 2025, marking its second move in two and a half years.
The company, which has yet to turn a profit since its establishment, has been focusing on profitability and aggressive cost reductions since last year.
Similarly, 11Street moved its office from Seoul Square in Jung-gu to Uplanet Tower in Gwangmyeong last month. Lotte On relocated from Lotte World Tower to Teheran-ro in Gangnam in July.
Both companies are also offering voluntary retirement packages to streamline their organizations.
The challenges for Korean companies extend to the reverse direct purchase market, where they face stiff competition from global giants.
AliExpress Korea has promised zero commission and deposit fees for sellers over the next five years, while Amazon Global Selling Korea held a K-Beauty Conference for domestic beauty brands in June.
In response, Korean companies are emphasizing product quality and reliable services. Gmarket’s Global Shop is running a ChallenGmarket promotion until October 13, offering up to 70% discounts on premium K-products to overseas consumers.
The promotion, curated in collaboration with the Korea SMEs and Startups Agency, prioritizes quality over discount rates.
An industry insider commented, “Trust in domestic e-commerce companies has declined following the Tmon incident, making business increasingly challenging. To survive, it’s crucial to develop competitiveness that differentiates from Coupang or C-commerce.”
Ashley Song (ashley@koreabizwire.com)
