A Market Kurly delivery truck makes early-morning rounds as part of the company’s signature fresh grocery delivery service. (Courtesy of Market Kurly)
SEOUL, Jan. 21 (Korea Bizwire) — South Korea’s e-commerce market is showing early signs of change following a recent personal data breach at Coupang, as consumers begin moving to rival platforms — particularly for fresh food delivery — lifting usage and sales metrics across the industry.
According to retail industry data released Tuesday, Market Kurly reported that its number of orders in December rose more than 15 percent from a year earlier, as an influx of new customers absorbed much of the demand for early-morning grocery delivery once dominated by Coupang.
Estimates from Mobile Index show Kurly’s monthly active users reached 4.49 million in December, a 34 percent increase from a year earlier and the highest level on record. The figure also marked an 11 percent rise from November.
Growth was especially strong in Kurly’s paid membership service, Kurly Members, which offers free delivery and discounts for a monthly fee of 1,900 won. The number of subscribers nearly doubled from a year earlier, with December recording the sharpest month-on-month increase.
SSG.com’s new membership program, “SSG Seven Club.” (Image courtesy of Shinsegae)
Industry analysts note that about 70 percent of Kurly’s total transaction value comes from membership customers, suggesting that the surge in paid users could translate into a meaningful improvement in earnings. Investment banks estimate that Kurly’s gross merchandise value grew more than 20 percent in December, with the company expected to post its first-ever double-digit revenue growth in the fourth quarter.
SSG.com, the e-commerce arm of Shinsegae Group, is also benefiting from what consumers have dubbed the “leaving Coupang” trend.
Between Jan. 1 and 15, the platform’s average daily new visitors jumped 330 percent from a year earlier, driving a 53 percent increase in first-time orders for its SSG Delivery service. Order volumes rose 15 percent from December levels, indicating that new traffic is translating into actual purchases.
Coupang’s data breach undetected for five months, triggering customer alarm (Yonhap)
To cope with the sudden surge in demand, competitors are moving quickly to expand logistics capacity.
Kurly is reviewing changes to its delivery structure after a sharp rise in order volumes pushed fulfillment centers toward capacity. The company is considering offering more flexible delivery time slots to better distribute workloads across its overnight and rapid-delivery services.
SSG.com, which operates both overnight and same-day delivery services, has also streamlined its early-morning logistics operations and plans to expand its quick-delivery fulfillment hubs from 60 to 90 locations by the first half of this year.
E-commerce companies see the current moment as a rare opening to challenge Coupang’s long-standing dominance, which has been built on scale, logistics and customer lock-in. With trust in the market leader shaken, rivals are ramping up marketing efforts aimed at converting one-time switchers into long-term users.
“After years of being overshadowed by Coupang, competitors are finally seeing the ‘exodus effect’ reflected in real numbers,” an industry official said. “The key now is turning this short-term shift into repeat purchases and lasting loyalty.”
Ashley Song (ashley@koreabizwire.com)
