E-commerce apps see loyalty slip as shoppers hunt for good prices

(News1)

The proportion of consumers who rely on only one comprehensive shopping app is on a sharp decline as users increasingly compare prices across multiple apps to maximize value.

According to data released by WiseApp·Retail on Tuesday, the proportion of single-app usage rate for Coupang Inc. fell from 44.3 percent in 2023 to 39.8 percent last year and to 37.1 percent this year, based on November data.

The number of Coupang-only users declined by about 150,000 on month to 12.77 million in November.

Analysts also point to a recent large-scale personal data breach as a factor prompting users to explore alternative platforms.

As of November this year, single-app usage rates for nine comprehensive malls excluding Coupang were all below 10 percent. 11Street Co. recorded 7.3 percent while Temu stood at 5.8 percent. AliExpress, the second-largest platform by user count, had a single-app usage rate of just 3.9 percent.

These rates have steadily declined over the past two years, indicating intensifying competition alongside value-driven consumption trends.

A significant portion of Coupang users also use Chinese platforms, data showed.

Among Coupang users, 24.4 percent also use AliExpress and 21.5 percent use Temu – higher than those who also use 11Street (19.8 percent) or Gmarket (17.9 percent).

“The number of cherry pickers, or consumers who carefully choose the most advantageous options based on value for money, has increased significantly,” said Suh Yong-gu, a business administration professor at Sookmyung Women’s University. “This trend naturally leads to the use of multiple commerce apps.”

For e-commerce companies, declining single-app usage rates translate into higher marketing costs, as discounts and coupons are needed to attract users who shop across multiple platforms.

Gmarket, for instance, recently announced plans to spend 100 billion won ($67.6 million) annually on customer promotions and marketing.