Coupang, Naver Shopping dominate Korean online mall market with 65% share

Coupang Inc. headquarters in Seoul [Photo by Park Hyung-ki]

Coupang Inc. and Naver Shopping, the e-commerce arm of South Korean portal giant Naver Corp., are solidifying their dominance in the country’s online shopping mall market, holding a combined market share of almost 65 percent.

According to a survey conducted by local market data tracker Opensurvey between June 1 and 5 on 2,500 consumers aged 20~59 with online shopping experience within the past month, Coupang is the most frequently used online retailer with 37.7 percent, followed by Naver Shopping with 27.2 percent.

Coupang saw a 3.5 percentage point increase in its market share from the previous year and Naver Shopping 3.7 percentage points.

Gmarket Inc. followed with 6.8 percent, 11Street Co. with 5.5 percent, Auction Co. with 3.0 percent, and SSG.com Corp. with 2.3 percent.

Coupang users cited fast delivery, easy exchange and refund, and cheap prices, while Naver Shopping users highlighted easy access through the application or the website and various perks including membership benefits, and events and promotions.

In terms of weekly average purchase frequency, Coupang ranked the highest with 1.5 purchases, while other e-commerce platforms were closely behind - Naver Shopping with 1.01 purchases, Gmarket with 1.12 purchases, and 11Street with 1.01 purchases.

Coupang also saw the highest average weekly expenditure, amounting to 49,500 won ($38.55). Gmarket came in second with 47,700 won, followed by 11Street with 46,500 won and Naver Shopping with 44,000 won.

Looking into the purchase category, Coupang users bought daily necessities and groceries the most, while Naver Shopping users showed more variety in their purchases, including apparel, sports, leisure, automotive, furniture, and interior items.

Electronics and digital products were most bought on Gmarket, while apparel and e-coupons and tickets were most bought on 11Street.

Concerning membership satisfaction, Coupang’s membership Rocket Wow ranked top with 4.08 points, followed by Naver’s Plus Membership with 4.05 points, and Gmarket’s Smile Club with 3.80 points.

Rocket Wow was praised for its delivery and payment benefits, and Naver’s membership received positive feedback for its various affiliated stores, usability, and the ability to share accounts with family and acquaintances. Both memberships, however, were criticized for their expensive monthly fees and insufficient exclusive benefits.

Smile Club members listed point-savings, discounts, and membership-exclusive benefits as the most useful membership perks, although they said the scale of benefits was not significant.

Meanwhile, three out of 10 consumers expressed intention to join the Shinsegae Group’s recently launched integrated membership program, Universe Club.

Those that had no intention to join the Shinsegae membership program cited expensive membership fees, low expectation of actual benefits, overlaps with their existing memberships on other platforms, and the absence of benefits they were seeking.