As Coupang (CPNG) has stumbled for months in the aftermath of a personal data leak that occurred last November, other e-commerce players led by Naver (035420.KS) are reaping the benefits in earnest. With competitors aggressively targeting customers who have left Coupang, the industry is watching closely to see whether the medium- to long-term e-commerce landscape will shift.
According to industry sources on Monday, Naver will invest 33 billion won to raise its stake in Kurly from 5.1% to 6.2%. Kurly plans to use the funds to expand its logistics infrastructure and pursue new businesses. Naver's latest investment is seen as part of its drive to expand its commerce division.
Naver believes that Kurly & Mart, a service launched in partnership with Kurly last September, has absorbed some of Coupang's fresh food delivery demand since the data leak. "The Kurly & Mart service is creating synergy in terms of logistics and grocery demand," a Naver official said. "Since the investment flows into Kurly's logistics services and Kurly's logistics subsidiary is part of Naver's logistics alliance, this investment will further strengthen our delivery competitiveness."
User numbers for Naver Plus Store have been growing rapidly. According to WiseApp·Retail, Naver Plus Store's monthly active users (MAU) reached 8,385,113 last month, a 45.1% jump from 5,777,814 in November last year. This stands in contrast to Coupang, whose MAU fell 3% over the same period. Temu and SSG.com also saw their MAUs rise 6.1% and 12.3% respectively, benefiting from Coupang's incident.
The growth momentum in Naver's commerce division is also evident in its first-quarter earnings. According to Naver, first-quarter revenue from the Naver Platform unit, which includes the advertising and commerce divisions, came in at 1.8398 trillion won, up 14.7% year-on-year. Within platform revenue, the services segment that includes the commerce ecosystem—Naver Plus Store, membership, and N-Delivery—grew 35.6%. It also rose about 2% from the fourth quarter of last year. SK Securities said in a recent report, "Naver has been benefiting from the exodus of Coupang customers since late last year. Membership users and shopping transaction volumes are expanding."
Choi Soo-yeon, CEO of Naver, has also expressed her commitment to nurturing the commerce business. At an earnings conference call on April 30, Choi previewed the introduction of unlimited free delivery linked to the 4,900-won-per-month Naver Plus membership. It signals her intent to grow the commerce division through stronger delivery competitiveness.
The industry expects e-commerce competition to intensify further in the second half of the year. Traditional offline retailers such as Shinsegae and Lotte are also focusing on the online grocery market. SSG.com is already absorbing Coupang's fresh food demand alongside Naver. In addition, Lotte Mart plans to launch its Ocado logistics center within the year to enhance its fresh food delivery and overall business competitiveness.
Gmarket and 11Street appear to be expanding market share in non-food categories. Gmarket saw its average spending per customer rise 10% year-on-year in March, with transaction volume up 12%. The two companies plan to accelerate their reverse direct purchase platform strategy this year as a growth driver.
However, some observers expect Coupang to maintain its top position, given the wide gap in user numbers between Coupang and other e-commerce players. Bom Kim, chairman of Coupang Inc., said, "Even during the data incident, the vast majority of customers did not leave and increased their spending, and customers who returned did not split their spending across other alternatives. This suggests that the value we provide remains powerful." Regarding the push from Chinese e-commerce platforms, Kim also expressed confidence, saying, "Coupang provides unmatched value through its combination of selection, price, and delivery. This is our growth engine."
