SEOUL, April 26 (AJU PRESS) - Following Coupang's recent announcement of a 58 percent increase in its monthly premium membership fee, Korean e-commerce firms are in a race to attract former Coupang customers.
On April 12, Coupang disclosed a plan to raise its monthly premium subscription fee from 4,990 won ($3.6) to 7,890 won. The premium membership offers benefits like free delivery, unlimited video streaming, and complimentary food delivery. The price hike has already been applied to newly registered users starting April 13. It will be imposed on all users by the end of August.
Currently, non-paid Coupang customers must spend over 198,000 won to access quick delivery services. They also miss out on the popular overnight fresh goods delivery. Expressing discomfort, 37-year-old office worker Jeong Gu-yeon said, "I've used Coupang for years, but there are cheaper options for instant delivery."
Keen to capitalize on the exodus of customers like Jeong, other major e-commerce players are launching aggressive marketing drives. Korea's top internet portal, Naver, launched an overnight delivery service for groceries in the capital area on April 15. Naver will also provide weekend deliveries for select products by the end of 2024. Currently, only a few e-commerce platforms, including Coupang, offer weekend parcel deliveries.
Retail giant Shinsegae Group is also luring former Coupang customers by slashing its integrated premium service subscription fee by 84 percent to 4,900 won. Shinsegae's online shopping malls, Gmarket and Auction, offer new customers an extended free annual premium subscription for one year. Shinsegae's premium membership is applied to a variety of online shopping malls and mobile platforms affiliated with the group.
Nonetheless, some still find Coupang's membership worth it. "I get free delivery for food and groceries, plus video streaming for less than 10,000 won per month," said 44-year-old lawyer Oh Ye-seo.
Coupang launched its iconic one-day "Rocket Delivery" service in 2014, quickly winning over busy young workers and housewives. The popularity of the quick grocery delivery service skyrocketed in 2020 during the COVID-19 pandemic. The company saw its user base grow to 20.4 million in the third quarter of 2023, with analysts predicting the company will post its first annual profit in 2024.
reporter
Park Sae-jin
swatchsjp@ajunews.com
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