Who will be 4th in the Korean e-commerce market?

Posted 2023-07-11 12:09:38

The Korea Fair Trade Commission's approval of Qoo10's acquisition of WeMakePrice and Interpark Commerce is expected to ignite intense competition for the fourth spot in the e-commerce market in Korea.

With the approval of the acquisitions of WeMakePrice and Interpark Commerce, Qoo10, which had previously acquired TMON, has set the stage for a fierce competition with 11th Street in the domestic e-commerce market. Together, they form the so-called "T-Mepark" alliance.

According to Kyobo Securities, as of last year, the market share (based on retail sales) of the Korean e-commerce market was as follows: Coupang (24.5%), Naver (23.3%), and Gmarket (11.5%), and 11th Street (7%). Additionally, TMON (2.8%), WeMakePrice (3.9%), and Qoo10 have a combined market share of 6.7%, closely trailing behind 11th Street, resulting in intense competition for the fourth spot.

Both 11th Street and Qoo10 have strengths in cross-border shopping, indicating that they will engage in fierce competition in the global direct purchasing market.

In March 2020, 11th Street formed a strategic alliance with Amazon, the world's largest e-commerce platform, and in 2021, it opened the Amazon Global Store, allowing customers to directly purchase the millions of products available on Amazon through 11th Street.

11th Street plans to expand its presence in the e-commerce market by leveraging its competitive advantage in global direct purchasing through the Amazon Global Store. They are actively engaging in customer acquisition by offering the "Summer Black Friday" event, where popular Amazon products will be available at discounts of up to 42% from the 11th to the 15th of this month.

Qoo10, an e-commerce company based in South Asia, also has strengths in the field of cross-border shopping. Qoo10 operates online shopping malls in Singapore, Indonesia, and China, and continues its business in 11 languages and 24 countries, including Europe and the Americas. Qoo10 plans to absorb domestic direct purchasing demand through TMON, WeMakePrice, and Interpark Commerce. According to the Fair Trade Commission, Qoo10, TMON, WeMakePrice, and Interpark Commerce together hold a market share of 8.57% in the global direct purchasing market.