Coupang, the South Korean e-commerce giant, has been gaining market share in the Korean online market at an alarming rate. Coupang began as an online marketplace similar to Amazon in the US. Like Amazon, Coupang has heavily invested in expanding its market share, even without making any profits.
Since the COVID-19 pandemic, which accelerated the growth of e-commerce as people stayed home to shop, Coupang has risen to the top of the Korean e-commerce market with its lightening-fast delivery and competitive pricing. Coupang's growth has shown no signs of slowing down. The company recently branched out into other areas, such as its own over-the-top(OTT) streaming service, Coupang Play, which offers users a wide variety of content, including dramas, movies, sports, and more. Coupang's membership program, which costs just 5,000won(4 USD) per a month, gives users access to all of its services, including Coupang Play and Coupang Eats with a 10% discount. With its customer-centric services, Coupang now has over 11 million members.
However, Coupang's rapid growth has raised concerns among its competitors. For example, Baemin, a popular food delivery platform in Korea, is worried that it will lose market share to Coupang, which is now offering the same service and heavily promoting its 10% discount. Additionally, many retailers are facing pressure to sell their products to Coupang at a lower price than they offer to other platforms. If they refuse, Coupang may simply not sell their products at all. CJ, a major Korean retailer, has publicly expressed its dissatisfaction with Coupang's aggressive pricing tactics, arguing that they are unfair and could lead to losses for retailers. The two companies are currently in a legal battle.
Person 1: Hey, did you hear about Coupang's latest move?
Person 2: No, what is it?
Person 1: They're launching a new OTT streaming service.
Person 2: Really? That's interesting. I wonder if it will be any good.
Person 1: Yeah, me too. But it's definitely going to shake up the Korean streaming market.
Person 2: For sure. Coupang has been muscling in on all of its competitors lately.
Person 1: I know, right? It's like they're trying to take over the world.
Person 2: Well, they're definitely doing something right. They've become the number one e-commerce company in Korea in just a few years.
Person 1: Yeah, that's true. But I'm starting to get a little worried about their aggressive pricing tactics. It's not fair to the smaller businesses that they're competing with.
Person 2: I agree. It's important to have competition in the market, but Coupang is starting to become a monopoly.
Person 1: I hope the government does something to stop them before it's too late.
Person 2: Me too. But I'm not holding my breath.
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