Seoul, South Korea – Despite intense competition from Chinese e-commerce platforms last year, South Korean retailers SSG.com and Coupang managed to retain a loyal customer base, according to a new report from data platform iGAWorks.
However, the overall spending per user across all online shopping platforms decreased significantly due to a weakening economy.
An analysis of monthly active users (MAU) and estimated credit card payments revealed that SSG.com had the highest average estimated payment per user at 131,772 won, followed by Coupang at 95,166 won and Gmarket at 85,200 won.
Chinese platforms like AliExpress and Temu had the lowest average estimated payments per user.
The average estimated payment per user is often used as a measure of customer loyalty, as frequent users of a specific platform tend to spend more per transaction.
SSG.com's higher average payment can be attributed to its diverse product offerings, ranging from groceries to luxury goods, which cater to a wide range of customer needs. The platform's integration with offline retailers such as E-Mart and Shinsegae Department Store also contributed to its strong customer base.
While Coupang and Gmarket also maintained strong positions in terms of average estimated payment, there was a noticeable decline in spending compared to the previous year for most platforms.
Coupang, however, bucked the trend, with an 11% increase in average estimated payment per user. This growth came despite a hike in its Wow Membership fees last year, suggesting that the platform's value proposition remains strong.
In terms of annual estimated payments, Coupang dominated the market with 35.37 trillion won, more than double the combined total of its five closest competitors.
The report highlights the resilience of South Korea's e-commerce market, with major players successfully navigating economic challenges. However, the intense competition and evolving consumer behavior suggest that the landscape is likely to continue evolving in the coming years.
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