Recently, Naver Shopping, introduced same-day and Sunday delivery services with a guaranteed arrival, is emerging as an alternative to Coupang, which relies on Rocket Delivery. Naver Shopping is positioning itself as an online alternative distribution channel for consumer goods manufacturers in food and beauty categories by launching a delivery service that rivals Rocket Delivery.
According to industry sources on the 7th, Amorepacific recently showcased exclusive hair and body products sold only at the Naver official brand store with guaranteed arrival. Instead of joining Coupang Rocket Delivery, Binggrae has established a direct mall on Naver to sell exclusive products. CJ CheilJedang applies guaranteed arrival to over 1,000 products for sale.
Naver Shopping’s guaranteed arrival same-day delivery includes not only consumer goods (FMCG) such as Harim, Cheongwon, Sampyo, and Pigeon, but also vitamin and nutritional supplements from companies like Korea Yakult and Jongga. Brands like SPAO clothing have also entered the platform.
Manufacturers are using Naver Shopping as a key online distribution channel because they believe they can sell products while maintaining the delivery service quality that customers perceive.
In response to Coupang’s direct importing structure, Naver Shopping operates its business in the form of a D2C (Direct-to-Consumer) platform. While Coupang purchases products from manufacturers, stores them in warehouses, and then sells them, Naver Shopping provides a platform and solution for manufacturers to secure direct customer contact and sell products. Naver acts as a kind of self-owned mall for manufacturers, allowing them to reduce delivery costs to distribution companies.
Furthermore, Naver has been rapidly advancing by expanding its guaranteed arrival solution to same-day and Sunday delivery options, providing manufacturers with a fast shipping alternative aside from Coupang.
As Naver Shopping rises as an alternative, there are expectations that the negotiating power of manufacturers and logistics companies, which have been focused on Coupang for a while, may shift towards them. Coupang has maintained control over manufacturers during the delivery negotiation process with its high market share and overwhelming logistics competitiveness.
According to the industry, Coupang has also faced conflicts with manufacturers during margin rate negotiations. For example, CJ CheilJedang, which clashed with Coupang over rice delivery prices and margin rates, has been siding with Naver after Rocket Delivery was suspended, starting from 2022. Similarly, LG Household & Health Care reconciled with Coupang after conflicts once AliExpress was onboard. Johnson & Johnson, who stopped supplying Rocket Delivery during margin rate negotiations with Coupang last year, is actively utilizing Naver’s guaranteed arrival service.
An industry official mentioned that, “While there are products that Coupang falls short of compared to Naver Shopping in terms of price competitiveness or product diversity, the presence of Coupang’s competitors will act as an opportunity for manufacturers to diversify their e-commerce strategies, ultimately forming a favorable structure for buyers.”