The number of Korean traditional markets partnered with Naver’s ‘Neighborhood Market Shopping’ service has decreased from 170 in 2022 to 71 currently, amid the rise of Coupang.
Launched in January 2019, Naver’s Neighborhood Market Shopping service allows users to order products from traditional markets via Naver Shopping, with delivery within two hours or by the end of the day. This service received positive feedback from some markets after its launch. For instance, Amsa General Market, which joined Naver Shopping in 2019, achieved cumulative sales of 2.3 billion won and 200,000 orders in three years. During the same period, the number of Naver Shopping-affiliated stores in this market increased from 12 to 40, and the range of products grew to around 1,000.
Naver explained that the reduction in the number of partnered markets was aimed at improving management efficiency. A company representative stated, “It’s not that the business potential of the Neighborhood Market Shopping service declined, but rather we streamlined markets that had not successfully undergone digital transformation to enhance efficiency.”
However, industry perspectives differ. Many traditional markets have gradually lost interest in Naver’s service after Coupang started a service similar to the Neighborhood Market Shopping service in late 2022. Initially, Coupang focused on stores in the metropolitan area, adding 35 stores from traditional markets in Seoul, Daegu, and Gwangju to the platform. But now, it plans to add more than 100 stores nationwide this year.
Coupang Eats, Coupang’s food delivery service, has also penetrated traditional markets by bringing more than 1,600 stores from 135 traditional markets across the country onto its platform over the past three years. Coupang Eats offers these stores free delivery services and discounted brokerage fees.
A Naver representative commented, “Naver pursues a long-tail strategy focused on the diversity of small and medium-sized businesses,” adding that “simple numerical comparisons with other platforms are inappropriate.”
