021-06-13 18:13
Coupang to jump into live commerce business in July
After going public on the New York Stock Exchange in February and securing funds to invest 5 trillion won ($4.48 billion) in business expansion, Coupang is now jumping into the live commerce sector.
Live commerce is an online e-commerce method where retailers sell products through real-time video. Buyers can communicate with each other or ask show hosts questions about items when the broadcast is live.
The country's largest e-commerce firm said it is renovating the whole 13th floor of Tower 730, where its headquarters is located in Jamsil, southeastern Seoul. Coupang plans to operate a number of studios for live commerce broadcasting there and construction is scheduled to be completed by the end of this month.
The size of one floor in this building stretches 898.5 square meters, which is 11 times bigger than the 150-square-meter studio that Kakao uses for its live commerce operation.
Reports said Coupang will open 11 studios on the 13th floor, but Coupang denied this, refusing to give the exact number of studios it will operate and only confirming that the space is currently being outfitted for live commerce use.
Online retailers are finding live commerce attractive as it possesses explosive growth potential. There are many advantages that customers can find with live commerce.
Coupang has already tested its live commerce business with cosmetics in March.
There are other big names in the e-commerce sector that have jumped into live commerce before Coupang, but the unicorn firm has no fear of competition.
It plans to adopt an "all-in" strategy, where the company invests heavily in marketing to take away customers from its competitors and win a large market share.
It played the same game in the food delivery service sector after entering the market later than Baedal Minjok, Yogiyo and Baedaltong, but has already joined the top three this year, pushing Baedaltong aside.
Coupang sees big potential in live commerce. Looking only at the domestic market, it could grow by seven times year-on-year. The size of the live commerce market reached 400 billion won last year, which is now 2.8 trillion won. By 2023, the market is expected to grow to 10 trillion won.
"Coupang has witnessed the marketability and growth potential of live commerce. It is only a matter of time before the online retail giant expands the item category," an industry source said. "It is not a threatening player in the sector yet, but it can become a key player in a short period of time if it is willing to spend big."
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