Amazon and Alibaba have considerably changed how consumers think about shopping online. E-Commerce is a tough industry to break into. The companies that keep building on trust are the ones that succeed. Coupang and G-Market are two of Korea’s most trusted eCommerce companies and dominate the space. However, since E-Commerce is an innovative and highly competitive industry, there is always room for new and innovative Korean E-commerce startups that can disrupt the digital retail marketplace.
Korea’s eCommerce market is the 5th largest in the world and will be on track to be the 3rd largest by the end of 2021 (behind China and the US). Three key factors make eCommerce so successful in Korea. First, the single-person household continues to grow and currently takes up 30% of the market. These single-person households do not have the time to do offline shopping.
The second factor is Korea’s well-established digital infrastructure and open innovation. This includes many easy-to-play mobile payment systems in Korea like Kakao pay and Toss.
Lastly, South Korea has one of the best-structured logistics systems in the world. Cities in South Korea, such as Seoul, are very dense; this makes it easier to set up logistics than in other cities worldwide. Therefore, Korea’s E-commerce spending per capita has ranked 3rd for over a year. In addition, purchases made through mobile phones in South Korea hit record highs from 2020-2022 due to the novel coronavirus pandemic. Online shopping transactions were up over 12%, and live commerce in Korea is up 40%
Coupang is called the Amazon of South Korea. After going public on the NYSE in 2021, the company is valued at over $19 billion. It was one of the first tech startups to become a startup Unicorn in Korea. It didn’t start as a third-party online marketplace. Instead, Coupang started as a daily deals (coupon) business. The transition was a success, and in 3 years (2013), Coupang crossed $1 billion in sales. Coupang is an end-to-end eCommerce platform designed to serve the full eCommerce journey from desktop to doorstep.
TMON is an eCommerce platform in South Korea. They first started as a social commerce provider back in 2010. They sold discount tickets which could be used in stores in one region every midnight through their online platform. Two years ago, the company started to offer thousands of products at discount prices on their platform 24/7. Sales have increased during the last two years and a 26% growth in customers. In 2020, they got a $340 million investment from PS Alliance for 20-30% of the company.
TMON hired Mirae Asset Daewoo as its lead manager for the IPO, which could be planned for 2023. However, due to a change in leadership, they will likely look to go public in 2023. TMON turned a profit back in March of 2020 as more and more people shopped online due to COVID-19. They already drew an equity investment of $340 million from a Korean private equity fund in a pre-IPO move to bolster capital and corporate value before going public at some point in the future.
Karrot (Danggeun Market) is Korea’s largest neighborhood marketplace and community app. It offers a peer-to-peer marketplace showing only people selling around the user’s neighborhood. The seller must be within a 6-kilometer radius. The limited range makes listings easier to spot and encourages community within the neighborhood. Users can sell, buy, and trade second-hand goods ranging from headphones to luxury yachts. In addition, users can share community information such as job/housing postings to lost and found items.
Transactions can easily be done in person. All users are verified through their mobile numbers and location. The app is free; the startup only makes money through hyperlocalized advertising. Karrot has over 21 million monthly active users. They raised $162 million in their Series D round of funding ($205 million in total funding to date), which takes their valuation to $2.7 billion. Karrot has also successfully branched out into the U.K., available in 42 areas.
“Danggeun Market plans to fcous on accelerating further overseas market expansion for the next two years after closing Series D funding, and in South Korea, we will diversify our business, aiming to be a super app,” said Gary Kim the Co-Founder of Karrot.
Korean grocery eCommerce startup Market Kurly allows grocery shoppers to have fresh food delivered straight to their homes. Through the Market Kurly app, customers can order their food at night (before 11 pm), and it will arrive the following day (before 7 am). They have branded themselves well in Korea. Their service is more like the “Wholefoods” of Korean food delivery services.
The app has taken off with middle to high-income families that don’t have the time to shop offline. More and more Korean families are focusing more on quality rather than price. This is what Market Kurly is looking to capitalize on.
“Players such as Shinsegae, which runs giant supermarket chain E-Mart, are quickly trying to move into this online space. But having started and stayed offline for so long, all of their infrastructure and know-how are focused on the offline shopping experience,” said Sophie Kim, founder of Market Kurly.
They also recently closed their series F round with $200 million, raising their total funding to over $550 million. This will help them expand outside of Gangnam and into other cities in Korea. So far, the app has gotten around 300,000 people each month and has a valuation of $2 billion. They plan to do an IPO at some point in 2023 after delaying their IPO in 2022. When that happens, they will be taken off this list because they will no longer be considered a startup.
“idUS serves as a medium to introduce Korea’s excellent handmade products to foreign tourists. In addition to K-pop, K-drama, and K-fashion, K-crafts will soon become a trusted quality brand,” said the CEO of Backpackr, Kim Dong-hwan.
Once customers get their delivery, they can simply leave their boxes in front of their door, and Hello Nature will come and pick it up. Once they pick up the boxes, they will send them to a professional cleaner to reuse them for their next delivery. Furthermore, their focus on eco-friendly materials is what they feel will separate them from their competitors as more and more consumers start to care about the environment.
“I want to grow the company into a global food brand like Sunkist or Zespri. By keeping with the principle of delivering best groceries to more households, Hello Nature aims to become the Asian version of Sunkist,” said Park Byung-yul, CEO of Hello Nature.
ArtAlleys is a global artist community platform/marketplace that offers a gallery of online boutiques. They help up-and-coming artists who have small budgets get more exposure online. Therefore they connect artists to a broader range of art-lovers from all around the world. Art lovers can purchase high-quality art from new artists through ArtAlley’s curated platform. Therefore, thousands of artists worldwide showcase their art on ArtAlleys. Every piece of art is original and signed by the artist.
There are over 40,000 artworks that are displayed on BBuzzart by artists all around the world. Artists simply need to log into BBuzzart and create their own profiles. Then they will be able to upload their artwork.
BBuzzart recommends new artworks to its users through the “BBuzz pick” service every week. Therefore, users of BBuzzart will get a constant stream of new and interesting pieces of artwork every day. If users like the art, they can buy it through BBuzzart. These art pieces include paintings, drawings, photographs, sculptures, and much more. Prices range from up to $500 to more than $10,000, so there will always be something for everyone. In addition, BBuzzArt recently launched an Art Streaming Service called BBuzzCanvas and just opened the showroom/gallery at Seoul Forest on the Bundang Line (Yellow Line).
BBuzzCanvas is very beneficial to both artists and art lovers. It allows emerging artists to showcase their creative outputs and receive the art content usage fee. Art lovers have a chance to appreciate their favorite artworks in one frame.
“We’re planning to provide an eCommerce platform where artists can sell their work directly,” said CEO of BBuzzArt, Clara Shin.
The Instant Tattoo lasts for up to five days. Apply the tattoo to your skin (ensure you wash and dry first). Take off the protective film and just place it on your skin. Press down for 30 seconds and then peel off the plastic layer. To remove the Instant Tatto0, lightly rinse the tattoo with warm water and lightly scrub the tattoo with a soapy sponge. The average price for the tattoos is $12.
Jeongyookgak is a startup that focuses on online fresh meat and dairy products. Their offerings include pork, beef, eggs, milk, and chicken. They use big data and AI technology to transform the retail structure of fresh meat. They support the entire distribution process from packaging, delivery, and customer support. The process takes less than four days using their AI analysis and distribution model. They mainly target D2C commerce, which directly connects farmers and consumers. Last year, Jeongyookgak got an investment from Naver. This allows Jeongyookgak to take advantage of Naver’s logistics network.
Nurihaus is an online cross-border retail platform offering multi-category products. The product catalog includes stationery, home decor, fashion, tech products, and more from various brands. The company offers worldwide shipping. They provide a unique “Shop by Influencer” feature, which allows you to follow your favorite influencers and buy their recommended products at a discount. Therefore, their online store is curated by influencers, and all products are made in Korea.
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