Spurred by the Coupang personal data leak, small and mid-sized sellers are overhauling their distribution strategies. As some consumers leave Coupang and high margins remain a burden, they are expanding to other platforms such as Musinsa and Market Kurly. At the same time, they are focusing on growing their own online stores to secure loyal customers.
According to small and midsize business circles on the 16th, small and mid-sized cosmetics companies plan to expand collaborations and promotions with Musinsa next year.
Musinsa's margin rate is around 30%, lower than Coupang's 40%. While it is higher than other e-commerce companies such as Gmarket and 11Street (15%–20%), they judged it the right time to "leave Coupang," as Musinsa is aggressively expanding into cosmetics.
A representative at a mid-sized cosmetics company said, "Among those newly listed on Musinsa this year, there is a company that posted sales close to 200 million won."
The person added, "Typically, mobile live generates little revenue relative to viewers, so it is often done for publicity, but when Musinsa runs mobile live, sales can reach tens of millions of won," and noted, "Musinsa is also strongly committed to growing its cosmetics segment, creating a collaborative atmosphere."
According to the National Data Office, by last year's sales, Coupang ranked No. 1 with a 22.7% share of the domestic e-commerce market.
However, use of domestic e-commerce platforms has been increasing since the personal data leak.
Mobile Index by data tech corporations IGAworks said that daily active users (DAU) in the e-commerce sector, excluding Coupang, increased by up to 45% from the week before the incident.
The personal data leak and the "leave Coupang" trend are intersecting to cause a seismic shift. Musinsa's beauty category sales in the first half of this year more than doubled from the same period last year.
At the women's fashion platform ably, the transaction amount of newly listed beauty brands this year increased by more than eightfold at most. This is the result of onboarding both small and large brands along with continued spending by those in their teens and 20s.
Small food companies are again citing Kurly as a key alternative. It allows access to a consumer base focused on premium and fresh foods, and its exposure that emphasizes brand narrative and quality is favorable for building loyal customers. The margin rate is around 20%, lower than Coupang's, and there is less pressure for increases.
Kurly's operating profit in the third quarter of this year was 6.1 billion won, turning to a profit, and the food category's transaction amount rose 7.7% from the same period last year thanks to strong sales of fresh products.
A representative at a small food company said, "Kurly has a more stringent onboarding process and higher entry barriers than Coupang, but it does not demand annual margin hikes, making it easier to set entry prices and distribution strategies," and explained, "It also has an early-morning delivery system, enabling control over freshness and brand management."
Small and mid-sized corporations are also putting weight behind nurturing their own online stores to preserve revenue. According to an analysis in November of about 1 million brand-owned store transaction data by the shopping mall solution imweb, fashion and apparel rose 19% from the previous month, and food and beverages rose 15%. Furniture and home decor climbed 31%.
A distribution company representative said, "As Tmon and WeMakePrice shut down, a 'Coupang-only dominance' structure has solidified."
The person explained, "Coupang's solo run has narrowed sellers' options, and they are repeatedly debating how to grow their own stores," adding, "With consumer backlash after the personal data leak, this is a moment to reexamine sales diversification strategies."