Shinsegae Group and Alibaba Group are expected to change the landscape of the e-commerce industry as they launch their joint venture in electronic commerce. Coupang is closely monitoring this development and preparing countermeasures.

According to the retail industry on the 6th, Coupang is reported to have swiftly begun formulating strategies to respond to these movements. There are concerns that Coupang's market share could decline, especially if Gmarket and AliExpress launch large-scale discount promotions backed by competitive pricing.

Shinsegae Group announces the establishment of a joint venture with Alibaba International, a subsidiary of China's Alibaba Group, with an investment ratio of 50:50 on the 26th. The joint venture, scheduled to be established next year, includes Gmarket and Alibaba Group's e-commerce platform AliExpress Korea. The picture shows the Shinsegae Department Store in Myeongdong, Seoul. /Courtesy of Yonhap News Agency

The joint venture between Gmarket and Ali will be established with a 50:50 investment ratio, and Gmarket and AliExpress Korea are expected to be the main platforms. The purpose of this venture is to supply K-products to the global market through Gmarket's network of 600,000 sellers. However, along with expanding into overseas markets, the strategy also aims to secure market share domestically, making full-fledged competition with Coupang inevitable.

According to Mobile Index data, as of December last year, the monthly user count for Gmarket, Auction, and AliExpress totaled 13.9 million, while Coupang had 32.02 million.

Additionally, as CJ Logistics has introduced a 7-day delivery service, competition in e-commerce logistics is becoming fiercer. Users of Naver Shopping, Gmarket, and AliExpress utilizing CJ Logistics' service will now be able to receive products on weekends and holidays, increasing the likelihood that Coupang's Rocket Delivery monopoly will be shaken.

Industry insiders expect that the Shinsegae-Alibaba joint venture will launch within the first half of the year, and that logistics competition will have a significant impact starting in the second half. To maintain its market dominance, Coupang will need to adopt a multifaceted strategy, including enhancing its logistics systems, strengthening customer benefits, and expanding in global markets.

An industry official noted, "2025 is expected to be a year of significant change for the domestic e-commerce market. It will be the biggest challenge Coupang faces since the COVID-19 pandemic."