Data

Coupang: Enhancing Overseas Direct Purchases to Challenge AliExpress and Temu

Coupang: Enhancing Overseas Direct Purchases to Challenge AliExpress and Temu
I kyung Park
Mar 21, 2024

Summary

  • Coupang (CPNG:US) launched its "Rocket Direct Purchase for Japanese goods" service, offering a variety of Japanese products.
  • Direct purchases from Japan show a preference for fashion and food items.
  • Coupang's move aims to differentiate itself from AliExpress and Temu, which focus in fashion and small appliances.

Introduction

Coupang (CPNG:US), South Korea's e-commerce giant, has taken a strategic step to expand its market share by enhancing its overseas direct purchase service. This move aims to counter the growing dominance of Chinese competitors AliExpress (BABA:US) and Temu (PDD:US). On March 11, Coupang introduced its "Rocket Direct Purchase for Japanese goods" service, which offers a wide range of products directly sourced from Japan. This initiative highlights Coupang's efforts to diversify its product offerings and attract more consumers in South Korea.

Coupang's Introduction of Rocket Direct Purchases for Japanese goods

Coupang's new service, Rocket Direct Purchase for Japanese goods, features an appealing selection of products from Japan. Among the popular items are snacks, breakfast cereals, Nissin cup noodles, and bath products. This service has garnered significant attention due to the variety and quality of products available, catering to the diverse preferences of South Korean consumers.

Search Volume of Japan direct purchase and Rocket direct purchase

Direct Purchases from Japan and China Reveal Clear Disparities in Product Category Preferences

In South Korea, fashion remains the most popular category for direct purchases from Japan, accounting for around 30% of such transactions. This is followed by food and beverages, which make up about 15%. On the other hand, direct purchases from China also include fashion as a significant category, but food and beverages represent a much smaller share, less than 5%. This pattern reflects the product offerings of platforms like AliExpress and Temu, which focus heavily on fashion and small appliances rather than food products.

Direct purchase from Japan by category
Direct purchase from China by Category

Coupang's Response to AliExpress and Temu's Expansion

Coupang's decision to introduce a direct purchasing service from Japan is a strategic response to the increasing presence and market share expansion of Chinese e-commerce giants AliExpress and Temu. By offering a distinctive selection of Japanese products, Coupang aims to differentiate itself and capture a larger share of the market. This move not only addresses the growing competition but also caters to the evolving preferences of South Korean consumers.

Weekly Consumer transaction data of Coupang, Aliexpress, Temu

Conclusion

Coupang's enhancement of its overseas direct purchase service is a calculated move to strengthen its position in the competitive e-commerce market in South Korea. By focusing on popular Japanese products, Coupang aims to offer unique value to its customers and stand out against formidable competitors like AliExpress and Temu. As Coupang continues to innovate and adapt to market trends, it is poised to maintain and possibly increase its market share in the dynamic e-commerce landscape.

This analysis is based on data collected and processed by Aicel Technologies, providing insights into the strategic moves of e-commerce companies in South Korea.

Related Articles

up to nav button