Rising Stars of Korean E-commerce: Insights from Consumer Transaction Data

Summary

       
• Coupang's Growth: Coupang (CPNG:US) reported a 21% YoY FX-neutral revenue growth in 2Q23.
       
• Kurly's Recovery: After a decline in 4Q22, Kurly shows signs of recovery with a turnaround in 2Q23.
       
• Oasis's Expansion: Oasis reported a 15% YoY revenue growth in 2Q23.
       
• Consumer Transaction Data: Aicel Technologies' consumer data highlights growth patterns and consumer spending trends.
       
• Market Evolution: The e-commerce industry continues to transform, driven by key metrics like active customers and average revenue per user (ARPU).
   

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Introduction

The Korean e-commerce industry is experiencing a dynamic transformation, driven by major players like Coupang, Kurly, and Oasis. This article leverages card transaction data from Aicel Technologies to provide insights into the growth patterns, consumer spending trends, and future prospects of these e-commerce giants.

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Coupang's Growth and Consumer Engagement

Revenue Growth and Customer Base

Coupang (CPNG:US) reported a 21% YoY FX-neutral revenue growth in 2Q23, aligning with Aicel’s estimate of 22.7% YoY. Coupang's Product Commerce segment saw a 21.6% YoY growth in constant currency. Aicel’s data indicates that active Coupang customers have increased, leading to higher first-month spending and a broader loyal customer base. This growth enhances Coupang's operational profit margin by increasing ARPU and reducing customer attrition costs.

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Kurly's Recovery and Market Position

Revenue and Customer Trends

Kurly reported a 2022 revenue of KRW 2 trillion, reflecting a 30% YoY growth, though Aicel had estimated a 39% growth. Aicel's consumer transaction data suggested a reversal in Kurly’s growth in 4Q22, with declines in GMV and active customers. However, recent data indicates a recovery, with a turnaround in 2Q23 revenue growth. Kurly’s new paid membership service, 'Kurly Members', and the return of previously lost consumers play significant roles in this recovery.

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Oasis's Expansion and IPO Potential

Revenue Growth and Strategic Focus

Oasis reported a 15% YoY revenue growth in 2Q23. Although this represents a slight slowdown in growth compared to previous quarters, it aligns with Gaeasoft(051160:KS)’s report of a 12% YoY increase in the Oasis division's revenue. Aicel’s data suggests that Oasis's pace of expansion in early 2023 falls short of its 2023 target. As the sole profitable early-morning delivery company in Korea, Oasis faces challenges in maintaining rapid revenue growth amidst intense competition.

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Consumer Transaction Data Insights

Key Metrics and Trends

Aicel Technologies' consumer transaction data reveals crucial metrics such as active customers, ARPU, and transaction volumes. These indicators provide valuable insights into consumer behavior and spending patterns, helping e-commerce platforms refine their strategies to drive growth.

Market Evolution and Strategic Implications

The continuous evolution of the e-commerce industry requires careful monitoring of diverse data associated with e-commerce platforms. For investors, understanding these data trends is essential for identifying market shifts and making informed investment decisions.

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Conclusion

The Korean e-commerce industry is characterized by rapid growth and transformation, driven by major players like Coupang, Kurly, and Oasis. Aicel Technologies' consumer transaction data provides critical insights into these trends, helping stakeholders understand the dynamics and future prospects of the e-commerce market.