Shinesegae opens online marketplace in South Korea

Date : 10 November 2020

Jiong-Jiong Yu

Senior Retail Analyst

The leading retailer's ecommerce platform, SSG.com, will launch new market service in December, in direct competition with Coupang.

Host small dealers to increase online SKUs

Currently SSG.com sells products directly purchased from suppliers or partners. The 10m products that it carries only account for 10% of SKUs on an average online marketplace.

By hosting smaller dealers on its platform, SSG.com will have a much richer product offering, attract new shoppers and increase its online value.

In April, its rival Lotte also opened its online shopping mall to small dealers. As a result, the number of products on Lotte’s online platform increased from 1.8m to 25m in a short space of time.

In competition with Coupang and Naver

A Shinsegae official said that the rivals of its new online marketplace are Coupang and Naver. However, it will not provide overnight delivery service for small dealers like its rivals do, which no doubt will put a dent into its competitiveness. SSG.com’s simple payment system SSG Pay can be used on its online marketplace for fast payment and extra convenience.

Shinsegae appointed Mr Kang Hee-suk, CEO of Emart, to lead SSG.com. Kang replaced CEO Lee Gap-su in January 2019 to turn around the chain's performance.