en.Wedoany.com Reported - Naver is expanding its presence in the South Korean e-commerce market through artificial intelligence technology. Recently, to enhance business competitiveness, the company is considering establishing its own logistics hubs, with the potential introduction of a direct delivery model becoming a focal point.
E-commerce has become Naver's core growth engine. This move signals the company's attempt to go beyond its platform model centered on search and advertising, directly managing the entire process from product search and purchase to delivery. However, Naver stated that it is currently only in the phase of exploring various logistics competitiveness options and has not yet decided whether to immediately build logistics centers or implement direct delivery.
According to industry sources on the 8th, Naver has recently been exploring options to secure its own logistics centers centered on Seoul and the capital area, including plans to establish hubs both south and north of the Han River. Discussed options include purchasing new land to build logistics centers, acquiring existing logistics centers or long-term leasing, and securing land to lease to logistics companies. Additionally, expanding partnerships with logistics companies to upgrade the existing Naver Delivery Alliance (NFA) is also an option.
Since launching its shopping service in 2001, Naver has maintained a structure where sellers choose their own logistics companies. In 2020, the company partnered with CJ Logistics and launched the Naver Delivery Alliance (NFA). Subsequently, Naver collaborated with logistics startups such as Pasto and Poomgo, expanding services like "Guaranteed Delivery" and "N Delivery." The model involves Naver informing consumers of estimated delivery dates based on logistics data, while actual warehousing, packaging, and delivery are handled by logistics companies.
The advantage of this approach is that it allows for rapid expansion of the delivery network without the burden of building logistics centers and operating delivery personnel. However, it also reveals limitations in providing a consistent delivery experience to all consumers, as different partner logistics companies have varying operational methods and pricing systems, leading to differences in cutoff times and delivery quality depending on the seller's choice of logistics provider.
Competitor Coupang leads the market with services like Rocket Delivery, Rocket Fresh, and free returns, while SSG.COM and 11st have also joined the competition with early morning, same-day, and next-day delivery services. Naver CEO Choi Soo-yeon (최수연) stated in a conference call following the first-quarter earnings report: "Delivery is the primary task in e-commerce strategy. We are also considering a direct logistics investment model and are researching the optimal structure to reduce per-unit delivery costs while securing logistics data."
An industry insider commented: "Delivery has transcended the logistics sector to become a core criterion for consumers choosing a platform. The future structure of the e-commerce market will be reorganized based on the degree of convenience different platforms offer in the shopping experience." However, Naver remains cautious about introducing direct delivery. A company representative stated: "We are exploring various options to enhance logistics competitiveness in collaboration with logistics companies, but no decisions have been made yet. The direct delivery or self-operated logistics center model has also not been finalized."
Naver has also recently strengthened its membership services, accelerating its customer lock-in strategy. Starting from the 15th of this month, "Kurly N Mart" will operate exclusively for Naver Plus members. Kurly N Mart is an online fresh food shopping service launched in September last year through a partnership between Naver and Kurly on Naver Plus Store. It selects and sells products with high purchase frequency and preference from both companies. Orders placed before 11 PM can be received the next morning via Kurly's cold chain early morning delivery network. This is seen as a key service for Naver to supplement its relatively weak fresh food sector. The restructuring aims to enhance competitiveness in the e-commerce market by strengthening products and benefits for loyal customers with high repurchase rates.
According to Naver, as of May this year, Kurly N Mart's transaction volume has increased approximately nine-fold compared to its initial launch period, and its user base has grown about six-fold. Among Kurly N Mart users, over 90% are Naver Plus members, and the repurchase rate among members also exceeds 90%. According to Mobile Index by data analytics firm IGAWorks, the shopping app Naver Plus Store recorded a monthly active user (MAU) count of 7.77 million in April this year, setting a new record.
This trend is also reflected in performance. Naver reported first-quarter sales of 3.2411 trillion won and operating profit of 541.8 billion won this year, with sales up 16.3% year-on-year and operating profit up 7.2%. The e-commerce sector, including shopping and memberships, saw sales grow 35.6% year-on-year to 434.9 billion won, serving as a growth engine. Choi Soo-yeon emphasized during the first-quarter earnings call: "The Naver Plus Store app has become a core transaction channel driving Naver Shopping's growth since its first anniversary. In the second half of the year, we will further solidify Naver's differentiated logistics benefits compared to other platforms through unlimited free delivery for members and expansion of direct-contract fulfillment."
