South Korea’s Naver introduces its innovative Plus Store app, leveraging AI for personalized shopping, while navigating a competitive logistics landscape.
Naver, one of South Korea’s prominent online search engine operators, has recently introduced a new e-commerce application called Naver Plus Store, which is currently available on Google Play. An announcement regarding its release on the Apple App Store is anticipated shortly.
This innovative app leverages artificial intelligence (AI) to analyze a variety of data, including user demographics, shopping behaviors, and market trends, to generate personalized shopping recommendations. This feature aims to enhance the user experience by catering to individual preferences, thereby making online shopping more tailored and efficient.
In a bid to improve operational efficiency and customer satisfaction, Naver has forged partnerships with logistics providers, including CJ Logistics. These collaborations are designed to offer services such as same-day and next-day delivery, free returns, and various flexible delivery options, potentially appealing to consumers who prioritize convenience in their shopping experiences.
However, Naver’s approach to logistics differs from that of Coupang, its main competitor. Coupang operates its own logistics network, which allows it to provide direct sales through a service known as Rocket Delivery. In contrast, Naver has chosen to rely on third-party sellers and partners for logistics support. This distinction may affect Naver’s ability to compete effectively against Coupang, particularly when it comes to delivery speed and overall operational efficiency.
Despite Naver holding a larger user base of 44.1 million monthly active users compared to Coupang’s 32.9 million, Coupang leads significantly in the area of paid memberships, boasting over 14 million members. Naver currently has approximately 4.6 million paid members, highlighting the competitive landscape of South Korea’s e-commerce sector.
The launch of the Naver Plus Store represents a significant strategic move into the e-commerce domain. However, the effectiveness of this initiative in closing the gap with Coupang remains to be seen as the e-commerce market continues to evolve.
Source: Noah Wire Services
