For brands wanting to expand internationally, choosing which marketplaces to begin with can be an intimidating and frustrating process. Choosing the right marketplaces for your products depends on many variables such as product demand, distribution process, local restrictions, and others. As a 3P partner for international marketplaces, Pattern has helped hundreds of brands expand internationally by carefully selecting the right marketplaces and regions for their brand.
One marketplace that brands wanting to expand into the Asia-Pacific region should consider selling on is Coupang–the biggest ecommerce marketplace in Korea. The size of South Korea’s growing ecommerce market and the increasing demand for international products are just some of the reasons why brands should think about selling on Coupang.
1. Growing Ecommerce Market in South Korea
South Korea is the 6th largest ecommerce market in the world, with a predicted revenue of US $101.80 billion in 2023. The South Korean ecommerce market is estimated to show an annual growth rate of 3.45%, resulting in a projected market volume of US $116.60 billion by 2027, making it an attractive market for international brands.
In addition, South Korean online shoppers are extremely well connected to the world of ecommerce. The consumer society has an internet usage rate of 93% among the population–the highest percentage in the Asia Pacific region. Brands looking for a great online marketplace opportunity in the Asia-Pacific region can do very well in South Korea.
2. Coupang is Korea’s Biggest Online Marketplace
The biggest player in the South Korean ecommerce market is Coupang. Its growth strategy for the next few years includes attracting more customers, increasing customer engagement, and growing its product selection. Much like Amazon, Coupang is focused on offering a broad selection at the lowest prices available in the market.
To stay one step ahead of competitors, Coupang has also invested heavily in convenience, particularly around speed of delivery and ease of returns. In addition, Coupang has built its own end-to-end infrastructure, including logistics and technology, which has allowed it to differentiate its offer from other marketplaces in the region and maximize efficiencies to consumers.
3. Increasing Demand for International Products on Coupang
While 70% of merchants on the marketplace are small businesses, it is also a channel to market for larger international brands. LEGO, Gap and Nature’s Way are just a few examples of large brands who have begun selling on Coupang.
What’s more, Coupang’s profile has increased significantly outside of South Korea in the last couple of years. In late 2019, it launched a global partner program to help international brands enter South Korea using the platform; this included the opening of international warehouses, such as one in California where US brands can store goods to be sold cross-border.
Go International with Pattern
As a brand wanting to expand internationally, make sure to consider the many successful marketplaces that could be a catapult for your brand’s success internationally. Navigating your brand’s international expansion on your own can be intimidating, even with the best of internal ecommerce teams. Many find themselves ill-equipped to meet the global, multi-channel demands of international ecommerce, but our expert teams can help you successfully strategize about how to move forward.
If you’re interested in selling on Coupang or other international marketplaces, Pattern can help. As a global ecommerce accelerator, Pattern has helped brands successfully expand to all major international marketplaces, and with our regional experts and proprietary data we can help you too.
Looking to expand your brand internationally? Contact us.
