Retailers rush to attract customers who are abandoning Coupang after data leak

Home > Business > Industry

print dictionary print

Retailers rush to attract customers who are abandoning Coupang after data leak

Reporters wait outside Coupang’s headquarters in southern Seoul on Dec. 9. [NEWS1]

Reporters wait outside Coupang’s headquarters in southern Seoul on Dec. 9. [NEWS1]

 
Retailers are rushing to overhaul their membership and rewards programs to attract customers abandoning Coupang after a massive data leak, taking full advantage of what they see as a rare opportunity to reclaim market share.
 
Coupang suffered a massive data breach that exposed the personal information of about 33 million users, including names, phone numbers, emails and delivery addresses. The intrusion went undetected for months until the company discovered it in November and reported it to regulators. 
 

Related Article

 
SSG.com, Shinsegae’s online platform, said on Tuesday that it will launch a new membership program called SSG Seven Club next month, offering a fixed 7 percent rewards rate on grocery purchases. For example, if a customer spends 100,000 won ($68) on groceries through SSG.com, they will earn 7,000 won worth of SSG reward points, or “SSG Money.”


They can then spend their SSG Money on SSG.com, as well as at  Emart, Shinsegae department stores and Starbucks locations operated by the Shinsegae Group.
 
According to SSG.com, its 7 percent rate is currently the highest in the industry. 
 
SSG.com operates same-day or scheduled delivery through Emart and Traders Wholesale Club stores in most regions nationwide. It also offers early morning delivery in many cities, with orders from the previous day arriving by 7 a.m. on the next.
 
A promotional image for SSG.com's membership program [SSG.COM]

A promotional image for SSG.com's membership program [SSG.COM]

 
The company did not disclose the price of SSG Seven Club, but industry sources expect it to be cheaper than Coupang's membership fee. 
 
SSG.com also plans to offer a separate version of the program: a bundle with the streaming service Tving, once the company partners with the platform.
 
“We want customers to get a good deal through [this partnership] with a streaming service,” said Lee Myung-geun, the head of sales at SSG.com. “We are preparing additional benefits to satisfy customers even more.” 
 
Food delivery platforms are also rushing to entice former Coupang Eats users.
 
Yogiyo launched an unlimited rewards program on Monday. Throughout December, regular users can get 1 percent of an order's amount in points; Yogipass X subscribers can receive 5 percent. For instance, if a regular user makes a purchase of 100,000 won, then they would receive 1,000 won worth in points. Customers can use their points immediately on any order.
 
Baedal Minjok will expand its single-serving menu service on Dec. 16 by allowing restaurants to offer discounts without expiration dates. Previously, discounts could only be available for 92 days on single-serving dishes.
 
Coupang Eats, which competed fiercely with Baedal Minjok, continues to lose customers after the data leak disrupted its growth.


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KANG KI-HEON [[email protected]]
Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)