First-generation e-commerce firms are in the process of creating synergy with newly acquired companies and finding new business opportunities in the increasingly competitive online shopping market, according to industry officials, Monday.
Southeast Asian e-commerce platform, Qoo10, jointly established by Gmarket founder Ku Young-bae and eBay, acquired TMON last week. Qoo10 owns global distribution centers in 11 countries around the world through its logistics unit Qxpress. The company promised to provide a higher quality of overseas commerce services together with TMON.
Another local e-commerce firm Danawa also combined with Korea Center, an operator of the country's oldest online shopping mall price comparison site Enuri.com, last month. The two companies plan to run their e-commerce platforms separately while establishing an integrated online shopping data analysis system in the long term to further enhance their market competitiveness.
Korea's first online shopping mall Interpark, which was acquired by an online hotel and flight reservation platform Yanolja last year, appointed the former Triple CEO Choi Hwi-young as its new head in August. Triple is a big data-based airline and hotel booking website and Choi plans to utilize his IT service capabilities for Interpark.
Shinsegae has recently introduced a combined membership program for its e-commerce unit SSG.com and Gmarket, which the retail giant purchased last year. Shinsegae is also expanding its online retail business by launching a new overnight delivery service for fresh food.
"The acquisition deals of first-generation e-commerce companies prove that the change of the trend in the local online shopping scene is happening quicker than expected. Their distinguished business strategies will determine their survival in the competition against top rivals that have already occupied the local market," an e-commerce firm official said.