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| WeMakePrice CEO Park Eun-sang speaks during a press conference at his office in Seoul in this 2015 file photo. / Korea times file |
By Kim Jae-heun
Local e-commerce firm WeMakePrice is struggling in the fiercely competitive online retail market amid its CEO Park Eun-sang's almost eight-month absence.
Park has not been coming to the office due to ill health since last June.
The company said it has no plans to appoint a new CEO to replace Park and he will return to his position as soon as he recovers.
Park originally planned to come back in July but his leave of absence has been prolonged and Vice President Ha Song has taken the position of acting CEO.
WeMakePrice has been facing a decline despite its success in attracting investments amounting to 370 billion won from Nexon Korea and local private equity fund IMM Investment in 2019.
The investment saved the company from capital impairment but instead of the firm choosing to improve efficiency after suffering an operating loss of 75.7 billion won the previous year, WeMakePrice decided to expand its business, like Coupang.
However, the two firms saw different results. While Coupang managed to stay in the top two position to lead the market, WeMakePrice halted all its aggressive plans.
When other players hosted 10 billion won discount events at the end of last year during the Korea Sale Festa, WeMakePrice only held a small sale lasting just three days.
Its online mall also abolished paid membership, which other e-commerce firms are striving to use to increase revenue from customers.
WeMakePrice is late in launching an overnight delivery service and enhancing its range of fresh food items.
COVID-19 has increased the demand for fresh food orders online and Market Kurly filled the need at just the right time. Coupang aggressively built its logistic centers in the country to make its delivery service the fastest in the country. But WeMakePrice satisfied neither need.
Its plan to hire 100 merchandisers this year was suspended, too.
WeMakePrice spend some money hiring workers and securing business partners but it is reportedly waiting for the right moment to spend a large sum.
In his latest interview, the CEO said the company originally had plans to make big investments but he delayed this amid fears the investments would be wasted amid the COVID-19 pandemic.
"Instead of joining the fierce competition, we are preparing for the post-COVID-19 era patiently," a WeMakePrice official said.
However, an industry source said WeMakePrice needs to improve its business performance and attract more investments in order to go public this year.
"WeMakePrice's operating loss went up 94 percent in the last year compared to in 2018. It is taking a break now and that's why it has been so passive in its marketing this year," the source said.
