WeMakePrice to focus on fashion sector for survival

WeMakePrice CEO Park Eun-sang speaks during a press conference held at his office in Seoul in this 2015 file photo. / Korea Times file

By Kim Jae-heun

WeMakePrice (WMP), a local e-commerce firm, is betting big on its fashion section to compete in the fierce online shopping market against Coupang, Naver and eBay Korea.

WMP recently restructured its online shopping division Wonder Shopping to a more cosmetics and fashion centric platform dubbed W Style.

W Style will and sell both domestic and global fashion brands' apparel, accessories and beauty products while offering discount prices on different items each day. Delivery will be free for a limited period.

Previously, WMP not only sold its products on its Wonder Shopping platform but also connected its customers to other shopping websites of local retailers such as Shinsegae and AK Mall where they could make purchases. WMP's plan was to offer people a wider variety of items and it aims to make its platform an online fashion hub.

However, it fell behind in competition against Naver and Coupang and newly emerging players such as SSG.com and Lotte ON which are also threatening its position.

WMP's annual gross sales since 2015 have continuously been growing, increasing from 1.6 trillion won to 6.4 trillion won. But its operating deficit also increased from 29 billion won to 75.7 billion won in the same period.

According to research firm Mobile Index, WMP saw 5.03 million monthly active users (MAU) last month, only a quarter of Coupang's MAU. In addition, WMP currently has no leader as CEO Park Eun-sang has been on leave since June due to deteriorating health.

The e-commerce industry is doubtful that WMP will see a rebound with its new fashion platform. Coupang recently launched its online fashion mall C. Avenue in an effort to expand its business in the sector and the same goes for Naver with its Smart Store and Brand Store. Naver's two concept stores focus on selling various fashion and beauty products.

There are also special young fashion stores including Musinsa, Zigzag, ABLY and Brandi that target specific age groups such as those in their late teens and 20s. The four shopping malls are showing quick growth in the market.

“There are so many competitors in the market already. I don't know how WMP's new platform specializing in fashion and cosmetics will offer a distinguished service to achieve success,” an industry source said.