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[Alpha Biz=(Chicago) Reporter Kim Jisun] CJ CheilJedang, the No. 1 food industry, will virtually break up with Coupang, the No. 1 e-commerce company.
According to Money Today on the 20th, CJ CheilJedang excluded Coupang's delivery sales from next year's business plan. This means that we will create a business structure that can sell major products online and offline without Coupang.
CJ CheilJedang has stopped supplying its products since negotiations with Coupang broke down in November last year. Until the first half of this year, the two companies said they were "in talks" and that there was room for negotiations. However, CJ CheilJedang is less likely to reconcile in the second half of the year as it has achieved growth in sales of processed foods in Korea without Coupang. CJ CheilJedang's sales of processed foods in Korea rose 1.3% to KRW 1.541 trillion in the third quarter, of which Hetbahn increased 14% and cooked frozen foods increased 13%.
Coupang also achieved growth without CJ CheilJedang. Coupang's sales surpassed KRW 8 trillion for the first time in the third quarter of this year. Operating profit is also in the black for five consecutive quarters. Coupang's sales in the third quarter were 8.1028 trillion won, up 18% from a year earlier. Coupang's active customers (customers who bought products at least once a quarter) reached 20.42 million, up 14% from the previous year (17.99 million).
Instead of entering Coupang, CJ CheilJedang strengthened cooperation with other distribution channels such as Naver (arrival guarantee) and E-Mart, while Coupang increased sales of substitutes such as Harim's The Gourmet, Dongwon and Ottogi's Ottogibap. Instant rice sales in Coupang are estimated to have more than doubled this year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
