Membership Three Kingdoms

A neologism likening the paid membership competition among retail and platform giants such as Coupang WOW, Naver Plus, and Shinsegae to the Three Kingdoms period.

Membership Three Kingdoms

Overview

Membership Three Kingdoms (Membership 三國志) is a neologism that likens the competition for members among large domestic retail and platform operators—Coupang (쿠팡), Naver (네이버), and Shinsegae (신세계, including E-Mart and SSG.com)—each promoting its own paid membership service, to China's Three Kingdoms period. As subscription-type memberships that bundle various benefits such as free shipping, points, and content for an annual fee have become a core lock-in tool for e-commerce, the "membership hegemony competition" beyond simple price competition has come to determine the industry landscape. Since the mid-2020s, Kurly, Lotte, and 11st have joined this three-strong structure, expanding it into a "fragmented" pattern.

Main Content

Background: The Subscription Economy and the Lock-in Effect

The starting point of the membership competition is the stagnation of e-commerce market growth and rising customer acquisition costs (CAC). As raising the repurchase rate of existing customers rather than acquiring new ones has become more favorable for profitability, the "prime-type" model—offering always-on benefits in exchange for a flat subscription fee—has spread. Membership members have low churn rates because they fear losing benefits upon cancellation, and their purchase frequency and average order value are higher than those of non-members, contributing to revenue stability.

Coupang WOW Membership

Coupang introduced "Coupang WOW Membership" in 2018, bundling free Rocket Delivery, Rocket Fresh, WOW-exclusive discounts, and viewing rights to the OTT service "Coupang Play," setting the standard for Korea's paid membership market. The number of members is estimated in the millions, and a significant portion of Coupang's total sales is known to come from members. Even after several fee increases, churn has remained low, making it a representative example of a "membership moat (垓子)."

Naver Plus Membership

Naver launched "Naver Plus Membership" in 2020, operating a point-accumulation membership covering affiliated services such as Naver Shopping, Naver Pay, Webtoon, and Series On. It is characterized by a strategy of absorbing traffic into its payment and commerce ecosystem by raising shopping point rates, and it is strengthening integration with content, cloud, and AI services.

The Shinsegae·E-Mart Camp

Shinsegae Group attempts differentiation by combining offline assets and online through its integrated membership "Shinsegae Universe Club," which links SSG.com, E-Mart, Starbucks, and Shinsegae Department Store. As the axis of the so-called "offline counterattack," it uses its distribution network, which Coupang and Naver lack, as a weapon.

Aspects of the Competition

The three camps compete head-on over free shipping thresholds, fees, point rates, affiliated cards, and OTT and content benefits. From the consumer's perspective, there is a positive effect of expanding benefits, but "subscription fatigue" from overlapping sign-ups and the burden of fee increases are also growing. In terms of fair trade, issues such as fee increases, benefit reductions, and bundling controversies have also come to the fore.

Latest Trends

In 2024–2025, the membership competition is evolving in three directions. First, price increases are becoming commonplace, with fees rising while benefits are reorganized. Both Coupang and Naver show a trend of adjusting fees while strengthening or adjusting content and delivery benefits. Second, content integration with OTT, music, and webtoons is deepening, spreading "commerce + media" convergence memberships. Third, cases of generative AI features being used as membership added value are increasing as AI services are incorporated as new benefits. Along with this, challenges from latecomers such as Kurly Members, Lotte Universe, and 11st Uzu Pass, as well as partner bundle memberships with telecom and card companies, are expanding, and the "three-strong system" is being reorganized into a multi-player structure. Regulatory discussions on consumer protection and transparency in the subscription economy are also underway.