Naver partners with Kurly to boost fresh food sales but sees minimal short-term impact

DAISHIN SECURITIES said on the 15th that Naver (NAVER) analyzed that the sales of fresh food, which was a weakness of Naver Store, would increase due to a strategic partnership with Kurly. However, it assessed that the short-term impact would not be significant and maintained a target stock price of 28,000 won with a 'buy' investment opinion.

Researcher Lee Ji-eun from DAISHIN SECURITIES noted, "If Kurly enters Naver Plus Store, it is expected to expand fresh food with early morning delivery, take advantage of Kurly's cold chain logistics infrastructure, and facilitate membership partnerships."

Naver announced on the 18th that it is promoting a business partnership with Kurly. According to consumer data platform Open Survey, Kurly ranks second in early morning delivery services for fresh food, following Coupang. Kurly has a full cold chain system that enables delivery seven days a week, including early morning and same-day delivery.

The partnership between the two corporations is expected to enhance Naver's early morning delivery service for fresh food, which had been identified as a vulnerability, allowing Kurly products to be purchased with only Naver membership without a Kurly membership (1,900 won per month). Naver's traffic among women in their 30s to 50s is expected to become more active, and Kurly is anticipated to expand its distribution channels and user base.

However, Naver's total shopping gross merchandise value (GMV) is 50.3 trillion won, and it was analyzed that there would not be significant fluctuations due to the partnership with Kurly. Kurly's GMV is 3.1 trillion won, and considering Naver Shopping's commission rate of 3-4%, it suggests that there will be no meaningful performance contribution in the short term.

The researcher explained, "However, it is expected that the traffic generated through the enhancement and promotion of Naver's fresh food early morning delivery product line will have a significant effect," adding that it could be a factor in re-evaluating the value of the commerce business.