AliExpress Aims to Capture Over Half of South Korea’s E-commerce Market in5 Years
Hangzhou, China – AliExpress, the global onlineretail platform owned by Alibaba, has set its sights on dominating the South Korean e-commerce market, aiming to attract over half of its users within the next threeto five years. This ambitious goal was announced by Ray Zhang, AliExpress’s South Korean representative, during a media roundtable held at the company’s Hangzhouheadquarters on September 3rd.
AliExpress has witnessed rapid growth in South Korea since its entry into the market, leveraging its competitive pricing and diverse product offerings. According to data from IGAWorks, a South Korean data service provider,AliExpress recorded 6.69 million monthly active users (MAU) in August, placing it third behind Coupang (31.38 million MAU) and 11street (7.68 million MAU)among South Korea’s leading e-commerce platforms. With an estimated 34 million e-commerce users in South Korea, AliExpress’s target translates to approximately 17 million users.
To solidify its position in the South Korean market, AliExpress is expanding its operations beyond its core cross-border import business.In October 2022, the company launched K-venue, a dedicated section showcasing Korean products. Additionally, AliExpress plans to launch a cross-border export business this month, aiming to boost annual sales of Korean goods to 10 trillion won (approximately 53 billion yuan).
We differentiateourselves from other South Korean online shopping platforms by offering services in over 180 countries and regions, Zhang stated. Our global network will empower Korean small and medium-sized enterprises (SMEs) to tap into overseas markets.
A crucial element in AliExpress’s South Korean expansion strategy is the establishment of alogistics center. The company has informed the South Korean government of its plans to build a logistics facility within the country. However, the government’s review process has been lengthy, and the project is still in the site selection phase. Zhang anticipates announcing concrete details by the first half of next year.
We planto collaborate with South Korean partners to advance the logistics center project, Zhang added.
AliExpress’s ambitious plans to capture a significant share of the South Korean e-commerce market highlight the increasing competition within the global online retail landscape. The company’s focus on cross-border trade and its commitment to supporting Korean SMEscould prove instrumental in achieving its ambitious goals. However, the success of its strategy will hinge on factors such as the timely completion of its logistics center, the effectiveness of its marketing efforts, and the overall economic climate in South Korea.
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