AliExpress Aims to Capture Over Half of South Korea’s E-commerce Market in5 Years
Hangzhou, China, September 10,2024 – AliExpress, the global online retail platform owned by Alibaba Group, has set an ambitious goal to attract over half of South Korea’se-commerce users within the next three to five years. This bold statement was made by Ray Zhang, AliExpress’s representative in South Korea, during a mediaroundtable held at the company’s headquarters in Hangzhou.
AliExpress has witnessed rapid growth in the South Korean market since its entry, leveraging its competitive advantage in product variety and pricing. Data from IGAWorks, a South Korean dataservice provider, reveals that AliExpress’s monthly active users (MAU) reached 66.96 million in August, placing it third behind Coupang (31.38 million) and 11st (7.69 million) among South Korea’s e-commerce platforms. With an estimated 34 million e-commerce users in South Korea, AliExpress’s target translates to approximately 17 million users.
The company is actively expanding its presence in South Korea, building upon its core cross-border e-commerceimport (sea-taotao) business. In October 2023, AliExpress launched K-venue, a dedicated platform for Korean products. Furthermore, the company plans to launch a cross-border e-commerce export business within the month. This initiative aims to establish a platform for exporting Korean goods,with a goal of reaching 10 trillion won (approximately 53 billion yuan) in annual sales.
We differentiate ourselves from other Korean online shopping platforms by offering services in over 180 countries and regions worldwide, Zhang emphasized. Our global network will empower Korean small and medium-sized enterprises (SMEs) to tap into overseas markets.
To solidify its position in South Korea, AliExpress recognizes the crucial role of logistics centers. The company has informed the South Korean government of its plan to establish a logistics center within the country. However, the government’s review process has been lengthy, and the project is currentlyin the site selection phase. Zhang expressed optimism, stating that the details are expected to be announced in the first half of next year. AliExpress intends to collaborate with Korean partners to facilitate the logistics center project.
The ambitious goals set by AliExpress reflect the company’s commitment to expanding its reach in the South Korean market.By leveraging its global network, competitive pricing, and a dedicated focus on Korean products, AliExpress aims to become a major player in the country’s e-commerce landscape. The company’s success will depend on its ability to navigate the regulatory landscape, establish robust logistics infrastructure, and cultivate strong partnerships with Korean businesses.
Views: 0