📊 Targeting Half the Market
In a bold move, AliExpress is aiming to capture more than half of South Korea's e-commerce market by 2028. CEO Ray Zhang announced plans to attract 17M users over the next 3-5 years. This is a significant jump from their current 6.69M monthly active users, which places them third behind Coupang’s 13.38M and 11Street’s 7.68M. Zhang outlined this strategy at a press conference in Hangzhou on September 3, 2024. South Korea's 34M e-commerce users make it a lucrative market, and AliExpress is investing heavily to make this goal a reality.
🚀 Major Investments Ahead
To achieve this, AliExpress is ramping up marketing campaigns and preparing to build a cutting-edge logistics center in South Korea. "We will join hands with a Korean company to build the logistics center equipped with advanced smart technologies," Zhang revealed. Details on the center are expected in early 2025. With this new facility, AliExpress hopes to streamline operations and deliver more efficiently, improving customer experience in the region.
🛒 Aggressive Product Push
AliExpress has been promoting around 150M products at competitive prices to win over South Korean shoppers. Since launching in Korea, they’ve focused on providing variety and affordability, both crucial in gaining market share. In October 2024, the company launched the K-Venue marketplace, allowing local firms to sell products commission-free until December. This move aims to encourage "mutual growth" and attract more small and medium-sized businesses onto the platform, further expanding its reach.
⚔️ Competing with Local Giants
AliExpress isn’t the only Chinese company making moves in Korea. PDD Holdings' Temu has also been active in the space. Both companies aim to chip away at Coupang’s dominance, using aggressive marketing strategies to attract more users. Temu and AliExpress have benefited from consumers seeking alternatives to established local players. The competition in Korea's e-commerce scene is intensifying, but with the right investments and product offerings, AliExpress is positioning itself to become a major player.
Can AliExpress overtake Coupang in South Korea’s e-commerce?
