[Distribution Trend] Increased use of Chinese online shopping ‘Aliexpress’

 

*Photo_Aliexpress

China's AliExpress Express is likely to establish a logistics center in Korea... Coupang’s dominance is a ‘threat’

*Source_Yonhap News

As expectations spread that Ali Express, an online direct purchase platform under China's Alibaba Group, will enter the domestic market in earnest by installing a logistics center, attention is focused on whether it will threaten Coupang's dominance in the domestic e-commerce market.

• Last month, the number of Koreans using the Ali app doubled compared to last year.
• Ultra-low price volume offensive… Chronic shortcomings include low quality, counterfeit products, and customer service issues.

Alibaba Group began targeting Korea in earnest while expanding its overseas business.

After entering the Korean market in 2018, AliExpress established a Korea-only customer center in November of last year. This year, it shortened the delivery period for direct purchase products from 1 to 2 weeks to 3 to 5 days, while offering free shipping and free returns for many products. The service was applied. In addition, they used famous Korean actors as models to advertise extensively both online and offline, and also intensively promoted Single's Day (November 11), China's largest shopping festival held this month. CJ Logistics is currently in charge of AliExpress's Korean delivery. Related cargo volume increased 2.6 times from 3.46 million boxes in the first quarter of this year to 9.04 million boxes in the third quarter.

As AliExpress has laid the foundation for targeting the Korean market this year, there is growing speculation that it will operate a logistics center next year and expand its market share.

<Aliexpress event poster>

High growth of Chinese platforms... ‘Watch closely’ for the impact of domestic e-commerce’

*Source_GD Net Korea

Domestic platform competes by enhancing CS, fast delivery, and strengthening brand products

*Source_GD Net Korea

• Ali Express plans to spend 10 billion won to block 'counterfeit goods'...considers logistics centers as well
• Cooperation with CJ Logistics rather than its own logistics network... "If you suspect a counterfeit product, 100% refund even if there is no evidence"

*AliExpress logo and shopping cart image. Source_Yonhap News

AliExpress, “Considering to build a logistics center in Korea next year”

*Source_Logistics Newspaper

AliExpress announced that it is considering building a logistics center in Korea next year to improve Korean customer satisfaction. He also added that the recently reported acquisition of 11th Street is unfounded and that he will focus on providing quality services through AliExpress.

  AliExpress held a press conference to announce strengthening of intellectual property rights and consumer protection at the Lotte Hotel in Seoul on the 6th and promised to introduce the ‘Project Klean’ service and improve customer satisfaction.

 

Record-breaking growth during the November shopping season driven by ‘logistics, prices, and diversity’

Regarding the establishment of a logistics center and self-delivery in Korea due to the increase in AliExpress cargo volume, CEO Ali Jang said, “Ali Express considers improving customer satisfaction as its top priority. We are internally considering building a logistics center in Korea next year as one option. In the case of self-delivery, AliExpress is a platform company and plans to strengthen delivery services through cooperation with local Korean partners rather than building its own delivery network.” In addition, in the case of the return center announced earlier this year, the company added that it began operating the return center in November together with its partners.

 

Continue to protect consumers and businesses by investing ‘KRW 10 billion over 3 years’

AliExpress plans to invest 10 billion won over the next three years to prevent the sale of counterfeit products, which has recently been controversial, and to strengthen the intellectual property rights and customer protection of Korean companies.

In particular, we launched 'Project Klean' to strengthen seller verification, operate customized algorithms for the Korean market, etc. ▲ Preemptive preventive measures ▲ Quality assurance system ▲ 100% refund for counterfeit products without submitting evidence ▲ Legal system support ▲ Understanding Korea We plan to focus our efforts on building governance with the parties.

 

“We will co-exist by helping Korean small and medium-sized businesses find direct products.”

In addition to the direct purchase business, AliExpress hoped to cooperate with more Korean small and medium-sized businesses in the reverse direct purchase business.

Currently, 7,600 Korean brands are selling to 100 million Chinese consumers through Taobao and Tmall within the Alibaba Group. About 1,400 Korean small and medium-sized businesses have signed export contracts through Alibaba.com and are expanding their markets to Japan, Southeast Asia, Europe, and the Americas through AliExpress and Lazada.

‘The number of Koreans using major websites last month increased compared to last year’