Ahead of Duty-Free Reverse Direct Purchase... Shilla免 Partners with Alibaba Subsidiary to "Directly Target China"

Preparation for Delivery Service to Chinese Market Following July Duty-Free Goods Online Overseas Sales Approval
Targeting 158 Million Chinese Online Direct Purchase Market with Chinese Logistics Platform Cainiao

[Asia Economy Reporter Yuri Kim] Shilla Duty Free is teaming up with Cainiao, a Chinese logistics platform and a subsidiary of Alibaba, to capture 158 million Chinese direct purchase consumers, marking the first collaboration of its kind in the duty-free industry.

Shilla Internet Duty Free announced on the 28th that it signed a business agreement with Cainiao, Alibaba’s logistics platform subsidiary, for the online overseas sales (reverse direct purchase) of Korean products. This move comes as the government allows online overseas sales of duty-free goods starting in July, creating a new overseas sales channel targeting Chinese overseas direct purchase consumers.

With Chinese tourists still facing difficulties visiting Korea, Shilla Duty Free is launching duty-free product sales directly targeting the Chinese market. Shilla Internet Duty Free plans to open a reverse direct purchase overseas sales service for Korean products on a Chinese mall in July. They have prepared about 300 products, mainly popular Korean cosmetics and health supplements favored by foreigners.

Through the agreement with Cainiao, customers purchasing products from Shilla Internet Duty Free’s Chinese mall will be able to conveniently receive Korean products at home. Cainiao will handle all logistics from operations in Korea to delivery within mainland China for Shilla Duty Free products.

Meanwhile, according to Chinese market research firm iiMedia Research, the number of overseas direct purchase consumers in China reached 158 million as of 2020. The market size is expected to continue expanding annually due to factors such as China’s population, increased consumer purchasing power, and growing demand for imported goods.

Cainiao, which declared direct entry into the Korean market in 2020, is Alibaba Group’s logistics affiliate and provides end-to-end logistics and supply chain services, including delivery, warehouse management, international transportation, and customs clearance.

A Shilla Duty Free official said, "We signed an agreement with Cainiao, Alibaba’s logistics company in China, in line with the policy allowing online overseas sales of duty-free goods starting in July. We will establish a perfect duty-free sales system from product purchase to delivery targeting not only domestic customers but also Chinese reverse direct purchase consumers."