Alibaba Group's Overseas Direct Purchase Platform Holds First Press Conference... Announces Aggressive Marketing
Promotes Diverse Products, Extreme Cost-Effectiveness, and Fast Delivery
Alibaba Group's overseas direct purchase platform AliExpress announced that it will invest 100 billion KRW in the Korean market this year. It plans to conduct large-scale marketing and promotional events, leveraging its ultimate cost-effectiveness and fast delivery services. At the press conference held on the 9th, executives from Naver Shopping, Kakao Pay, and CJ Logistics gathered to show their support.
Ray Zhang, AliExpress Korea representative, held a press conference on the 9th at COEX in Samseong-dong, Seoul, stating, "We plan to invest 100 billion KRW in the Korean market this year." AliExpress, which sells products from over 100 million Chinese sellers to 200 countries worldwide, has been laying the foundation since starting services in Korea in 2018. So far, it has achieved ▲5-day delivery service ▲introduction of easy login and easy payment ▲establishment of a customer center in the metropolitan area.
Representative Ray Zhang said, "Korea is one of the strategically important markets," adding, "We will remove the 'barriers to overseas direct purchase' and provide a better customer experience to gain the trust and love of Korean consumers." He cited Korea's high internet usage rate and the increasing overseas direct purchase consumption centered on the MZ generation as reasons why Korea is an important market.
They selected actor Ma Dong-seok as a promotional model and plan to conduct large-scale marketing starting this month, along with influencer group purchases and discount promotions. Han Song-yi, AliExpress Korea marketing lead, said, "We also plan to invest in gaming and commerce," adding, "Many large projects are prepared for this year."
AliExpress's strength lies in its "ultimate cost-effectiveness." As an opening event, they held a fashion show under the theme of "50,000 KRW Lookbook." The 50,000 KRW Lookbook means that the total cost of the clothes worn by the model is within the 50,000 KRW range. Since the clothes are sourced directly from the production site without distributor margins, it is offered at a low price. This is a point that domestic online shopping malls and e-commerce platforms such as Coupang, TMON, and WEMAKEPRICE need to be wary of.
In this regard, AliExpress introduced the "Taobao Collection (TBC)" targeting the Korean MZ generation. It is a service that allows purchasing various styles of women's clothing at ultra-low prices. Han Song-yi said, "The Taobao Collection is a special service exclusive to the Korean market," adding, "100,000 products are updated daily and delivered free of charge with ultimate cost-effectiveness."
They also revealed a strategy to overcome the limitations of overseas direct purchase platforms with fast delivery and easy payment services. AliExpress started a 5-day free delivery service last year. Han Song-yi said, "Logistics has been the most focused area since the early stages of the business," adding, "Delivery to the doorstep is possible within 5 days, and in the metropolitan area, it can be as fast as within 3 days."
At the event, partners such as CJ Logistics, Naver, and Kakao Pay gathered in one place to support AliExpress's full-scale entry into the Korean market. CJ Logistics has been responsible for AliExpress's Korean delivery since last September. Currently, it delivers over 1 million AliExpress packages per month. Shin Young-soo, head of CJ Logistics' courier e-commerce division, described AliExpress as a "strategic partner with trust and confidence."
Oh Seung-jun, head of Kakao Pay Payment Group, said, "Since starting the easy payment service in July 2020, various collaborations between the two companies have been ongoing," adding, "AliExpress is putting a lot of effort into Korean customers, planning and promoting product lines that meet their needs and improving services."
Kim Jung-woo, head of Naver Shopping Platform, said, "We have maintained a relationship since AliExpress first started its business in Korea," adding, "Through collaboration, AliExpress products can now also be purchased through Naver search." He predicted, "AliExpress, which has tens of millions of cost-effective and high-quality products, is a good partner, and the barriers to overseas direct purchase will continue to lower and users will increase."
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