[Analysis of China Ali] "Korean Consumers Are Picky... Will Be a Game Changer"

Interview with Rayjang, AliExpress Korea Representative

"Korea is already the world's 5th largest e-commerce market, and there are 15 million overseas direct purchase consumers ranging from their 20s to 50s. AliExpress will be a game changer that breaks down barriers such as delivery consignment, language, payment, and customer service that users have to overcome."

Lei Jang, the head of AliExpress Korea, recently said in an interview with Asia Economy, "We will gain the trust and love of Korean consumers by leveraging the advantage of offering unique and diverse products at attractive prices." He emphasized stable services guaranteed by reasonable prices and '5-day free shipping' compared to the numerous direct purchase agencies and individual businesses in Korea.

Mr. Jang worked at U.S. online electronics shopping malls such as Newegg.com and Eshun.com before joining Alibaba Group in 2016. With over 10 years of experience, he is a seasoned expert in e-commerce and business management and strategy. Recently, he has been focusing on accumulating consumer behavior data in the Korean market, which was established at the end of last year.

Mr. Jang explained, "In Korea, electronics, home appliances, camping, and daily necessities are popular, and especially women's clothing receives high response." He added, "We have created a separate dedicated channel (A.Studio) on the homepage to make it easy to find." He further noted, "During the discount event held in June last year, we confirmed that Korean consumers prefer white coffee machines focusing on 'design' even when purchasing coffee machines. Their expectations for design are higher compared to consumers in other countries."

The biggest concern Korean consumers have about Chinese e-commerce platforms is the so-called 'counterfeit' issue. Mr. Jang introduced, "We participate in the group's intellectual property (IP) rights protection program, which includes technology-based proactive monitoring strategies and multiple cooperative programs such as the Alibaba Anti-Counterfeiting Alliance (AACA)." He also mentioned, "We have formed a partnership with the Korea Intellectual Property Protection Agency (KOIPA) and protect the rights of Korean small and medium-sized enterprises."

Political and diplomatic issues, such as the recently heightened tensions in Korea-China relations, are also obstacles for Chinese companies entering the Korean market. Regarding risk management, he avoided direct comments, saying, "AliExpress is an e-commerce platform. We will focus on providing customers with a more special consumption experience."

Regarding actor Ma Dong-seok, the promotional model who played a key role in AliExpress settling into the Korean market without resistance, he hinted, "His friendly and trustworthy problem-solver image was similar to our brand value."

AliExpress's performance in the early stages is not bad. Although specific sales figures have not been disclosed, looking at app installation numbers, it has received considerable response. According to big data analytics firm Mobile Index, in March, AliExpress (680,000 installs) surpassed 'Danggeun' (590,000 installs), which had consistently topped new installations in the shopping app category, taking first place. However, it is difficult to guarantee whether this enthusiasm and interest will continue long-term. Installation numbers plateaued at 380,000 in April and 390,000 in May after peaking in March.