Focus on Improving Consumer Satisfaction, Considering Opening Logistics Centers
100 Billion Won Investment Over 3 Years to Eradicate Chronic Counterfeit Issues
Mentioned at October National Assembly Audit to Find Solutions for Counterfeit Eradication
"No Absolute Dominant Company in Korean E-commerce Market... Competition Possible" Judgment
AliExpress has announced that it is considering opening a logistics center locally in Korea. Although the establishment of the logistics center has not been confirmed, it is understood that the company is actively considering setting up a logistics center to enhance consumer satisfaction.
Global online marketplace AliExpress held a press conference on the 6th at Lotte Hotel Seoul to announce the 'Strengthening of Intellectual Property Rights and Consumer Protection.' Ray Jang, CEO of AliExpress Korea, is making the announcement. Photo by Younghan Heo younghan@
Considering Opening a Logistics Center... Strengthening Quality and Delivery Competitiveness
On the 6th, Lei Zhang, the head of AliExpress Korea, attended a press conference held at Lotte Hotel in Jung-gu, Seoul, and said, “We are keeping all possibilities open and reviewing the establishment of a logistics center locally in Korea,” adding, “Customer satisfaction is the top priority for AliExpress.”
AliExpress has shortened the delivery period for direct purchase products, which used to take about 1 to 2 weeks, to within 3 to 5 days starting this year. This was made possible by investing a massive 100 billion KRW to improve the logistics system. Nevertheless, some consumers still complain about delivery delays and other inconveniences.
If AliExpress establishes a logistics center domestically, it will gain advantages not only in price competitiveness but also in a faster delivery system. This is why it is identified as a strong contender to challenge Coupang’s dominance in the domestic e-commerce industry.
Even if a logistics center is established, it is unlikely that AliExpress will handle deliveries independently. Regarding this, Lei Zhang said, “AliExpress only plays the role of a platform and will cooperate with CJ Logistics, which currently handles deliveries,” adding, “We are highly satisfied with the services provided by CJ Logistics and want to continue building a cooperative relationship with them.” CJ Logistics has been exclusively handling AliExpress’s volume since this year. It processed about 3.5 million boxes in the first quarter and over 9 million boxes in the third quarter.
AliExpress has also rolled up its sleeves to tackle the chronic issue of quality. At the press conference, AliExpress announced that it will invest 10 billion KRW to eradicate counterfeit products and strengthen quality. The plan is to introduce the ‘Project Clean’ system to protect the intellectual property rights of consumers and businesses, aiming to catch both price and quality. Measures such as implementing a mystery shopper system and strengthening seller penalties will be applied.
Earlier in October, Lei Zhang faced strong criticism at the National Assembly’s Political Affairs Committee hearing for inadequate quality control, including the blatant sale of National Assembly member badges on AliExpress. In response, Lei Zhang mentioned that a system to resolve these issues is in operation and that continuous efforts will be made to address the problems. On this day, Lei Zhang emphasized, “In the past two months, we have removed 977,151 counterfeit products, and 1,193 stores have been closed due to serious violations,” adding, “This is an issue that cannot be solved by the platform alone, and we will work with Korean stakeholders to protect intellectual property rights.”
Global online marketplace AliExpress held a press conference on the 6th at Lotte Hotel Seoul to announce the 'Strengthening of Intellectual Property Rights and Consumer Protection.' Ray Jang, CEO of AliExpress Korea, is discussing measures to prevent consumer rights violations such as counterfeit and poor-quality sellers. Photo by Younghan Heo younghan@
"The Korean E-commerce Market is Fierce, but Competition is Possible"
Lei Zhang evaluated the Korean e-commerce market as highly competitive but stated that there is no absolute leader. Although Coupang is gaining dominance after turning a profit this year, AliExpress believes that no company currently holds an absolute advantage. It is interpreted that if efforts to improve the delivery system and quality are added to the competitive pricing through a wide range of products and direct shipping from the country of origin, the market situation can be overturned.
Lei Zhang said, “Korean consumers have high standards for product quality, seeking good quality, but if the quality is the same, they tend to prefer lower prices,” adding, “Considering consumer tendencies and AliExpress’s competitiveness, Korea is a market where competition is definitely possible.”
The number of Korean consumers using AliExpress is on the rise. During last month’s Singles’ Day, the number of consumers making direct purchases through AliExpress recorded a triple-digit growth rate. Han Song-i, AliExpress Korea’s Marketing General Manager, said, “Looking at this year’s Singles’ Day results, the first day’s sales performance of last year was achieved in just 33 minutes and 13 seconds, showing high interest,” adding, “In the past, male consumers buying inexpensive electronic products were the majority, but this year, female consumers increased by 386%.”
Meanwhile, Lei Zhang recently dismissed rumors about Alibaba Group’s acquisition of 11st, saying, “We are not considering it,” and added, “We will focus on improving consumer satisfaction with AliExpress.”
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