Wuyang is showing strength. It is interpreted that this is influenced by the news that Alibaba Group's e-commerce platform AliExpress has started selling fresh food products in Korea.
As of 10:56 AM on the 22nd, Wuyang is trading at 4,545 KRW, up 4.24% compared to the previous day.
According to the industry, Alibaba recently opened a brand pavilion in 'K-Venue,' a Korean product specialty hall. So far, the food companies that have officially listed their names in the brand pavilion within K-Venue are CJ CheilJedang and Namyang Dairy Products.
The industry expects that as Alibaba accelerates its Korean market penetration, domestic food companies will continue to enter the platform for the time being. Dongwon F&B, Samyang Foods, and Sajo Daerim are also expected to join soon. Nongshim, Daesang, and Pulmuone are reportedly considering entry as well.
Since launching K-Venue in October last year, Alibaba has continued its policy of waiving entry and sales commissions, rapidly expanding its product lineup. From a corporate perspective, there is no reason to refuse entry as the platform's user base is rapidly growing recently and there is no commission burden.
The reason domestic food companies are rushing to enter Alibaba is the expectation that Alibaba could surpass Coupang, Korea's number one platform, in a few years. Alibaba Group recently announced plans to invest 1.1 billion USD (approximately 1.4471 trillion KRW) in Korea over the next three years, including the establishment of domestic logistics centers.
Meanwhile, Wuyang is a company that manufactures and exports concentrated marine and agricultural products, canned fruits, similar processed foods, and instant cooked foods. Its major sales channels include manufacturing and distribution companies such as CJ CheilJedang and Pulmuone Foods.
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