Significantly Lower Than Coupang and Gmarket in the 130,000 Won Range
Chinese e-commerce platforms AliExpress and Temu are rapidly growing in the Korean market by leveraging ultra-low prices. However, while the number of platform users has increased significantly, the transaction amount per user remains in the lower ranks.
According to WiseApp, Retail, and Goods, app and retail analysis services, the estimated payment amount for AliExpress in the first quarter was 819.6 billion KRW, a 164% increase compared to 310.1 billion KRW in the first quarter of last year. Temu, which entered the Korean market in July last year, recorded an estimated payment amount of 91.1 billion KRW in the first quarter. Monthly payments surged 453% from 1 billion KRW in August last year to 46.3 billion KRW in March.
In terms of estimated payment amounts by domestic companies in the first quarter, Coupang led with 12.7034 trillion KRW, followed by Gmarket (including Auction), an e-commerce platform affiliated with Shinsegae Group, with 3.5548 trillion KRW. The following ranks were 11st Street (2.0631 trillion KRW), Tmon (1.8435 trillion KRW), and Wemakeprice (773.6 billion KRW).
Looking only at estimated payment amounts, AliExpress ranks fourth among comprehensive domestic e-commerce malls, following Coupang, Gmarket, 11st Street, and Tmon, while Temu falls far behind. The estimated payment amounts calculated by WiseApp are statistically estimated values based on credit and debit card transactions, account transfers, and mobile micropayments from a panel of adults aged 20 and over.
Meanwhile, although AliExpress and Temu have succeeded in attracting the attention of many Korean consumers with ultra-low prices, their transaction performance appears relatively weak.
As of the first quarter, the average monthly number of users was 30,265,384 for Coupang, 8,359,696 for Gmarket (including Auction), 8,076,714 for AliExpress, 7,452,003 for 11st Street, 6,604,169 for Temu, 3,671,965 for Tmon, and 3,486,743 for Wemakeprice. AliExpress’s average monthly users in the first quarter of this year increased by 119% compared to 3,684,594 in the first quarter of last year, and Temu’s users grew about 16 times from 520,000 in its entry month of August last year to 8,296,485 last month.
When dividing the estimated payment amount in the first quarter by the number of app users, the estimated payment per user was highest for Tmon at 167,467 KRW, followed by Coupang (139,879 KRW) and Gmarket (including Auction, 137,470 KRW) in second place. Next were 11st Street (92,167 KRW) in fourth and Wemakeprice (73,841 KRW) in fifth. AliExpress recorded 33,622 KRW, and Temu was 4,451 KRW, not even reaching 5,000 KRW.
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