The Playground for Ajae 'Ali'... Per Capita Payment Amount Jumps 3 Times

AliExpress Users Spent an Average of 100,000 KRW per Person Last Month
Nearly Triple the Amount Compared to Early Last Year
Coupang Recorded the Highest Card Payment Amount at 3.23 Trillion KRW Last Month

Transaction indicators such as card payment transaction amount and per capita payment amount for AliExpress, a Chinese e-commerce (C-commerce) company, have significantly increased. This is interpreted as C-commerce companies making full-scale investments to enter the Korean market last year, attracting domestic consumers.

According to IGAWorks Mobile Index on the 15th, the estimated card payment amount on the AliExpress app in December was about 113.3 billion KRW. This is the ninth highest amount among apps operated by major domestic e-commerce and home shopping companies during the same period. The per capita payment amount for customers using Ali was estimated at 100,000 KRW.

AliExpress logo.

This figure shows a significant increase in per capita payment amount compared to early last year. According to a previous survey by WiseApp, Retail, and Goods, an app and retail analysis service, Ali's estimated per capita payment amount in the first quarter of last year was 33,622 KRW. At that time, the estimated per capita payment amount was calculated by dividing the total estimated payment amount by the number of app users. In just over a year, the per capita payment amount has nearly tripled.

Considering this increase in payment amount, it is estimated that the expansion strategy of C-commerce has been somewhat effective. C-commerce companies, which imported products manufactured locally in China at low prices and sold them domestically, showed low per capita payment amounts due to their ultra-low price strategy. Later, Ali launched K-Venue, a dedicated sales channel for Korean products, allowing domestic sellers to enter Ali and start selling products.

To increase the number of K-Venue entrants, Ali waived entry and payment fees for all entrants until last year, and from February this year, it exempts fees for 90 days for new entrants. Initially, mainly small and medium sellers entered K-Venue, but now major food companies as well as sellers like Samsung Electronics and LG Electronics have joined. The product categories sold have also expanded to an open market level, including daily necessities, fresh food, fashion, beauty, home appliances, and IT.

The number of users has also reached a steady state. According to Mobile Index, Ali's monthly active users (MAU) last month recorded about 7.21 million. This is the third highest among major e-commerce apps during the same period. Ali's MAU, which was below 6 million in early last year, has been around 7 million since the end of last year.

Analysis of Top 10 Online Shopping Sectors by Card Payment Amount in December 2024. Provided by Mobile Index

However, Ali's estimated payment amount in December decreased by 42% compared to the previous month. This is attributed to the effect of the Singles' Day, the largest annual discount event for C-commerce services like Ali and Temu, held in November. Since Singles' Day attracts customers with high discounts, November is generally considered the peak season for C-commerce apps every year. This can be seen as a base effect where customers surged sharply in a short period during Singles' Day.

Among domestic e-commerce apps, Coupang had the highest payment amount. Coupang's estimated card payment amount last month reached 3.23 trillion KRW. This is 8.3 times the amount of Gmarket, which ranked second with about 387.5 billion KRW. Coupang also recorded the highest per capita payment amount of 200,000 KRW among the surveyed companies. Following Coupang were Gmarket (387.5 billion KRW), CJ OnStyle (300.3 billion KRW), 11st (284.5 billion KRW), and GS Shop (281.2 billion KRW).

Meanwhile, Ali was the only major shopping app where the proportion of male consumers was higher than that of females. According to Mobile Index, Ali's gender ratio of payers in December was 71 males to 29 females. Since Ali targets cost-effectiveness and focuses on males in their 20s to 40s as the main target group, it is interpreted that male consumers accounted for a larger proportion. The gender ratios of major e-commerce apps were slightly higher for females: Coupang (44:56), Gmarket (45:55), 11st (44:56). However, home shopping channels such as CJ OnStyle (16:84), GS Shop (18:82), and Hyundai Home Shopping (18:82) had an overwhelmingly higher proportion of female consumers.