Alibaba Focuses On South Korea For International E-Commerce With Best Pricing Tactics

Alibaba Focuses On South Korea For International E-Commerce With Best Pricing Tactics
  • Alibaba Group Holding Limited's BABA international e-commerce business AliExpress doled out $7 million to reach consumers in South Korea, CNBC reports citing an exclusive interview.
  • AliExpress said it launched three-to-five-day shipping to South Korea in 2021, especially in fashion, from Taobao, Alibaba's leading e-commerce site in China.
  • The business unit said it spent 10 billion won in 2022 in South Korea to lower product prices
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  • The company wants to "make sure we have the best pricing," said Gary Topp, European commercial and marketing director at AliExpress.
  • The investment looks to tap a market valued at billions of dollars, currently dominated by the U.S.
  • South Koreans' online purchases from foreign retail sites grew by $1 billion in 2021 to $4.5 billion, with 41% stemming from the U.S., according to the U.S. International Trade Administration's August report.
  • From January to September this year, the number of AliExpress app users among South Koreans increased by 22%, the TDI said.
  • Gross merchandise volume in South Korea rose by 44% in 2021, and the number of buyers grew by 50%, Alibaba VP Zhang Kaifu said.
  • In August 2021, AliExpress was already one of the top five sites most used by South Koreans for buying products directly from overseas sellers, according to the Korea Consumer Agency. The other sites were Amazon.com Inc AMZN, iHerb, EBay Inc EBAY, and Q0010.
  • Price Action: BABA shares are lower by 2.55% at $66.39 premarket on the last check Wednesday.

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