Image credits - Kr Asia
China’s e-commerce giants, Alibaba Group Holding’s AliExpress and PDD-owned Temu, are experiencing robust growth in South Korea. However, despite their popularity, they are confronting challenges related to long delivery times and product quality assurance, according to consumers and retail industry officials.
AliExpress, launched in South Korea in 2018, has seen its monthly active users surpass 7 million as of last November, nearly doubling the numbers recorded a year earlier. Temu, which entered the Korean market in July, averages 3.5 million users per month, earning both platforms the distinction of being the fastest-growing apps in Korea in 2023.
The aggressive expansion of these Chinese e-commerce giants has been marked by competitive pricing, with some products offered for as low as US$1 on AliExpress and Temu. However, a significant number of Korean consumers remain cautious about fully embracing these platforms due to supply chain challenges that include lengthy delivery times and concerns about unstable product quality.
Lawrence Woo, a 38-year-old office worker in Seoul, began using AliExpress a year ago, attracted by the platform’s low prices. Woo found a laptop stand on AliExpress that was 50% cheaper than those offered by local retail sites. However, he expressed confusion and frustration regarding the extended delivery times, citing an instance where it took two months for AliExpress to deliver a smartphone camera protector film ordered last autumn.
“The delivery time is too long. I tried to cancel the order, but the customer service was not working,” said Woo.
On Temu, product shipping times reportedly range from six to 20 days, according to the Chinese budget shopping app’s website.
While Chinese e-commerce platforms continue to gain traction in South Korea, the issues related to supply chain management may pose a barrier to fully replacing local online retail sites like Coupang and Gmarket. As consumer expectations evolve, addressing these challenges will be crucial for Alibaba’s AliExpress and PDD’s Temu to solidify their positions in the South Korean market.
The competition in South Korea’s e-commerce landscape is intensifying, with consumers prioritizing not only competitive pricing but also fast and reliable delivery services and high product quality. As Alibaba and PDD continue their expansion efforts, addressing these concerns will be essential for building trust among Korean consumers.