Chinese e-commerce platforms gaining increasing popularity among South Korean consumers

 

Chinese e-commerce platforms are gaining increasing popularity among South Korean consumers thanks to affordable and high-quality products that are delivered rapidly. Experts said the phenomenon reflects close economic and trade ties between the two nations, adding that the South Korean government's siding with the US to contain China is set to incur heavy losses in South Korean economy.

While many South Koreans still use local e-commerce platforms such as Coupang, Navar Shop, and Gmarket, Chinese e-commerce platforms are becoming increasingly popular among South Koreans, and Aliexpress advertisements featuring famous Korean actor Ma Dong-seok can easily be seen in subway stations there, Lee said.

"Some South Koreans even use Ma's photo as Aliexpress profile pictures, as they want Chinese vendors to send parcels faster," she said.

According to data released by Statista, South Korea is one of the biggest online markets in Asia Pacific, with an e-commerce market scale of $118 billion in 2022, or the equivalent of that of the whole Latin American region. In 2022, Chinese goods accounted for 27.9 percent of South Korea's cross-border e-commerce volumes, becoming an important source of South Korean people's overseas online purchases.

A major advantage for Chinese e-commerce platforms and Chinese sellers is that we provide almost all the products that people need in daily life, thanks to comprehensively integrated industrial and supply chains in China," Wang said, noting that made-in-China products such as mobile phone accessories, women clothing, and small household appliances sell well on the platform.

Additionally, South Korean consumers who buy Chinese products can now have their purchases delivered to them within three to five days, which places Chinese e-commerce platforms on a par with their Korean counterparts in terms of logistics, according to Wang.

China and South Korea have developed close and win-win relations thanks to industrial and trade cooperation over the long term, which can be strongly felt amid the global economic slowdown," Li Tianguo, associate professor at the National Institute of International Strategy of the Chinese Academy of Social Sciences, told the Global Times on Sunday.

Although the COVID-19 pandemic, growing protectionism, and the Russia-Ukraine conflict have caused a sharp decline in global trade, trade between China and South Korea exceeded $360 billion in 2021 and 2022, surpassing the total trade between South Korea and the US, Japan, and Europe.

However, during South Korean President Yoon Suk-yeol's visit to the US in April, South Korea and the US signed a series of documents such as the US-ROK joint statement. And, the two sides agreed to enhance alliances on security, economy, technology, culture, and information.

As the Chinese and South Korean economies are highly complementary, South Korea-US tech partnership couldn't replace China-South Korea economic cooperation in the short term, Li said. "China and South Korea are inseparable neighbors and important trade partners

The online shopping craze in South Korea has been ongoing for more than a decade, but in China, online shopping is experiencing tremendous growth, with 64 million additional shoppers per year. Consumers in Asia are among the world's most prolific online shoppers. This study compares the evolution, cycle, and stages of the online shopping markets in South Korea and China. Using the fast-expanding market model as an initial analytical framework and multiple case approach, we find that Chinese online shopping corresponds to the take-off stage of a successful cluster, in which significant opportunities are still present in Chinese Tier 3 and Tier 4 cities. Conversely, the South Korean online market is nearing saturation, though major foreign players are still entering this perceived lucrative marketplace.

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