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Chinese Online Markets Making Waves in South Korea’s Fresh Food Sector: How Domestic Companies Are Reacting

Execution time2024-03-09 12:37

[앵커]

The entry of Chinese online markets into our country is not unusual.

When you turn on your smartphone, you see ads everywhere, and now it has risen to the second largest app in the domestic online market.

They are expanding their sales range to include fresh foods, making domestic companies nervous.

This is reporter Seo Hyung-seok.

[기자]

AliExpress Express China has expanded its scope to fresh food in Korea starting this month.

From Daejeo tomatoes from Busan to strawberries from Nonsan to raw oysters and scallops from Tongyeong.

A 40% discount is standard, but it says if you don’t like the price, you’ll get a 100% refund.

Until now, they have been targeting Korean consumers with ‘high-end low-priced’ Chinese industrial products, and have expanded their scope of direct sales and distribution domestically rather than in China.

At the time of opening the domestic delivery service at the end of last year, there were only 5 domestic stores, but the number has increased to dozens in less than half a year due to the ‘0% sales commission’.

One company said there were almost no sales when it opened, but as the number of participating companies increases, the number of consumers searching for domestic products on Ali increases, creating a ‘virtuous circle’.

Due to aggressive expansion, Alli broke the all-time high number of app users in Korea last month and rose to second place among apps in the online market.

<서용구 / 숙명여대 경영학과 교수> “Right now it’s growing faster than Coupang. Coupang is also trembling with fear, but he may give up his position to China Commerce.”

The domestic online market, which has lost its footing, is busy devising self-rescue measures.

The catfish effect happened by offering 100% refunds in case of dissatisfaction with food quality, adding next day delivery products, and reducing sales commissions.

As the penetration of the Chinese online market accelerates into the domestic fresh food sector, which was previously considered an untapped area, the sharing of the pie is expected to become more intense.

This is Seo Hyeong-seok from Yonhap News TV. (codealpha@yna.co.kr)

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#AliExpress #Temu #FreshFood

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