Chinese E-commerce Shaking Things Up in Korea

The Chinese e-commerce companies into Korean market.

 

 

  Hey there! So, I came across this interesting E-commerce company in China called Temu while I was doing some investment research. Not sure what "Temu" means, but one thing's for sure - they've got some crazy cheap prices. I've even included a pic of their website below for you to check out. Most of their stuff doesn't go over 10,000won, which is a steal. 

 

  But here's the kicker - Coupang, the big dog of e-commerce in Korea, is about to face some tough competition from Temu. Even Alibaba, the giant Chinese tech company, too, is dipping its toes into the Korean market. It seems like the Chinese tech giants have hit a growth limit back home, so they're eyeing other markets, and Korea's on their radar. 

 

  Coupang used to rule the roost in the Korean e-commerce game, delivering their stuff directly to customers. But this put a strain on other delivery companies like CJ Logistics, which used to dominate the market. Now, with Temu and Alibaba in the mix, CJ Logistics has decided to handle all their deliveries too. Temu and Alibaba have strong logistics networks in their home turf, but in Korea, they're a bit lacking. So, they basically said, "Hey, could you deliver our stuff to Koreans, just in Korea? We don't have the same network here." 

 

  It's turned into a bit of an e-commerce showdown, and as a shopper, I'm all for it. Competition usually means lower prices for us, so let the battle begin! 

 

 

---

 

Temu is a E-commerce company in China. I found this company when I was reading a report for investment. I do not know what Temu means but I'm pretty sure that they sell products very cheaply. I've posted a pic of the Temu website below. Let's check this out. You can see the prices of most of stuffs are not more expensive than 10,000won. Of course, I've brought some little stuffs that are usually cheap but other big stuffs are also very cheap.  

 

  Here is the big thing - Coupang, the giant e-commerce company in Korea, will face this big challenge from Temu. Even Alibaba, the Chinese giant tech, has began to expand their business in Korea. The Chinese big techs has faced the limit that they would be able to grow up in their country. So, they've thrown their eyes to other markets. One of them is Korea. Coupang has been eating Korean market alone and still number one e-commerce. Even they deliver their stuffs on their own to consumers. But, this made the pre-delivery company struggle with their business. For example, CJ Logistics had taken 70% of the logistics market. But, since coupang's come out to be the competitor, they've been losing their market share. So, CJ Logistics's decided to deliver all stuffs of Temu and Alibaba in Korea. Temu and Alibaba has a lot of logistics networks in their region but not in Korea. So, they were like "Could you deliver our stuffs to Koreans only in Korea? Because we don't have the network as we have in our place". 

 

  I think Coupang thought they would be only one e-commerce in Korea but all of suddlen, Chinese e-commerce came in to their empire. As a shopper, I'd like them to keep fighting against each other to get stuffs for cheap prices.