C-commerce Surge Threatens South Korea’s Domestic Fashion Platforms
Creatrip Team
3 months ago
Chinese C-commerce platforms — AliExpress, Temu, and Shein — are rapidly gaining South Korean users by offering ultra-low prices, squeezing domestic fashion apps. As of September–October 2024, AliExpress reached about 9.9 million monthly active users (MAUs), nearing leading local app Ably; Temu recorded 8.2 million MAUs, surpassing Zigzag; and Shein grew explosively to about 2.8 million MAUs, overtaking QueenIt with a year-on-year surge of 366%. Combined users of the three platforms now exceed the total users of major local fashion platforms. Cross-border purchases from China are also rising: 2024 Q1–Q3 overseas direct-buy spending topped 6.25 trillion won, surpassing last year’s full-year total, with Chinese purchases making up 66.6% of the market in Q3. Clothing and fashion overseas purchases have grown steadily from 2.64 trillion won (2022) to 3.61 trillion won (2024). Chinese companies are localizing operations by hiring in Korea for legal, content, merchandising, and business roles, signaling a shift beyond simple low-price competition to deeper market integration. Industry experts warn domestic platforms must rethink product planning and seller structures to compete.
