A woman moves past an Alibaba booth during the China International Supply Chain Expo in Beijing, Nov. 27. AP-Yonhap
Shinsegae Group Chairman Chung Yong-jin / Yonhap
Shinsegae Group announced a strategic partnership with Alibaba International on Thursday to establish a joint venture. This collaboration aims to strengthen their positions in the competitive Korean e-commerce market.
The 50-50 joint venture will include Gmarket and AliExpress Korea as its two subsidiaries. This will allow Gmarket sellers to access a significantly larger customer base through Alibaba's extensive global e-commerce networks, according to Shinsegae.
Additionally, the new partnership means global e-commerce shoppers will have access to a broader range of Korean-made products in an innovatively improved setting, it added.
Shinsegae said the strategic partnership came as the two parties agreed to bolster Gmarket's presence in the global e-commerce market. The goal is achievable by using the global platform of Alibaba International, which will create synergy, improve efficiency, and boost Gmarket's competitiveness in the Korean e-commerce market, it added.
The Korean retail conglomerate expects its partnership with Alibaba International to connect Gmarket sellers with global markets. The Chinese company currently operates e-commerce businesses in 50 countries, with potential consumers across 200 nations. The growth of these sellers will, in turn, strengthen Gmarket's market competitiveness, according to the Korean company.
Shinsegae also said it expects Alibaba International's advanced IT technologies to help elevate Gmarket's technological infrastructure to a global level "instantly."
The Chinese firm has built up data on user experience (UX) and user interface (UI). This will, in turn, enable support for platform sellers and improve the shopping experiences of consumers at Gmarket, Shinsegae added.
Shinsegae said Alibaba International's latest investment in the upcoming joint venture will also encourage further foreign investments in the Korean e-commerce market. According to Shinsegae, Alibaba Group, which is currently listed on the New York Stock Exchange, has experienced the fastest growth among its subsidiaries from Alibaba International. As a result, further investments from Alibaba International are considered feasible, it added.
“With Alibaba International and its stable investments to come, consumer items at Gmarket will have more variety, prices will become more affordable, and shopping on the platform will become more customized and convenient,” Shinsegae said.
“Gmarket has so far built up expertise in quality control and customer service. With Alibaba International's advanced technologies, we can innovatively enhance our customers' experiences.”
An AliExpress official said, following the announcement of the Shinsegae-Alibaba partnership, that Gmarket and AliExpress plan to jointly launch various online shopping experiences for Korean consumers.