International platforms are intensifying their efforts to capture a slice of South Korea’s booming overseas sales sector, particularly in the realm of K-beauty products. (Image courtesy of Yonhap)
SEOUL, Jun. 29 (Korea Bizwire) – In a battle for dominance in the burgeoning cross-border e-commerce market, international platforms are intensifying their efforts to capture a slice of South Korea’s booming overseas sales sector, particularly in the realm of K-beauty products.
Shopee, Southeast Asia’s largest e-commerce platform, announced plans to expand support for Korean products seeking international markets during a press conference celebrating its fifth anniversary in Korea on June 27.
Since its establishment in Singapore in 2015, Shopee has solidified its position as the leading e-commerce platform in Southeast Asia, a market of 600 million people.
The company established a Korean branch in 2019, specializing in facilitating cross-border sales of Korean products to Southeast Asian and Latin American countries.
Korean sellers currently use Shopee to reach customers in eight countries, including Singapore, Taiwan, Vietnam, Thailand, Malaysia, the Philippines, Mexico, and Brazil.
Leveraging its efficient logistics system in Southeast Asia, Shopee aims to broaden the distribution channels for Korean products.
The company also plans to discover and nurture additional Korean beauty brands, which have seen explosive demand growth overseas due to the Korean Wave phenomenon.
Shopee, Southeast Asia’s largest e-commerce platform, announced plans to expand support for Korean products seeking international markets. (Image courtesy of Yonhap)
Not to be outdone, Amazon, the world’s largest e-commerce company, announced on June 26 the launch of “Project K-Beauty Go Big,” a comprehensive support program for small and medium-sized Korean cosmetics manufacturers seeking to enter the global market.
This initiative, developed in collaboration with domestic manufacturers, government agencies, and relevant associations, will provide integrated support from product planning to manufacturing, packaging, branding, and overseas sales.
The move by Amazon to create a seller support program specifically for products from a single country is unprecedented, signaling the company’s recognition of the soaring popularity of Korean cosmetics abroad and its desire to secure capable sellers to meet market demand swiftly.
An industry insider commented, “It’s rare for major e-commerce companies like Shopee and Amazon to announce support measures for Korean sellers just a day apart. It’s a race to see who can secure more sellers faster.”
As global e-commerce giants scramble to increase their market share in Korea’s cross-border sales market, domestic platforms are also rushing to formulate response strategies.
Gmarket further broadened its horizons by integrating with Shoppy, Mongolia’s largest e-commerce platform, to sell Korean products to local consumers. (Image courtesy of Yonhap)
Gmarket is making efforts to enter the Uzbek and Turkish markets, potentially becoming the first Korean e-commerce company to do so if negotiations are successful.
In July 2006, Gmarket made history by launching its English-language store, pioneering South Korea’s entry into the international e-commerce market. By October 2013, the company expanded its reach with a Chinese-language store aimed at customers in China, Taiwan, and Singapore.
In February of this year, Gmarket further broadened its horizons by integrating with Shoppy, Mongolia’s largest e-commerce platform, to sell Korean products to local consumers.
Qoo10, which owns TMON, Wemakeprice, and Interpark Commerce, has been aggressively targeting international markets. In February, the company acquired Wish for 230 billion won and launched a specialized Korean products channel, K-Avenue.
Coupang, Korea’s largest e-commerce platform, is focusing on expanding its Taiwan operations. Since introducing its signature Rocket Delivery service in Taiwan in October 2022, the company has steadily grown its presence.
Coupang, Korea’s largest e-commerce platform, is focusing on expanding its Taiwan operations. (Image courtesy of Yonhap)
In April, Coupang received approval from the Taiwanese government for an additional investment of 255.2 billion won to expand its e-commerce services and build additional logistics centers.
A representative from a domestic e-commerce company stated, “Faced with fierce competition in the Korean online shopping market, companies must break into the cross-border sales market to expand their revenue streams and ensure sustainable survival.”
As the cross-border e-commerce market continues to grow, logistics companies are also eyeing opportunities. CJ Logistics announced last month that it would partner with local logistics firms in the United States and Japan to accelerate its cross-border logistics business.
Ashley Song (ashley@koreabizwire.com)
