South Korean retail giant Shinsegae has announced plans to establish a joint venture with Alibaba International, marking a strategic move to strengthen its position in South Korea’s competitive e-commerce market. The joint venture, slated for formation in 2025, will integrate Shinsegae’s e-commerce platform Gmarket with Alibaba’s AliExpress Korea, while maintaining the independent operations of both platforms.
According to a regulatory filing, Shinsegae will contribute its 100% stake in Gmarket to the joint venture. This collaboration comes as Gmarket struggles to compete with South Korea’s dominant e-commerce players, Coupang and Naver, while also fending off increasing pressure from international entrants like AliExpress and Temu.
Alibaba’s recent financial performance reflects broader challenges in its home market. In November, the company reported weaker-than-expected quarterly sales due to a slowdown in consumer spending tied to China’s property crisis and youth unemployment. However, this partnership signals a renewed focus on South Korea, the world’s fourth-largest e-commerce market, according to Euromonitor.
By combining the strengths of Shinsegae and Alibaba, the joint venture aims to revitalize Gmarket’s presence while leveraging AliExpress’s global reach. The collaboration underscores the intensifying competition in the region’s e-commerce sector and highlights the strategic value of alliances to navigate evolving consumer behaviors and economic challenges.
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