Week#3: AliExpress, TEMU & SHEIN: fastest-growing apps in Korea | EDA Group HK Listing | NewTechWood Shenzhen GEM Listing
Latest news and analysis on China's global e-sellers.
Hey, since we posted our latest newsletter last week, we have received warm feedback from around the world. Last week in Shenzhen, I was so impressed by a firm which provides goods-return insurance for Chinese sellers. It's the first time I've heard of such a business model, and I'm unsure if such companies exist in other countries. Its founder Bruce is quite confident, stating that their technological solutions and services can effectively reduce return rates, thereby minimizing losses for sellers. This encounter got me thinking about two things.
Firstly, China's cross-border e-commerce scene has evolved into a massive and sophisticated ecosystem, not just in terms of seller numbers and sales figures, but also the expansive service offerings, exemplified by Bruce's firm.
Secondly, in China, especially in Shenzhen, folks are pretty sharp when it comes to sniffing out business opportunities in the cross-border e-commerce realm. They can turn even the most seemingly insignificant chance into a booming venture.
Here’s our pick for last week’s news:
AliExpress increases investment in Middle East and has signed soccer stars as brand ambassadors
AliExpress, TEMU & SHEIN rank as fastest-growing apps in Korea
Government Work Report 2024 says efforts will be made to promote cross-border e-commerce and overseas warehouses
Supply chain solutions provider EDA Group resubmit listing application in Hong Kong
Alibaba Group’s 1688.com denies plans to enter South Korea
Home furnishing seller NewTechWood is listed on Shenzhen’s GEM
Top logistics exec from Alibaba & JD joined SHEIN & TikTok
1. AliExpress increases investment in Middle East and has signed soccer stars as brand ambassadors
In a significant move to bolster its presence in the Middle East market, AliExpress has signed Saudi soccer stars Salem Al-Dawsari and Feras Al Brikan as its regional brand ambassadors. AliExpress's previous collaboration with South Korean actor Ma Dong-seok, further amplifying its global brand reach.
Last year, AliExpress teamed up with Cainiao International to upgrade their logistics services in the Middle East. They also rolled out localized customer support to help merchants tap into the Middle Eastern market. Just one month after launching, AliExpress's order volume in the Middle East increased 40%.
2. AliExpress, TEMU & SHEIN rank as fastest-growing apps in Korea
According to a survey conducted by mobile app analytics service Wiseapp Retail Goods on Wednesday on the most frequently used mobile apps on Android and iOS by Koreans this year, AliExpress had a user increase of 3.71 million in November compared to January. In November alone, 7.07 million users used AliExpress.
Temu ranked as the second fastest-growing app in Korea, with a user increase of 3.54 million during the same period. Temu has been making waves, becoming the most downloaded app in the United States in 2023.
AliExpress and Temu are subsidiaries of China’s leading e-commerce giants Alibaba Group Holding Ltd. and Pinduoduo Holdings Inc., respectively. According to Data.ai, Alibaba International rose to 4th place in global e-commerce platforms concerning the downloads, the only B2B platform among the top four.
3. Government Work Report 2024 says efforts will be made to promote cross-border e-commerce and overseas warehouses
Concerning the major tasks for 2024, the report says the government will keep pursuing higher-standard opening up and promoting mutual benefits. The following are extracts from the original report:
By reinforcing credit services for imports and exports and backing export insurance, we’re smoothing the process of global trade and safeguarding against exchange rate volatility. Our goal is to empower businesses to venture into a wide array of markets. We’re fostering the growth of innovative trade practices, like cross-border e-commerce, and enhancing the efficiency of overseas warehouses.
4. Supply chain solutions provider EDA Group resubmit listing application in Hong Kong
EDA GROUP HOLDINGS LIMITED(EDA Group) is a one-stop end-to-end supply chain solutions provider for e-commerce vendors, empowering the fast-growing B2C export e-commerce industry in China. Currently, EDA Group offer supply chain solutions which encompass cross-border logistics, overseas warehousing and fulfillment delivery services that are seamlessly integrated into EDA Cloud, their self-developed cloud platform which covers a comprehensive range of digital supply management tools.
According to Frost & Sullivan, the B2C export in China’s e-commerce market is expected to grow at a CAGR of 13.4% from 2022 to 2027 and correspondingly, the market size of supply chain solutions with overseas warehouse is expected to grow at a CAGR of 14.5% from 2022 to 2027, reaching ¥348.6 billion ($48.47) in 2027. Also Frost & Sullivan revealed that, in terms of revenue in 2022, EDA Group ranked 7th among all supply chain solutions providers that adopt the overseas warehouse model in China’s B2C export e-commerce.
5. Alibaba Group’s 1688.com denies plans to enter South Korea
China’s largest B2B platform 1688.com denied the rumor that it will open its site in South Korea in February 2024, which has caused a stir in the country's e-commerce industry. Most local sellers on Coupang, G-Market, and 11Street source their products from 1688 and resell them at a markup. If 1688 were to sell directly at wholesale prices, it could deal a significant blow to these South Korean platforms. However, 1688.com claims that it has no plans to expand into the South Korean market and will continue to focus on the domestic Chinese market.
6. Home furnishing seller NewTechWood is listed on Shenzhen’s GEM
On March 4th, NewTechWood made robust debut on Shenzhen Stock Exchange's Growth Enterprise Market, with a total financing of ¥1.07 billion ($139 million).
Specializing in R&D, manufacturing and sales of wood-plastic composites and products, the company offers a range of eco-friendly solutions like outdoor flooring, wall panels, and composite flooring, which are widely used in outdoor spaces such as home courtyards, balconies, public landscapes.
With 95% of its revenue from overseas sales, NewTechWood primarily targets the European and American markets, with the U.S. market alone contributing nearly 40% to its main revenue stream.
7. Top logistics exec from Alibaba & JD joined SHEIN & TikTok
Two top-tier executives have made big waves to SHEIN and TikTok, leveraging their expertise from Cainiao and JD.com. Huang Xing, the former Vice President of JD Group and head of JD Logistics International, joined TikTok Shop at the end of 2023 to oversee cross-border fulfillment operations. Jungen Huang, former head of fulfillment for Cainiao's European region, has joined Shein as their new European fulfillment head.
Shein's shift from relying on third-party logistics to building their own capabilities is aimed at improving delivery certainty. It's possible that they chose Jungen Huang for his management experience at Cainiao in Europe, where Cainiao currently has seven distribution centers and a 100,000 square meter warehouse, achieving 3-day delivery within the country and 7-day delivery across Europe. However, for cross-border e-commerce platforms like Temu, Shein, and TikTok, delivery times are still around 14 days.