The major Korean e-commerce platform Gmarket is making a big push to get back to the top of the country’s online retail market, and it’s getting some serious firepower from a new partnership with the global giant Alibaba.
Gmarket, which has fallen to fifth place in the Korean market, is planning a massive new investment of 700 billion won (about $492 million) for next year alone. The company’s CEO, James Chang, laid out the plan at a press conference, saying the money will be used to support its sellers, develop new artificial intelligence technologies, and run big promotional events to win back customers.
A key part of the new strategy is a joint venture between Gmarket’s parent company, Shinsegae Group, and Alibaba. This partnership will give Gmarket access to Alibaba’s advanced AI technology and its massive global network. “By taking advantage of Alibaba’s AI technologies and Shinsegae’s retail ecosystem, we will be the best e-commerce platform for both sellers and consumers,” Chang said.
The company is also planning a major international expansion. Gmarket is already active in several Southeast Asian countries, powered by Lazada, another Alibaba-owned company. The plan is to eventually expand into South Asia, Europe, and North and South America, focusing on selling popular K-branded products in beauty, fashion, and food.
It’s an ambitious comeback plan, but with the backing of Alibaba, Gmarket is betting it has what it takes to challenge powerful rivals like Coupang and once again become the king of Korean e-commerce.
