China’s low-cost and high-performance artificial intelligence (AI) “Dipsyck” recently shocked the world. Korea is not any exception. Many individuals say, “I did not suppose I’d go this far forward.” Excessive-tech fields similar to semiconductors usually are not the solely downside. In the manufacturing and distribution industries, China’s technological development and market penetration are already an actual disaster.
So-called C-commerce firms similar to Altyxpress (AliExpress, Temu, Shine) have already develop into “buying constants” for home customers. Final month, Ali and Temu’s month-to-month customers reached 9.12 million and 8.23 million, respectively, solidifying their second and third positions after Coupang. Solely two years in the past, the variety of Ali customers was solely 3.35 million, however it has almost tripled its dimension. Home platforms similar to eleventh Avenue, Gmarket, and GS Store have reasonably stepped again.
Altesh’s airstrikes are anticipated to accentuate in the future. Since U.S. President Donald Trump’s inauguration, the U.S. and China have began an financial conflict by imposing 10% tariffs on one another’s imports. Tariffs are utilized to small imports of people underneath $800 with out exception. It’s a clear sign that we’ll not take a look at Ali and Temu solely. It’s predicted that those that have put a brake on their enterprise in the U.S. will naturally make all-out efforts in the Korean market.
It’s not an issue in itself that the Chinese language platform is increasing its enterprise in Korea. You should not even put on coloured glasses about Chinese language firms. Nevertheless, there needs to be a way of disaster in that the distribution business, which is carefully linked to customers, is unilaterally eroded by the growth of neighboring nations. Furthermore, shopper harm similar to detection of dangerous substances and private data leakage is an outdated downside. Authorities authorities haven’t been in a position to give you a pointy answer.
In March final yr, China held its greatest political occasion, the Yanghoe, and unveiled its key duties in 10 areas. Amongst them was the growth of the distribution service business by scientific and technological innovation. Which means China’s present e-commerce offensive was additionally a strategic roll at the nationwide stage, and it was a predicted threat for us. The Korean authorities ought to set up management and squeeze knowledge with the home business. It’ll be part of arms with C-commerce, however home firms ought to renew their competitiveness to forestall extreme market erosion.
Park Hong-joo, reporter for Shopper Market Division