In a strategic move to tap into South Korea’s booming online fashion sector, Alibaba Group Holding is reportedly eyeing its inaugural investment in the country’s e-commerce landscape
AliExpress, the international online retail arm of Alibaba, is said to be in negotiations to invest approximately US$72.4 million for a 5 percent stake in Ably Corp, the operator of South Korea’s premier women’s shopping application. This move signifies Alibaba’s intention to expand its presence in South Korea, where it competes with local giants like Gmarket and Coupang.
The potential investment in Ably, as reported by The Korea Economic Daily citing sources from the banking sector, marks Alibaba’s proactive approach to stay competitive globally, especially amidst the rising influence of younger rivals like Shein and Temu, a subsidiary of PDD Holdings.
With Ably’s shopping app valued at over US$1.5 billion, it has emerged as a dominant player in South Korea’s online fashion realm. Garnering 8.05 million monthly active users in March, Ably boasts the largest user base among fashion e-commerce platforms in the country, according to data from local mobile intelligence firm Wiseapp. Notably, Ably reported profitability in the previous year, a significant achievement in the fiercely competitive fashion e-commerce landscape.
Both Alibaba and Ably have yet to comment on the reported investment discussions. However, if successful, Alibaba’s investment in Ably could pave the way for a stronger foothold in South Korea’s dynamic e-commerce market, positioning itself against both domestic and international competitors.