Chinese e-commerce platforms AliExpress and Temu experienced slower user growth in South Korea last month, while Coupang saw an increase in monthly users despite announcing a monthly fee hike.
According to Wiseapp Retail Goods, an app and retail analytics service, on May 7, the ranking of total mall app users in Korea for April remained the same as in March: Coupang, AliExpress, Temu, and 11Street.
Coupang’s total domestic user base increased by 41,000 (0.13%), from 3.08 million in March to 3.86 million in April.
Last month, starting on the 13th, Coupang raised the monthly membership fee for newly paid members by 58%, from 4,990 won to 7,890 won. The monthly fee for existing members will increase in August. While the fee hike was expected to lead to a decline in membership, current members were unaffected because their fees remained unchanged until July, and they could still shop without a paid membership.
On the other hand, the number of AliExpress users in Korea dropped by 282,000 (-3.2%), from 8.87 million in March to 8.58 million in April. Temu’s user base also decreased by 57,000 (-0.7%), from 8.296 million to 8.238 million during the same period.
AliExpress and Temu have seen a surge in Korean users since the second half of last year as they expanded their sign-up offers and gained popularity for their ultra-cheap overseas direct-purchase items. Temu, which entered the Korean market in July last year, grew its membership to over 2 million in March.
However, industry experts noted that many customers only used AliExpress and Temu once out of curiosity. They warned that maintaining user numbers will be challenging if quality issues, such as the detection of harmful substances, continue to occur.
