China’s Alibaba Group, which recently announced plans to build a large-scale logistics center in South Korea spanning 180,000 square meters, has now invested 100 billion won ($71.4 million) to acquire a stake in a South Korean fashion shopping platform. This marks Alibaba’s first stake acquisition in a South Korean e-commerce platform. Since entering the South Korean e-commerce market with low-cost Chinese products, Alibaba has expanded its reach by partnering with major corporations like CJ to include K-food and fresh produce. Analysts suggest that the company is now taking steps to dominate the K-fashion market. Earlier, Alibaba revealed plans to invest 1.5 trillion won in South Korea over the next three years.
Able Corporation, which operates the fashion platform Ably, on Dec. 2 said that it secured a 100 billion won investment from Alibaba. This deal reportedly gives Alibaba a 5% stake in the company. Founded in 2018, Ably is a leading online shopping platform specializing in women’s fashion, with 70,000 sellers, the largest in the industry. Its transaction volume is projected to reach 2 trillion won this year, a threefold increase from 700 billion won in 2021. The company also operates a men’s fashion platform, “4910,” and the Japanese fashion site “Amood.”
Experts believe Alibaba’s partnership with Ably aims to expand its e-commerce business in South Korea and boost cross-border sales. Unlike rivals Temu and Shein, Alibaba has a smaller focus on fashion, and this collaboration is seen as a strategic move to fill that gap. The investment is also part of Alibaba’s plan to expand globally, with K-fashion driving that growth. Alibaba reportedly decided to invest in Ably due to its potential to grow both in South Korea and internationally.
