CJ CheilJedang to ship food favorites with AliExpress after Coupang ice-out

Industry

Published: 08 Mar. 2024, 18:49 Updated: 08 Mar. 2024, 19:01

CJ CheilJedang to ship food favorites with AliExpress after Coupang ice-out

The AliExpress app announces the addition of CJ CheilJedang items to its available products. [SCREEN CAPTURE]

CJ CheilJedang has expanded its market reach by partnering with Chinese e-commerce giant AliExpress.

This move follows a cessation of its business dealings with Coupang due to quarrels over supply and prices.

The country's largest food manufacturer started selling some 10 of its popular products, including hetbahn (instant rice), bibigo mandu (dumplings) and kimchi through AliExpress' K-Venue section, specifically designed for Korean branded products, from Thursday afternoon.

"Our food products are shipped directly from our logistics center in Korea, akin to purchasing from our official store," an official from the food company said.

Although currently restricted to domestic orders in Korea, an AliExpress official said the online retailer is planning to extend K-Venue delivery to international customers in the future.

While household goods or processed food names such as LG Household & Health Care and P&G Korea swiftly joined AliExpress since the opening of K-Venue in February, companies dealing with frozen or refrigerated products have delayed their entry, citing supply chain concerns. CJ CheilJedang's move into AliExpress is expected to have a ripple effect for other food companies that have hesitated to explore the Chinese distribution channel.

The partnership with AliExpress follows Coupang's suspension of its super-fast Rocket Delivery service for CJ CheilJedang's products since November 2022 due to disputes over the supply price.

AliExpress is making inroads into the Korean retail market with its ultra-low pricing strategy. As of last month, the AliExpress application registered 8.18 million users in Korea, surpassing 11Street to claim the second spot and as it closes in on the market leader, Coupang, which has 30.1 million users, according to mobile app analysis service provider WiseApp, Retail, and Goods.

"It's natural for manufacturers to seek out new distribution channels, and we expect that doing so will not only foster business growth but also broaden consumer choices," a CJ CheilJedang official said.