AliExpress and Temu, Chinese e-commerce (C-commerce) platforms, have used ultra-low prices to expand their user base, but an analysis indicated their overall market influence is minimal.
According to a report on e-commerce market trends by mobile index firm IGAWORKS on the 26th, the cumulative number of new installations for Temu and AliExpress applications from the beginning of this year until last month was 18.04 million and 6.58 million, respectively. Simple calculations suggest a total of 25.62 million installations between the two apps, meaning half of Koreans have installed the apps.
However, the monthly active user count for the Temu app, as of last month, was 5.82 million, which is less than one-third of the app's cumulative installation count. The monthly active user count for Temu started at 4.59 million in January and peaked at 6.93 million in April before showing a declining trend.
In particular, mobile index reported that the monthly churn rate for Temu users this year reached between 37% and 50%. The monthly churn rate refers to the percentage of users who either delete the app or do not use it in the month following their previous use.
As of last month, the card payment market share for AliExpress and Temu was 3.4% and 0.7%, respectively, which is still minimal. While this represents an increase compared to 1.3% and 0.4% in January, it is not yet comparable to 'K-commerce.'
As of last month, the card payment market share among major online shopping platforms showed that Coupang had the highest at 53.8%, followed by G Market (G마켓) at 7.9%, 11th Street at 7.4%, and SSG.com at 5.1%. Notably, Coupang recorded the highest monthly app user count at 31.59 million and a monthly card payment amount of 3.14 trillion won, showcasing its robust presence.
Compared to January of this year, user numbers increased by 5.2% and payment amounts rose by 12.5%, respectively. Coupang maintained its strong position despite raising membership fees and facing competition from AliExpress and Temu.