Lazada-linked product listings to quadruple
June transaction volume up 232% from previous month
Service expansion to Europe, Latin America planned as early as this year
Gmarket is pushing hard on its global reverse-purchase strategy, with plans to expand the service into new markets including Europe, Latin America and South Asia, building on results it has achieved in Southeast Asia.
The South Korean e-commerce operator said Sunday it will more than quadruple the number of products linked to Lazada — a Southeast Asian e-commerce platform it partnered with late last year to strengthen reverse-purchase sales — from about 7 million to 30 million.
About 17,000 domestic sellers currently participate in Gmarket's global sales program. Their products reach roughly 160 million consumers across five countries — Malaysia, Vietnam, Singapore, Thailand and the Philippines — through Lazada.
The product expansion follows joint efforts by Gmarket and Lazada to upgrade their global sales integration system. The two companies improved their cross-listing infrastructure and broadened the range of eligible products beyond free-shipping items to include paid-shipping and conditionally free-shipping products.
When an overseas order is placed, Gmarket sellers need only ship the product to Gmarket's logistics center in Incheon. Gmarket and Lazada handle all subsequent international logistics, including shipping and customs clearance.
The results are beginning to show as Gmarket doubles down on its reverse-purchase business in line with the "Global-Local Market (Glocal)" strategy it unveiled as its vision last year.
Gmarket's transaction volume on Lazada jumped 102% in the first half of this year (Jan. 1–June 21) compared with the second half of last year. Over the most recent one-month period (May 22–June 21), transaction volume surged 232 percent from the prior month, sustaining a sharp growth trajectory.
Gmarket-linked products have also drawn strong responses during major discount events.
During Lazada's flagship "Double Day" sale on June 6, Gmarket achieved its highest single-day gross merchandise value since the product integration began, with transaction volume for Korean brand products jumping 246 percent from the prior month. The monthly "Gmarket Day" promotion also posted more than double the usual transaction volume — up 128 percent — at its June event.
Gmarket plans to use the product expansion as a springboard to accelerate its global growth strategy.
As early as the end of this year, the company intends to leverage Alibaba Group's global platform network to extend its reverse-purchase service into new markets including Europe, Latin America and South Asia. The long-term goal is to evolve into a global commerce platform connecting consumers worldwide with domestic Korean sellers.
"We have confirmed the competitiveness of K-products in the Southeast Asian market and have built an environment where more domestic sellers' products can reach local consumers," a Gmarket official said. "We will continue to invest in expanding our global sales infrastructure and strengthening local marketing to further develop the ecosystem for Korean products going overseas."
spa@heraldcorp.com
