Chinese e-commerce giants achieved an annual revenue growth rate of 41%

A recent report by the Korea Economic Research Institute (KERI) has unveiled the competitive dynamics in the global e-commerce sector.

The report identifies Amazon (USA), JD.com (China), Alibaba (China), Pinduoduo (China), and Coupang (South Korea) as the top five e-commerce companies by revenue.

Notably, Chinese e-commerce giants JD.com, Alibaba, and Pinduoduo (the parent company of Temu) have achieved an astounding average annual revenue growth rate of 41.0%, securing three spots among the global top five in e-commerce revenue rankings.

KERI’s analysis highlights a significant shift in the e-commerce landscape, marked by AliExpress’s entry into the South Korean market in 2018. At that time, the global e-commerce market was valued at $2.9 trillion. Within a few short years, the market has nearly doubled in size, reaching a staggering $5.8 trillion, driven by the rapid growth and increasing influence of online shopping worldwide.

Competitive Dynamics in South Korea

In South Korea, Coupang has maintained its dominant position as the leading e-commerce platform, based on monthly user numbers.

Following Coupang are 11st, Gmarket, and Tmon, with AliExpress ranking fifth. However, the competitive landscape experienced a significant shakeup with the powerful entry of Temu into the South Korean market in July last year.

In less than a year, Temu has surged to fourth place, pushing Gmarket to fifth. The current rankings of e-commerce platforms in South Korea are as follows: Coupang leads, followed by AliExpress, 11st, Temu, and Gmarket.

This shift not only demonstrates Temu’s strong presence in the South Korean market but also signals new trends in the global e-commerce competition.

Implications for the Future

The rapid growth of Chinese e-commerce companies in global rankings highlights their competitive edge and strategic expansions into new markets. The dynamic changes in South Korea’s e-commerce rankings further illustrate the evolving nature of the market, with new entrants capable of quickly altering the competitive balance.

As global e-commerce continues to grow, companies will need to innovate and adapt to maintain their positions and capitalize on emerging opportunities. The developments in South Korea serve as a microcosm of the broader trends shaping the future of global e-commerce.