In recent years, Chinese C-commerce platforms such as AliExpress, Temu, and Shein have been aggressively targeting the global market. These Chinese platform companies’ targeting of the global market has distinct characteristics. It is based on the full support of the Chinese government to solve the problem of oversupply caused by the sluggish domestic demand in China. This is also the reason why each country is concerned about the encroachment of its own distribution industry. These Chinese companies entered the U.S., Europe, and Korea and succeeded in initially entering the market with enormous marketing costs. In particular, it is causing a big stir in Korea, with AliExpress ranking second and Temu ranking fourth in the e-commerce app rankings..
Short Glory, Limitations of C-Commerce
C-commerce companies that seemed poised to encroach on the Korean market at any moment have been struggling recently. Delays in the delivery of products purchased directly from overseas and safety issues with products sold are cited as reasons for this, but the more fundamental reason is that it is impossible to target mainstream consumers with products purchased directly from overseas without handling local products. Recognizing its limitations, AliExpress is also attempting to secure a local distribution network in Korea, including considering the acquisition of Homeplus Express. This shows that the importance of local distribution networks is being highlighted for the sustainable growth of C-commerce. The sense of crisis in C-commerce reminds us of the nightmare of Wal-Mart, which withdrew after suffering a disastrous failure in Korea.
‘Walmart’s nightmare’ from local market
Wal-Mart, which entered Korea in 1998, followed its formula for success in the U.S. market. Wal-mart tried to apply it to the Korean market. However, the result was a miserable failure, and in the end, in 2006, eight years after entering Korea, it announced its complete withdrawal from the Korean market. Wal-Mart’s miserable failure was because it ignored the local market and the sentiments of local consumers and followed its own successful model. The reason C-commerce is nervous is because the prospect that it will follow in the footsteps of Wal-Mart in the Korean market is gaining strength.
Lessons from Walmart and Google – In the case of Romarket and ROMCOIN
Korea is the only market where Walmart and Google failed. Global companies are particularly struggling in the platform and distribution businesses. Korea’s unique emotions and culture create barriers to entry. Even huge global companies such as Walmart and Google cannot succeed without understanding the sentiments of local people. Korea’s unique emotions and consumer culture were a difficult entry barrier for companies growing mainly in the West to overcome. Ultimately, these giant companies failed to localize and were pushed out by Korean companies. This is why you should pay attention to Korea’s local distribution platform RoMarket.
Explosive power of cryptocurrency ROMCOIN
Since its debut on the market in 2019, Romarket has grown into a representative delivery platform for local commercial areas in Korea, recording 300,000 downloads and 100,000 users over the past six years. Romarket secured a local distribution network at a low cost by utilizing existing local mart infrastructure. It also has a platform and business model that can be easily globalized, so it has the potential to expand quickly by combining with overseas local marts.
By using ‘ROMCOIM’, a blockchain-based digital currency that can be used like cash at Romarket, it is possible to make purchases similar to overseas direct purchases, where Korean consumers directly purchase products sold at overseas local marts. In this way, Romarket can grow into a platform that can encompass both local distribution and overseas direct purchase, and the value of ROMCOIN used within the Romarket platform is expected to grow accordingly. Currently, ROMCOIN is actively traded on the global cryptocurrency exchange L-BANK. With GATE.IO and other listings expected in the near future, attention is being paid to the preemptive selling appeal of ROMCOIN, which is about to be listed on major exchanges.
Media Contact
Company Name: Pandotree limited
Contact Person: Taesuh Park
Email: taesuh0926@gmail.com
Country: South Korea
Website: https://romrom.io