[Alpha Biz= Reporter Kim Jisun] Domestic sales of Chinese online shopping platforms (C-commerce) such as AliExpress and Temu plummeted by over 40% last month due to a controversy over 'carcinogenic substances'.
BC Card announced on the 20th that, based on an analysis of C-commerce payment data for April this year, sales decreased by 40.2% compared to the previous month.
The decline in sales was particularly noticeable in the lower price ranges. Payments under 5,000 won decreased by 55.2% compared to the previous month. Payments between 5,000 and 10,000 won decreased by 42.0%, and payments between 10,000 and 30,000 won decreased by 35.2%, showing a more pronounced aversion to low-cost purchases.
The sharp decline in C-commerce sales appears to be influenced by reports last month of carcinogenic substances found in products purchased from AliExpress and Temu.
On the 7th of last month, Incheon Customs announced that an analysis of the components of accessories sold on AliExpress and Temu revealed that 96 out of 404 products (24%) contained carcinogenic substances exceeding the standard limits.
Similarly, the Seoul Metropolitan Government announced on the 8th of the same month that an investigation of 31 children's products and household items, which were top sellers on AliExpress, found harmful substances exceeding permissible limits in 8 products.
However, despite the decline in C-commerce sales, domestic online shopping malls (K-commerce) did not see an increase in sales. The sales of K-commerce in April decreased by 4.9% compared to the previous month.
In K-commerce, there was also a growing concern about inexpensive products, with payments under 5,000 won decreasing by 28.4%.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
