Alliance with Alibaba
CJ O Shopping is planning to open a special shopping section in China’s Dongfang CJ (www.OCJ.com.cn) and Tianmao (www.Tmall.hk), an online B2C shop run by Alibaba, to operate its “reverse” direct purchase business in China.
CJ O Shopping is going to display approximately 1,000 popular Korean children’s products, cosmetics, apparel, and health and beauty products at Tmall from this month, and is planning to increase the number of products to 10,000 or so depending on the performance of the venture.
Tmall is currently the largest online shopping mall in China for selling imported goods. Since its debut in February, the sales exceeded 75.8 billion yuan (US$12.4 billion) in the third quarter alone. In the meantime, the imported goods market in China is estimated to grow from 13 trillion won (US$11.8 billion) last year to 27 trillion won (US$24.4 billion) in 2014, 106 trillion won (US$95.7 billion) in 2016, and over 400 trillion won (US$361 billion) in 2018.