Gmarket to spend $75mn on special event to face off Ali, Temu

[Courtesy of Gmarket Corp.]

South Korean e-commerce platform Gmarket Corp. will spend 100 billion won ($75 million) on Big Smile Day, its largest discount event of the year, doubling its expenditure from previous years.

The move is part of the company’s strategy to counter the e-commerce competition from China, such as Ali and Temu.

Under plans announced by Gmarket on Sunday, 70 billion won will be initially allocated to price benefits, including discount coupons. The company plans to increase the budget for discounts by 50 percent from previous Big Smile Day events, totaling 65 billion won, to enhance the competitiveness of product prices.

Furthermore, over 100 billion won will be used to strengthen membership benefits. New members of the membership program Shinsegae Universe Club will enjoy a significant reduction in annual fees, down by 84 percent to 4,900 won.

The event will run from May 7 to 20.