Consumer Attitudes and Online Retail Dynamics in South Korea, 2014-2019

 Published On: Nov, 2015 |    No of Pages: 96 |  Published By: Conlumino | Format: PDF
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Summary

The South Korean internet penetration rate is among the highest in the world with highly responsive online shoppers. Internet retailing in the country is not just restricted to online retail purchases, but consumer preference is now expanding towards mobile retailing using smartphones and social commerce. Smartphone applications are being developed by retailers for consumers to engage in on-the-go shopping, thereby removing time constraints. Furthermore, wider access to credit cards for online payments and high broadband speeds, and penetration will contribute to strong growth in the online channel over the next five years.

Key Findings

• Online retailing has high potential compared to conventional channels, and is expected to grow at a CAGR of 8.8% over the forecast period

• With the proliferation of omnichannel retailing, consumers in South Korea embrace both e-commerce and m-commerce retail channels

• Keeping the demographic structure in mind, online retailers are devising strategies aimed at offering more convenience to elderly population in the country

• Apparel, accessories, luggage and leather goods will continue to lead with a share of 36.4% of the overall online market in 2019, which is also expected to be the fastest-growing category with a CAGR of 12.3% over 2014–2019

Synopsis

“Consumer Attitudes and Online Retail Dynamics in South Korea, 2014–2019” provides data for historic and forecast online retail sales, and also includes information on the business environment and country risk related to the South Korean online retail environment. Key consumer trends influencing South Korea’s online retail industry are also covered.

What else does this report offer?

• In-depth analysis of the latest trends in online consumer shopping, covering the factors driving online shopping, consumer insights, market dynamics (covering 26 product categories), and reviews of the latest best practice in online retail site design

• Market insights based on consumer trends, changing economic and demographic factors, and other macroeconomic factors

• Based on the latest data, the report not only provides details of the size and growth of this increasingly important channel, it also provides essential context on the
penetration of online sales by product groups, how growth has developed over time, and key factors, with forecasts, that will drive this market in the future

Reasons To Buy

• Improve market and strategic planning using highly granular, forward-looking market data across 26 categories under nine product groups that include: Apparel, Accessories, Luggage and Leather Goods, Books, News and Stationery, Electricals and Electronics, Food and Grocery, Health & Beauty, Furniture and Floor Coverings, Home and Garden Products, Music, Video and Entertainment Software, and Sports and Leisure Equipment

• Understand which products will be the major winners and losers in the online arena in the coming years

• Get an in-depth analysis of the latest trends in online retailing in South Korea, covering the factors driving online spending across the categories

• Learn from best practice approaches outlined in the case studies of leading online retailers by examining their unique retailing attitudes and reviewing innovative retailers, which provides insights and ideas to remain competitive and profitable

Table of Contents

1. Introduction
1.1 What is this Report About?
2. Executive Summary
3. Market at a glance
4. Consumer Insight: Online Shopping Attitudes and Behaviors
4.1 South Korea’s Economic Environment
4.2 Overview of South Korea’s Online Shopping Environment
4.2.1 South Korea leads as the world’s fastest in internet connectivity
4.2.2 Broadband infrastructure continues to develop with ongoing urbanization and strong fiscal policies
4.3 Consumer Attitudes and Behaviour
4.3.1 M-commerce is soaring in South Korea, with the rise in smartphone ownership and mobile internet penetration
4.3.2 Retailers adopting omnichannel strategies to provide unique services in order to increase their customer base
4.3.3 Online Clothing and Footwear Sales is on Rise
4.3.4 Social commerce is growing rapidly in South Korea
4.3.5 Online retailers targeting aging population in South Korea
5. Online Channel Dynamics
5.1 The Online Channel’s Share of Total Retail Sales
5.1.1 South Korea online vs. offline channel forecasts
5.1.2 Online penetration: global and regional comparisons
5.2 Channel Dynamics
5.2.1 South Korea retail channel dynamics – future performance
5.2.2 Channel group share development
5.2.3 Individual channel performance
5.3 Category Dynamics
5.3.1 Online vs. offline retail sales comparison by category group, 2014
5.3.2 Online retail market dynamics by category
5.3.3 Online retail sales share by category group
5.3.4 Online retail sales growth by individual category
5.3.5 Food and grocery categories: market size and forecasts
5.3.6 Electrical and Electronics categories: market size and forecasts
5.3.7 Music, video, and entertainment software categories: market size and forecasts
5.3.8 Apparel, Accessories, and Luxury Categories: size and forecasts
5.3.9 Books, News and Stationery categories: Market Size and Forecasts
5.3.10 Sports and Leisure equipment categories: market size and forecasts
5.3.11 Furniture and floor coverings categories: market size and forecasts
5.3.12 Home and Garden categories: market size and forecasts
5.3.13 Health & Beauty categories: market size and forecasts
6. Case Studies: Leading Online Retailers in South Korea
6.1 Retailer 1: Lotte Inc.
6.1.1 Business description
6.1.2 Site experience
6.2 Retailer 2: Interpark INT
6.2.1 Business description
6.2.2 Site experience
6.3 Retailer 3: CJmall.com
6.3.1 Business Description
6.3.2 Site Experience
6.4 Retailer 4: Wemakeprice Inc.
6.4.1 Business Description
6.4.2 Site Experience
6.5 Other Innovative Retailers in South Korea
6.5.1 G-market
6.5.2 Emart
6.5.3 Galleria.co.kr
7. Appendix
7.1 Definitions
7.1.1 This report provides 2014 actual sales; while forecasts are provided for 2015 – 2019
7.2 Summary Methodology
7.2.1 Overview
7.2.2 The triangulated market sizing method
7.2.3 Industry surveys in the creation of retail market data
7.2.4 Quality control and standardized processes
7.3 About Conlumino
7.4 Disclaimer

List of Tables

Table 1: Online Retail Sales in South Korea, 2014 and 2019
Table 2: South Korea Online vs. Offline Retail Sales and Forecast (KRW billion), 2009–2019
Table 3: South Korea Online vs. Offline Retail Sales and Forecast (US$ billion), 2009–2019
Table 4: South Korea Online vs. Offline Retail Sales and Forecast (% Share), 2009–2019
Table 5: South Korea Online Sales vs. Global Average, 2009, 2014 and 2019
Table 6: South Korea Online Sales vs. Asia-Pacific, 2009, 2014 and 2019
Table 7: South Korea Overall Retail Segmentation (KRW billion) by Channel Group, 2009–2019
Table 8: South Korea Channel Retail Sales and Forecast (KRW billion) by Channel Group, 2009–2019
Table 9: South Korea Channel Retail Sales and Forecast (US$ billion) by Channel Group, 2009–2019
Table 10: South Korea Channel Retail Sales and Forecast (% Share) by Channel Group, 2009–2019
Table 11: South Korea Channel Retail Sales and Forecast (KRW billion) by Channel, 2009–2019
Table 12: South Korea Channel Retail Sales and Forecast (US$ billion) by Channel, 2009–2019
Table 13: South Korea Retail Sales Split (KRW billion), Online vs. Offline, 2014
Table 14: South Korea Retail Sales Split (US$ billion), Online vs. Offline, 2014
Table 15: South Korea Online Market Dynamics by Category Group, 2009–2019
Table 16: South Korea Online Retail Sales and Forecast (KRW billion) by Category Group, 2009–2019
Table 17: South Korea Online Retail Sales and Forecast (US$ billion) by Category Group, 2009–2019
Table 18: South Korea Total and Online Retail Sales in Food and Grocery Categories (KRW billion), 2009–2019
Table 19: South Korea Total and Online Retail Sales in Food and Grocery Categories (US$ billion), 2009–2019
Table 20: South Korea Total and Online Retail Sales in Electrical and Electronics Categories (KRW billion), 2009–2019
Table 21: South Korea Total and Online Retail Sales in Electrical and Electronics Categories (US$ billion), 2009–2019
Table 22: South Korea Total and Online Retail Sales in Music, Video and Entertainment Categories (KRW billion), 2009–2019
Table 23: South Korea Total and Online Retail Sales in Music, Video and Entertainment Categories (US$ billion), 2009–2019
Table 24: South Korea Total and Online Retail Sales in Apparel, Accessories, and Luxury Categories (KRW billion), 2009–2019
Table 25: South Korea Total and Online Retail Sales in Apparel, Apparel, Accessories, and Luxury Categories (US$ billion), 2009–2019
Table 26: South Korea Total and Online Retail Sales in Books, News and Stationery Categories (KRW billion), 2009–2019
Table 27: South Korea Total and Online Retail Sales in Books, News and Stationery Categories (US$ billion), 2009–2019
Table 28: South Korea Total and Online Retail Sales in Sports and Leisure Equipment Categories (KRW billion), 2009–2019
Table 29: South Korea Total and Online Retail Sales in Sports and Leisure Equipment Categories (US$ billion), 2009–2019
Table 30: South Korea Total and Online Retail Sales in Furniture and Floor Coverings Categories (KRW billion), 2009–2019
Table 31: South Korea Total and Online Retail Sales in Furniture and Floor Coverings Categories (US$ billion), 2009–2019
Table 32: South Korea Total and Online Retail Sales in Home and Garden Products Categories (KRW billion), 2009–2019
Table 33: South Korea Total and Online Retail Sales in Home and Garden Products Categories (US$ billion), 2009–2019
Table 34: South Korea Total and Online Retail Sales in Health & Beauty Categories (KRW billion), 2009–2019
Table 35: South Korea Total and Online Retail Sales in Health & Beauty Categories (US$ billion), 2009–2019
Table 36: South Korea Exchange Rate KRW–US$ (Annual Average), 2009–2014
Table 37: South Korea Exchange Rate KRW–US$ (Annual Average), 2015–2019 Forecasts
Table 38: Conlumino Retail Channel Definitions
Table 39: Conlumino Retail Category Definitions

List of Figures

Figure 1: Share of Online Retail Sales in Total Retail Sales, 2014 and 2019
Figure 2: South Korea GDP Growth Rate, 2009–2014
Figure 3: Total Internet Users and Penetration, 2009–2014
Figure 4: Total Fixed Broadband Subscribers and Penetration, 2009–2014
Figure 5: Increasing penetration of M-commerce
Figure 6: Retailers Adopting Omnichannel Strategies
Figure 7: Online Retail Sales of Clothing and Footwear in South Korea
Figure 8: Size of Korea’s s-commerce market (2010–2014)
Figure 9: Percentage of the South Korean population aged 65 or older
Figure 10: Regional Fixed Broadband Users and its Penetration, 2012–2017
Figure 11: Regional Mobile Broadband Users and its Penetration, 2012–2017
Figure 12: South Korea and Offline Retail Sales and Forecast (KRW billion), 2009–2019
Figure 13: South Korea Online Sales vs. Global Average (% of Total Retail)
Figure 14: South Korea Online Sales vs. Asia-Pacific Countries Average (% of Total Retail)
Figure 15: South Korea Overall Retail Market Dynamics by Channel Group, 2009–2019
Figure 16: South Korea Retail Sales and Forecast (KRW billion) by Channel Group, 2009–2019
Figure 17: South Korea Retail Sales, Online vs. Offline, 2014
Figure 18: South Korea Online Market Dynamics by Category Group, 2009–2019
Figure 19: South Korea Online Retail Sales and Forecast (KRW billion) by Category Group, 2009–2019
Figure 20: Webpage Layout – Lotte.com
Figure 21: Product view – Lotte.com
Figure 22: Customer review – Lotte.com
Figure 23: Home Page – interpark.com
Figure 24: Product View – interpark.com
Figure 25: Customer reviews – interpark.com
Figure 26: CJmall.com – use of online space
Figure 27: CJmall.com – Power Sale display
Figure 28: CJmall.com – First Look and Olive Young webpage
Figure 29: CJmall.com - Use of Images in Product and Brand Categorization
Figure 30: CJmall.com – Detailed view of a selected product
Figure 31: CJmall.com – Direct links to featured websites (highlighted red rectangle)
Figure 32: CJmall.com – Direct links to featured websites (example Shoedazzle)
Figure 33: CJmall.com – Detailed information on selected products
Figure 34: CJmall.com – Consumer Services
Figure 35: CJmall.com – CJ One membership card
Figure 36: CJmall.com – Customer review
Figure 37: CJmall.com – Mobile Version
Figure 38: wemakeprice.com – Use of online space
Figure 39: wemakeprice.com – Product page
Figure 40: Home Page - Gmarket
Figure 41: Emart Home Page and Flying Store
Figure 42: Flash Sales
Figure 43: The Triangulated Market Sizing Methodology

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