Robust Growth in Online Apparel, Footwear and Fashion Products Sales provided Strong Impetus to South Korea E-commerce Market: Ken Research
The fashion accessories are yet to gain popularity in the South Korean market.
Luxurious accessories have been currently used just by a small percentage of people. The online clothing and fashion products market is increasing its popularity with time as new brands establish frequently driven by the quest of people to remain in line with the latest trends and fashions.
The South Korean online market for clothing and fashion products has observed intense competition due to the presence of a large number of players. The leader in the pure play players in the online clothing and fashion products market is Bershka.
The online food and grocery market has been one of highest growing markets in the online retail market of South Korea. There has been a continuous rise in the total gross merchandise value at a high pace.
E-commerce players have been able to offer value deals, high discounts and other offers to lure customers to buy food and grocery products online.
The online food and grocery market in South Korea is expected to grow further at a compound annual growth rate of 11.8%. Hyperlocal deliveries and logistics support by multiple e-commerce logistics companies have increased the opportunities for the retailers to join the online space which will intensify the competition among the major pure-play players such as hello nature, KGC shop and the e-retail chains such as Lotte, Emart.
The market has grown exponentially with better infrastructure relating to internet and smartphone penetration, transport facilities and faster delivery options.
The South Korean online retail market is projected to scale new heights in the coming years owing to a number of factors.
The industry would be majorly driven by increasing demand for clothing, fashion products, electronics and beauty products by a large number of middle aged people in the country. The market will further witness greater demand from tech savvy consumers who long to buy technologically advanced products at high discounts. However, the market is still facing a number of challenges which have the major hindrances in the growth such as the cyber crimes and frauds relating to online payment are a major concern. Additionally, high cost of internet, use of ActiveX and resistance of buyers to spend a high amount via online platform acts as an opposing force for the online retail market in South Korea. The South Korean online retail market is anticipated to grow to USD 47 billion by 2017.
The publication titled “South Korea Online Retail Market Outlook to 2019” is useful for government, industry consultants, online retailers, offline retailers, food and grocery stores, online electronic chains, apparel and footwear manufacturers, other stakeholders and new players venturing in the market.