South Korea Online Retail Market Outlook to 2019 - Driven by Rising Smartphone Penetration and Advent of Social Commerce
October 2015
117
About the Report
About the Report
South Korean shoppers also have a well-built attraction for discounts and promotions. Around ~% of the online shoppers have rated 'flattering price and promotions' as their chief criteria when going for an online purchase in 2014. Most of the people who shopped online use more than one device for shopping over the internet. In 2013, ~% of the online shoppers made purchases using a smartphone.
The South Korea online clothing and fashion products market has emerged as one of the fastest growing markets in the previous few years. During the past five years the industry has grown by a CAGR of 18.6% and amounted to USD ~ million in 2014 in terms of gross merchandise value with ~ million orders in the same year. The companies have offered products at lower prices due to the absence of the operational costs of a physical infrastructure. Thus, the operational cost is significantly lower relative to offline retailers. There have been a number of pure play players and big retail chains dealing in these products. Pure-play players such as Bershka and Yesstyle have been leading the market in terms of unique visitors on their websites. The market is expected to prosper at a projected CAGR of ~% from the year 2014 to 2019. This will make the market to grow by ~ times its current size by the end of 2019.
Online electronics held a significant share of the online retail market with ~% share in 2014 with the gross merchandise value of USD ~ million in the same year. South Korea online electronics retail market has been segmented on the basis of types of products which comprises majorly of two types: computers and computer related appliances and home electric appliances or telecommunication appliances. The scenario of the online consumer electronics market has seen a spurt in the number of online retailers coming up in the recent years. These players consist of both, entrepreneurial ventures as well as corporate conglomerates. This has led to a high growth in the number of firms operating in the market and a higher penetration rate for the buyers of this industry. There has been the competition in the market by both the pure-play retailers in the online space for electronics which only dealt in electronics as well as other multi-product segment retail giants. Pure-play players such as Himart and LG electronics have been leading the market in terms of number of unique visitors. The market is further expected to grow at a CAGR of ~% and reaching the levels of USD ~ million till
2019.
The demand for the beauty products has always been very high, majorly by the working class of the region, especially women and the middle aged people which form 48.7% of population in South Korea. Busy lifestyles of the people have changed the way they purchase beauty products. The online market for beauty products in South Korea has increased at a momentous compound annual growth rate of 22.1%, recording a gross merchandise value of USD ~ million in 2014. South Korea online beauty products market will witness the co-existence of online and offline retail channel for a long time. Offline retailers will leverage the online channel to direct traffic and provide a multi channel experience to consumers. It has been estimated that the online beauty products market in South Korea is perceptible to grow at a promising compound annual growth rate of ~% in the outlook period 2015-2019. The South Korea online beauty products market is anticipated to grow to USD ~ million by 2019
The online food and grocery market has bolstered at a CAGR of 24.5% from 2009 to 2014. The online food and grocery market amassed a gross merchandise value of USD ~ million in 2014. New developments and better infrastructure has also catered to the need of the growing market with better packaging and preservatives to increase the shelf life of the products and quicker delivery across all the regions. The market has also seen a great rise in online food and grocery shopping after the advent of MERS – Middle East Respiratory Syndrome. The aforementioned factors 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 and several others. The online food and grocery market is expected to grow at a CAGR of ~% and reach a gross merchandise value of USD ~ Million The South Korea online retail market faces intense competition with pure-play players and big retail chains competing against each other in the market. eBay is the leader in the online retail industry with ~% share in the market. 11Street, Interpark, Lotte and Emart are some of the other major competitors in the market. The market of online retail in South Korea is projected to scale new heights in the coming years. Technological advancements, internet and mobile diffusion across ages and regions, rising personal disposable income as well as competitive pressures have been significantly changing the market. Gross merchandise value from the online retail industry in South Korea are expected to expand to USD ~ million in 2019, growing with a CAGR of 17.7% from 2015 to 2019.
to growth in the market.
- The market size of the South Korea online retail market
- The market size of the South Korea online clothing and fashion products market
- The market size of the South Korea online books and stationary market
- The market size of the South Korea online electronics market
- The market size of the South Korea online food and grocery market
- The market size of the South Korea online sports music and entertainment market
- The market size of the South Korea online beauty products market
- Market segmentation of South Korea online retail market on the basis of product types and mode of distribution
- Market segmentation of South Korea online clothing and fashion products, books and stationary, electronics, sports music
- and entertainment market on the basis of product types
- Business models of South Korea online retail companies
- Consumer Profiles on the basis of age, gender, modes of payment, seasonal demand, devices used and delivery options
- Trends and Development in the South Korea online retail market
- SWOT analysis of South Korea online retail market
- Entry barriers and pre-requisites to enter the market
- Government rules and regulations
- Snapshot of home shopping
- Mergers and acquisitions and new investments in the market
- Competitive landscape of the major companies in South Korea online retail industry
- Future outlook and projections of South Korea online retail industry with different product lines with Analyst
- Recommendations
Products
Products
Online Retail Industry, Clothing and Fashion Products, Books and Stationary, Electronics, Food and Grocery, Sports, Music and Entertainment, Beauty Products
Companies
eBay, GMarket, eBay Auction, 11 Street, Interpark, Lotte, Emart, GS Home Shopping, CJ O Shopping, Hyundai Home, Shopping, Lotte Home Shopping, Home and Shopping, NS Home Shopping, Fashion Plus, Dahong, Yesstyle.Com, Bershka.Com, Musinsa.Com, Fashionstart.Net, Elf Fashion, Hiphoper.Com, Etude House, Pore Lab, Thefaceshop, Missha, Roseroseshop, Moonshot-Cosmetics.Com, Naturerepublic.Com, Theskinfood.Com, Sokoglam.Com, Kyobo, Yes24, Aladin, Ypbooks.Co.Kr, Bandinlunis.Com, Libro.Co.Kr, Heyeonni.Com, Compuzone, Himart, Icoda, LG Electronics, B-Store.Co.Kr, Lots Etland, Hello Nature, KGC shop, Highstreet, Expatmart.Co.Kr, Fatbag.Co.Kr, Ezshopkorea.Com
Table of Contents
Table of Contents
1. South Korea Online Retail Market Introduction
2. Working Model Prevalent in South Korea Online Retail Market
2.1. Marketplace Model
2.2. Inventory Model
3. Comparative Analysis of Modern Retail with Traditional Retail in South Korea
4. South Korea Online Retail Market Size, 2009-2014
4.1. By Gross Merchandise Value, 2009-2014
4.2. By Number of Orders by Product Type, 2014
4.3. By Average Order Size by Product Type, 2014
5. South Korea Online Retail Market Segmentation
5.1. By Product Type, 2009-2014
5.2. By Mode of Distribution, 2009-2014
6. Consumer Profiles in South Korea Online Retail Market
6.1. By Age, 2013-2014
6.2. By Gender, 2014
6.3. By Mode of Payment, 2014
6.4. By Seasonal Demand, 2014
6.5. By Type of Device Used, 2014
6.6. By Delivery Options, 2014
7. South Korea Online Clothing and Fashion Products Market Introduction
7.1. South Korea Online Clothing and Fashion Products Market Size, 2009-2014
7.1.1. By Gross Merchandise Value, 2009-2014
7.2. South Korea Online Clothing and Fashion Products Market Segmentation by Types of Products, 2014
7.3. Market Share Of Major Pure-play Players in Online Clothing and Fashion Products Market, 2014
7.4. Competitive Landscape of Major Pure-Play Players in South Korea Online Clothing and Fashion Products Market
7.5. South Korea Online Clothing and Fashion Products Market Future Outlook and Projections, 2015-2019
8. South Korea Online Books and Stationary Market Introduction
8.1. South Korea Online Books and Stationary Market Size, 2009-2014
8.1.1. By Gross Merchandise Value, 2009-2014
8.2. South Korea Online Books and Stationary Market Segmentation by Types of Products, 2014
8.3. Market Share Of Major Pure-play Players in Online Books and Stationary Market, 2014
8.4. Competitive Landscape of Major Pure-Play Players in South Korea Online Books and Stationery Market
8.5. South Korea Online Books and Stationary Market Future Outlook and Projections, 2015-2019
9. South Korea Online Electronics Market Introduction
9.1. South Korea Online Electronics Market Size, 2009-2014
9.1.1. By Gross Merchandise Value, 2009-2014
9.2. South Korea Online Electronics market Segmentation by Types of Products, 2014
9.3. Market Share Of Major Pure-play Players in Online Electronics Market, 2014
9.4. Competitive Landscape of Major Pure-Play Players in South Korea Online Electronics Market
9.5. South Korea Online Electronics Market Future Outlook and Projections, 2015-2019
10. South Korea Online Food and Grocery Market Introduction
10.1. South Korea Online Food and Grocery Market Size, 2009-2014
10.1.1. By Gross Merchandise Value, 2009-2014
10.2. Market Share of Major Pure-Play Players in South Korea Online Food and Grocery Retail Market, 2014
10.3. Competitive Landscape of Major Pure-Play Players in South Korea Online Food and Grocery Market
10.4. South Korea Online Food and Grocery Market Future Outlook and Projections, 2015-2019
11. South Korea Online Sports, Music and Entertainment Market Introduction
11.1. South Korea Online Sports, Music and Entertainment Market Size, 2009-2014
11.1.1. By Gross Merchandise Value, 2009-2014
11.2. South Korea Sports, Music and Entertainment market Segmentation by Types of Products, 2014
11.3. South Korea Online Sports, Music and Entertainment Market Future Outlook and Projections, 2015-2019
12. South Korea Online Beauty Products Market Introduction
12.1. South Korea Online Beauty Products Market Size, 2009-2014
12.1.1. By Gross Merchandise Value, 2009-2014
12.2. Market Share of Major Pure-Play Players in South Korea Online Beauty Products Market, 2014
12.3. Competitive Landscape of Major Pure-Play Players in South Korea Online Beauty Products Market
12.4. South Korea Online Beauty Products Market Future Outlook and Projections, 2015-2019
13. Market share of Major Players in South Korea Online Retail Industry, 2014
14. Competitive Landscape of Major Players in South Korea Online Retail Market
15. Snapshot of Home Shopping Market in South Korea
16. Trends and Developments in South Korea Online Retail Industry
Escalating Mobile Commerce
Advent of Social Commerce
Rising O2O Retailing
Upcoming Online Stores for Luxury Brands
Omni Channel Retailing
17. Mergers, Acquisitions and Investments in South Korea Online Retail Industry, 2009-2014
18. Entry Barriers and Prerequisites in South Korea Online Retail Industry
Low Bounce Rate
Discount Policy
Doorstep Delivery
Legal Requirements
19. Government Regulations in South Korea Online Retail Industry
eTrust & isafe
Privacy and Consumer Protection
Security & Certification
E-Payment
20. SWOT Analysis of South Korea Online Retail Industry
21. Growth Drivers of South Korea Online Retail Industry
Technology Affluent Customers
Higher Internet Penetration
Multi-Channel Presence
Convenient Shopping and Higher Discounts
Mobile Shopping
22. South Korea Online Retail Industry Future Outlook and Projections, 2015-2019
22.1. Key Opportunities for the Future
Smartphone and Internet Inducing Online Retail
M-commerce will Drive Online Shopping
Entry of New Players
Growing Trust of Consumers
Rise in Online Payments
Improvement in Logistics
22.2. Analyst Recommendation
For Existing Players in the Market
For New Entrants Planning to Enter the Market
For Government
22.3. Cause and Effect Analysis
23. Macro Economics Variables Affecting South Korea Online Retail Industry
23.1. E commerce Market in South Korea, 2009-2019
23.2. Household Final Consumption Expenditure on Durable goods, 2009-2019
23.3. Personal Disposable Income, 2009-2019
23.4. Digital Buyer Penetration, 2010-2020
23.5. Smartphone Penetration in South Korea, 2009-2019
23.6. Population, 2009-2019
23.7. Gross Domestic Expenditure in Research and Development, 2009-2019
24. Appendix
24.1. Market Definitions
24.2. Abbreviations
24.3. Research Methodology
Data Collection Methods
Approach
Variables (Dependent and Independent)
Multi Factor Based Sensitivity Model
Final Conclusion
24.4. Disclaimer
List of Figure
Figure 1: Marketplace Model for South Korea Online Retail Market
Figure 2: Inventory Model in South Korea Online Retail Market
Figure 3: Comparison of Total Retail Market Size with Online Retail Market Size in South Korea by Gross Merchandise Value
in USD Billion, 2009-2014
Figure 4: South Korea Online Retail Market Size by Gross Merchandise Value in USD Million, 2009-2014
Figure 5: South Korea Online Retail Market Size by Number of Annual Orders by Product Type (Electronics, Clothing and
Fashion Products, Beauty Products, Books and Stationary, Sport, Music and Entertainment, Food and Grocery), in USD, 2014
Figure 6: South Korea Online Retail Market Average Order Size by Product Type, in USD, 2014
Figure 7: South Korea Online Retail Market Segmentation on the Basis of Gross Merchandise Value by Product Type in
Percentage, 2009-2014
Figure 8: South Korea Online Retail Market Segmentation on the Basis of Gross Merchandise Value by Modes of Distribution
in Percentage, 2009-2014
Figure 9: Consumer Profile of South Korea Online Retail Shoppers by Age in Percentage, 2013-2014
Figure 10: Consumer Profile of South Korea Online Retail Shoppers by Gender Category in Percentage, 2013-2014
Figure 11: Consumer Profile of South Korea Online Retail Shoppers by Payment Preferences in Percentage, 2014
Figure 12: Consumer Profile of South Korea Online Retail Shoppers by Seasonal Demand in Percentage, 2014
Figure 13: Consumer Profile of South Korea Online Retail Shoppers by Type of Device Used, in Percentage, 2013-2014
Figure 14: Consumer Profile of South Korea Online Retail Shoppers by Delivery Options Exercised, 2014
Figure 15: South Korea Online Clothing and Fashion Products Market Size, in USD Millions, 2009-2014
Figure 16: South Korea Online Clothing and Fashion Products Market Segmentation by Products on the Basis of Gross
Merchandise Value in Percentage, 2014
Figure 17: South Korea Online Clothing and Fashion Products Market Future Projections by Gross Merchandise Value in USD
Million, 2015-2019
Figure 18: South Korea Online Books and Stationary Market Size by Gross Merchandise Value in USD Million, 2009-2014
Figure 19: South Korea Online Books and Stationary Market Segmentation by Products on the Basis of Gross Merchandise
Value, in Percentage, 2014
Figure 20: South Korea Online Books and Stationery Market Future Projections by Gross Merchandise Value in USD Million,
2015-2019
Figure 21: South Korea Online Electronics Retail Market Size by Gross Merchandise Value in USD Million, 2009-2014
Figure 22: South Korea Online Electronics Retail Market Segmentation by Product Types on the Basis of Gross Merchandise
Value in Percentage, 2014
Figure 23: South Korea Online Electronics Retail Market Future Projections by Gross Merchandise Value in USD Million,
2015-2019
Figure 24: South Korea Online Food and Grocery Retail Market Size by Gross Merchandise Value in USD Million, 2009-2014
Figure 25: South Korea Online Sports, Music and Entertainment Market Future Projections by Gross Merchandise Value in USD
Million, 2015-2019
Figure 26: South Korea Online Sports, Music and Entertainment Retail Market Size by Gross Merchandise Value in USD
Million, 2009-2014
Figure 27: South Korea Online Sports, Music and Entertainment Market Segmentation on the Basis of Gross Merchandise Value
by Product Type in Percentage, 2014
Figure 28: South Korea Online Sports, Music and Entertainment Retail Market Future Projections by Gross Merchandise Value
in USD Million, 2015-2019
Figure 29: South Korea Online Beauty Products Retail Market Size, by Gross Merchandise Value, in USD Million, 2009-2014
Figure 30: South Korea Online Beauty Products Retail Market Future Projections by Gross Merchandise Value in USD Million,
2015-2019
Figure 31: Market Share of Major Players in South Korea Online Retail Market by Number of Products Sold in Percentage,
2014
Figure 32: Competitive Landscape of Major Players in South Korea Online Retail Market
Figure 33: Market share of Major Players in the Home Shopping Market of South Korea by Sales Revenue in Percentage, 2014
Figure 34: Smartphone Penetration in South Korea in Percentage, 2009-2014
Figure 35: Age Structure of South Korea, 2014
Figure 36: Internet Penetration in South Korea, 2009-2014
Figure 37: South Korea Online Retail Market Future Projections on the Basis of Gross Merchandise Value in USD Million,
2015-2019
Figure 38: Projected Performance of South Korea Online Retail Market in Terms of CAGR by Product Categories, 2015-2019
Figure 39: E-Commerce Market in South Korea in USD Billion, 2009-2019
Figure 40: Household Final Consumption Expenditure on Durable goods in USD Million, 2009-2019
Figure 41: Personal Disposable Income of South Korea in USD Billion, 2009-2019
Figure 42: Digital Buyer Penetration in South Korea in Millions, 2009-2019
Figure 43: Smartphone users in South Korea in Million, 2009-2019
Figure 44: Population of South Korea in Million, 2009-2019
Figure 45: Gross Domestic Expenditure in Research and Development in USD Million, 2009-2019
List of Table
Table 1: Comparative Analysis of Traditional Retail and Modern Retail
Table 2: South Korea Online Retail Market Segmentation on the Basis of Gross Merchandise Value by Product Type in USD
Million, 2009-2014
Table 3: South Korea Online Retail Market Segmentation on the Basis of Gross Merchandise Value by Modes of Distribution in
USD Billion, 2009-2014
Table 4: South Korea Online Clothing and Fashion Products Market Segmentation by Products on the Basis of Gross
Merchandise Value in USD Million, 2014
Table 5: Market Share of Major Pure-Play Players in Online Clothing and Fashion Products Market, by Unique Visitors, in
Percentage, 2014
Table 6: Competitive Landscape of Major Pure-play Players in South Korea Online Clothing and Fashion Products Market
Table 7: South Korea Online Books and Stationary Market Segmentation by Products on the Basis of Gross Merchandise Value
in USD Million, 2014
Table 8: Market Share of Major Pure-Play Players in Online Books and Stationery Market, by Unique Visitors, in Percentage,
2014
Table 9: Competitive Landscape of Major Pure-play Players in South Korea Online Books and Stationery Retail market
Table 10: South Korea Online Electronics Retail Market Segmentation by Product Types on the Basis of Gross Merchandise
Value in USD Million, 2014
Table 11: Market Share of Major Pure-Play Players in Online Electronics Market by Unique Visitors, in Percentage, 2014
Table 12: Competitive Landscape of Major Pure-play Players in South Korea Online Electronics Retail market
Table 13: Market Share of Major Pure-Play Players in Online Food and Grocery Market, by Unique Visitors, in Percentage,
2014
Table 14: Competitive Landscape of Major Pure-play Players in South Korea Food and Grocery Retail market
Table 15: South Korea Online Sports, Music and Entertainment Market Segmentation on the Basis of Gross Merchandise Value
by Product Type in USD Million, 2014
Table 16: Market Share of Major Pure-Play Players in Online Beauty Products Market, by Unique Visitors, in Percentage,
2014
Table 17: Competitive Landscape of Major Pure-play Players in South Korea Food and Grocery Retail Market
Table 18: Market share of Major Players in the South Korea Home Shopping Market by Sales Value in USD Billion, 2014
Table 19: Acquisitions in South Korea Online Retail Market, 2009-2014
Table 20: Investments in South Korea Online Retail Market, 2009-2014
Table 21: South Korea Online Retail Market Future Projections on the Basis of Gross Merchandise Value by Product Types in
USD Million, 2009-2014
Table 22: Cause and Effect Relationship Analysis between Industry Factors and South Korea Online Retail Market Prospects
Table 23: Correlation Matrix of South Korea Online Retail Market
Table 24: Regression Coefficients Output of South Korea Online Retail Market
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