Competition is fierce! Korean e-commerce platforms are making big moves

With the rise of the Internet, South Korea's e-commerce industry has developed rapidly , and South Korea's online shopping market has grown rapidly . It is estimated that the transaction volume in 2020 and 2021 will reach 160 trillion won and 185 trillion won, respectively.

The competition pattern of South Korea's e-commerce industry has been roughly formed , and major e-commerce platforms are further expanding their market scale and looking for new business strategies . It is reported that the proportion of mobile shopping in online shopping has rapidly increased from 17% in 2013 to 64.4% in 2019 , setting a record of 68.1% in November last year . Experts predict that it will increase to about 73% this year , so now e-commerce companies are keen to develop applications to win.

It is understood that after New World Group launched the comprehensive shopping website SSG.com , it won the favor of a large number of users because it reduced the trouble of buyers installing multiple applications and maximized user convenience .

In addition, Shinsegae Group merged SSG.com and SSG Pay last year to maximize the synergy between the businesses , which not only increased the convenience of payment but also expanded SSG Pay's customer base.

Last year, Lotte Group launched Lotte ON , an enhancement to the artificial intelligence (AI) chatbot launched in 2017 that performs functions such as product recommendations , store information guides, and exchange and return guides. As of December last year , Lotte   ON ranks seventh among major business application users with 1.13 million users.

GS Retail plans to focus on mobile commerce by merging GS Retail's convenience stores , business supermarkets ( SSM) , health and beauty, and GS Home Shopping . GS Home Shopping brings TV shopping to the mobile market , with app users able to watch live broadcasts and ask questions to sellers through live chat.

Timon launched time commerce in 2018 according to the mobile era and began to launch discounted products by time . Based on this strategy, Timon has attracted more loyal customers. App analytics company WiseApp revealed that Tmon ranked fifth in the number of users in shopping trends in December 2020.

On the 14th of last month , Coupang started a trial of "Coupang Live". Compared with other companies, Coupang's live broadcast (Labang) is significantly different , allowing sellers to host the broadcast themselves . It is reported that the live broadcast market is expected to grow to 8 trillion won by 2023 .

Competition among Korean e-commerce platforms is becoming increasingly fierce. Price , service , products , etc. are the main factors of competition. The only way for major platforms to survive is to continuously develop their own advantages and understand that constantly satisfying consumer needs is to do so. Sellers should seize the opportunity and take advantage of the opportunity to gain greater profits on e-commerce platforms.

South Korea

E-commerce

Seller