Global Information Inc. would like to present a new market research report, "Consumer Attitudes and Online Retail Dynamics in South Korea" by Canadean.
South Korea is ranked as the seventh largest exporter in the world and more than half of the countrys GDP is export driven. The South Korean retail industry is one of the largest markets among the Asian countries; however, the global economic situation has had an effect on South Korean economy. The slow recovery of the US economy and the Eurozone debt crisis has put additional pressure on the countrys economy and GDP growth. The central bank of Korea has projected GDP growth for 2012 to hover around 2.5%, based on the current economic scenario. Consumers are also becoming cautious while shopping and are looking out for better deals and offers given by the retailers. The government has taken steps to increase consumer spending, and one of the steps involves reducing the policy interest rates and providing stimulus in the form of financial packages to rejuvenate the economy of the country.
The retail sector is expected to grow at a steady pace and Canadean expects total retail sales in the country to touch US$290.2 billion by 2016, growing at a CAGR of 5.16% during the forecast period. South Korea has the highest internet penetration rate in the world and a dynamic communication services industry, which accounts for its status as one of Asias fastest-growing online retail markets.
According to Korean National Statistics, the average monthly consumption expenditure in South Korea rose by 4.3%. Koreans spend, on average, 40.5% of their monthly income on the consumptions of goods and this high disposable income has stimulated the growth of the South Korean online retail market. The convenient mode of online shopping offers better deals for a wide range of products including flexible modes of payment, which attract consumers to shop over the internet. Furthermore, high internet penetration and availability of high-speed mobile broadband are other driving factors behind the growth of online retailing in the country. Canadean expects online retail sales in South Korea to grow at a CAGR of 11.76% during the forecast period.