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Consumer Attitudes and Online Retail Dynamics in South Korea

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  • 84 Pages
  • Canadean

Description

Product Synopsis

Provides in-depth analysis of the latest trends in online consumer shopping, covering drivers of online shopping, consumer insights, market dynamics (covering 25 product categories) and reviews of the latest best practice in online retail site design- 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 contexts on the penetration of online sales by product groups, how growth has developed over time and key drivers of this market in the future

Introduction and Landscape

Why was the report written?

"Consumer Attitudes and Online Retail Development in South Korea" is the result of Canadean's extensive market research covering the online retail industry in South Korea. It provides the magnitude, growth, share, and dynamics of the online retail market in South Korea. It is an essential tool for companies active across South Korea's online retail value chain and for new companies considering entry into South Korea online retail market. It provides data for historic and forecast online retail sales, and also includes the business environment and country risk related to South Korea online retail environment. By examining best practice from leading national large-scale online retailers (but specifically excluding the likes of Amazon whose sites are well-known and vary little by country), as well as reviewing innovative approaches from smaller companies, the report provides insights and ideas about how best to approach growing online sales for your business.

What is the current market landscape and what is changing?

A unique feature in the South Korean online retail market is the popularity and success of traditional mail-order businesses to adapt to online retail. As a result, companies compete with physical store retailers in markets previously considered incompatible with the online retail format.

What are the key drivers behind recent market changes?

Consumers have been reacting to the effects of the global recession, including the following recovery period, on their discretionary spending and retail markets have been no exception. While the country by country market changes have varied, nowhere has been left totally untouched. This report quantitatively examines the components of change in the market by looking at historic and future growth patterns including how changes in consumer behavior have affected the online retail sector for different product categories.

What makes this report unique and essential to read?

Consumers have been reacting to the effects of the global recession, including the following recovery period, on their discretionary spending and retail markets have been no exception. While the country by country market changes have varied, nowhere has been left totally untouched. This report quantitatively examines the components of change in the market by looking at historic and future growth patterns including how changes in consumer behavior have affected the online retail sector for different product categories.

Key Features and Benefits

Understand consumer behavior and the online trends in South Korea.

Understand which products will be the major winners and losers in the coming years.

Learn from best practice approaches outlined in the case studies of leading online retailers.

Improve market and strategic planning using highly granular, forward-looking market data. Detailed category coverage is provided, covering 25 products, across eight product groups that include: Apparel, Accessories, Luggage and Leather Goods, Books, News and Stationery, Electricals and Electronics, Food and Grocery, Furniture and Floor Coverings, Home and Garden Products, Music, Video and Entertainment Software, and Sports and Leisure Equipment.

Assess the impact of the economic recession and recovery on market growth.

Key Market Issues

Data security and user friendly sites are factors for slow m-commerce growth in South Korea.

The decline in consumer expenditure due to the current economic and market scenario is another reason for slow growth in retail industry.

The decline in consumer expenditure due to the current economic and market scenario is another reason for slow growth in retail industry.

The decline in consumer expenditure due to the current economic and market scenario is another reason for slow growth in retail industry.

The decline in consumer expenditure due to the current economic and market scenario is another reason for slow growth in retail industry.

Key Highlights

The share of online retail sales towards total retail sales increased from 4.5% in 2006 to over 7.1% in 2011, and is expected to increase to 9.7% in 2016.

In terms of online market penetration, Music, video and entertainment software was the leading category, with 35.3% of purchases being made online in 2011.

In terms of online market penetration, Music, video and entertainment software was the leading category, with 35.3% of purchases being made online in 2011.

In terms of online market penetration, Music, video and entertainment software was the leading category, with 35.3% of purchases being made online in 2011.

In terms of online market penetration, Music, video and entertainment software was the leading category, with 35.3% of purchases being made online in 2011.

Table of Contents

1 Introduction

  • 1.1 What is this Report About?
  • 1.2 Definitions
    • 1.2.1 This report provides 2011 actual sales; while forecasts are provided for 2012 - 2016
    • 1.2.2 Changes to terms used in the Canadean taxonomy
  • 1.3 Summary Methodology
    • 1.3.1 Overview
    • 1.3.2 The triangulated market sizing method
    • 1.3.3 Industry surveys in the creation of retail market data
    • 1.3.4 Quality control and standardized processes

2 Consumer Insight: Online Shopping Attitudes and Behaviours

  • 2.1 Overview of the South Korea Online Shopping Environment
    • 2.1.1 Every eight in ten people in South Korea access internet
    • 2.1.2 South Korea has the highest wireless broadband subscribers in the world
    • 2.1.3 More than half of mobile phone users in the country own a smart phone
  • 2.2 Consumer Attitudes and Behavior
    • 2.2.1 Online retail sales to continue to grow in double digit during the forecast period
    • 2.2.2 Music, video and entertainment software has the highest online penetration among the category groups
    • 2.2.3 High speed broadband penetration is on a rise among South Korean consumers
    • 2.2.4 South Korea has highest online sales penetration among Asian countries
    • 2.2.5 M - Commerce activity is on a rise among South Korean consumers
    • 2.2.6 South Koreans prefer credit cards over other modes of payments
    • 2.2.7 High touch products gaining popularity among South Korean consumers

3 Online Channel Dynamics

  • 3.1 The Online Channel's Share of Total Retail Sales
    • 3.1.1 South Korean online vs. offline channel forecasts
    • 3.1.2 Online penetration: global and regional comparisons
  • 3.2 Channel Dynamics
    • 3.2.1 South Korea retail channel dynamics - future performance
    • 3.2.2 Channel group share development
    • 3.2.3 Individual channel performance
  • 3.3 Category Dynamics
    • 3.3.1 Online vs. offline retail sales comparison by category group, 2011
    • 3.3.2 Online retail market dynamics by category
    • 3.3.3 Online retail sales share by category group
    • 3.3.4 Online retail sales growth by individual category
    • 3.3.5 Food and grocery categories: market size and forecasts
    • 3.3.6 Electrical and electronics categories: market size and forecasts
    • 3.3.7 Music, video and entertainment software categories: market size and forecasts
    • 3.3.8 Apparel, accessories, luggage and leather group categories: size and forecasts
    • 3.3.9 Books, news and stationery categories: market size and forecasts
    • 3.3.10 Sports and leisure equipment categories: market size and forecasts
    • 3.3.11 Furniture and floor coverings categories: market size and forecasts
    • 3.3.12 Home and garden categories: market size and forecasts

4 Case Studies: Leading Online Retailers in South Korea

  • 4.1 Retailer 1: Lotte Inc
    • 4.1.1 Business description
    • 4.1.2 Site experience
  • 4.2 Retailer 2: Interpark INT
    • 4.2.1 Business description
    • 4.2.2 Site experience
  • 4.3 Other Innovative Retailers in South Korea
    • 4.3.1 G market
    • 4.3.2 11st.co.kr
    • 4.3.3 Etland.co.kr
    • 4.3.4 Galleria.co.kr

5 Appendix

  • 5.1 About Canadean
  • 5.2 Disclaimer

List of Tables

  • Table 1: South Korea Exchange Rate KRW-US$ (Annual Average), 2006-2011
  • Table 2: Canadean Retail Channel Definitions
  • Table 3: Canadean Retail Category Definitions
  • Table 4: Changes to Canadean Taxonomy
  • Table 5: Canadean Retail Country Coverage
  • Table 6: South Korea Online vs. Offline Retail Sales and Forecast (KRW billion),2006-2016
  • Table 7: South Korea Online vs. Offline Retail Sales and Forecast (US$ billion),2006-2016
  • Table 8: South Korea Online vs. Offline Retail Sales and Forecast (% Share), 2006-2016
  • Table 9: South Korea Online Sales vs. Global Average
  • Table 10: South Korea Online Sales vs. Asia Pacific
  • Table 11: South Korea Overall Retail Segmentation (KRW billion) by Channel Group, 2006-2016
  • Table 12: South Korea Overall Retail Segmentation (KRW billion) by Channel Group, 2006-2016
  • Table 13: South Korea Channel Retail Sales and Forecast (US$ billion) by Channel Group, 2006-2016
  • Table 14: South Korea Channel Retail Sales and Forecast (% Share) by Channel Group, 2006-2016
  • Table 15: South Korea Channel Retail Sales and Forecast (KRW billion) by Channel, 2006-2016
  • Table 16: South Korea Channel Retail Sales and Forecast (US$ billion) by Channel, 2006-2016
  • Table 17: South Korea Channel Retail Sales and Forecast (US$ billion) by Channel, 2006-2016
  • Table 18: South Korea Retail Sales Split (US$ million), Online vs. Offline, 2011
  • Table 19: South Korea Online Retailers Market Dynamics by Category Group, 2006-2016
  • Table 20: South Korea Online Retail Sales and Forecast (KRW billion) by Category Group, 2006-2016
  • Table 21: South Korea Online Retail Sales and Forecast (US$ million) by Category Group, 2006-2016
  • Table 22: South Korea Total and Online Retail Sales in Food and Grocery Categories (KRW billion),2006-2016
  • Table 23: South Korea Total and Online Retail Sales in Food and Grocery Categories (US$ million),2006-2016
  • Table 24: South Korea Total and Online Retail Sales in Electrical and Electronics Categories (KRW billion),2006-2016
  • Table 25: : South Korea Total and Online Retail Sales in Electrical and Electronics Categories (US$ million),2006-2016
  • Table 26: South Korea Total and Online Retail Sales in Music, Video and Entertainment Categories (KRW billion),2006-2016
  • Table 27: South Korea Total and Online Retail Sales in Music, Video and Entertainment Categories (US$ million),2006-2016
  • Table 28: South Korea Total and Online Retail Sales in Apparel, Accessories, and Luggage and Leather Categories (KRW billion),2006-2016
  • Table 29: South Korea Total and Online Retail Sales in Apparel, Accessories, and Luggage and Leather Categories (US$ million),2006-2016
  • Table 30: South Korea Total and Online Retail Sales in Books, News and Stationery Categories (KRW billion),2006-2016
  • Table 31: South Korea Total and Online Retail Sales in Books, News and Stationery Categories (KRW billion),2006-2016
  • Table 32: South Korea Total and Online Retail Sales in Sports and Leisure Equipment Categories (KRW billion),2006-2016
  • Table 33: South Korea Total and Online Retail Sales in Sports and Leisure Equipment Categories (US$ million),2006-2016
  • Table 34: South Korea Total and Online Retail Sales in Furniture and Floor Coverings Categories (KRW billion),2006-2016
  • Table 35: South Korea Total and Online Retail Sales in Furniture and Floor Coverings Categories (US$ million),2006-2016
  • Table 36: South Korea Total and Online Retail Sales in Furniture and Floor Coverings Categories (US$ million),2006-2016
  • Table 37: South Korea Total and Online Retail Sales in Furniture and Floor Coverings Categories (US$ million),2006-2016]

List of Figures

Figure 1: The Triangulated Market Sizing Methodology

Figure 2: Total Internet Users and Penetration, 2006-2011

Figure 3: Total Fixed Broadband Internet Subscribers and Penetration, 2006-2011

Figure 4: Total Mobile Users and Penetration, 2006-2011

Figure 5: South Korea Online Retail Growth vs. Total Retail Growth, 2007-2016

Figure 6: Online Share of Total Category Sales, 2011

Figure 7: Online Sales Penetration, 2011

Figure 8: Smart-phone Activities in South Korea, 2011

Figure 9: South Korea Online and Offline Retail Sales and Forecast (US$ billion), 2006-2016

Figure 10: South Korea Online Sales vs. Global Average (% of Total Retail)

  • Figure 11: South Korea Online Sales vs. Asia Pacific Countries Average (% of Total Retail)

Figure 12: South Korea Overall Retail Market Dynamics by Channel Group, 2006-2016

Figure 13: South Korea Retail Sales and Forecast (KRW billion) by Channel Group, 2006-2016

Figure 14: South Korea Retail Sales, Online vs. Offline, 2011

Figure 15: South Korea Online Retailers Market Dynamics by Category Group, 2006-2016

Figure 16: South Korea Online Retail Sales and Forecast (US$ million) by Category Group, 2006-2016

Figure 17: Page Layout

Figure 18: Product View

Figure 19: Product View

Figure 20: Site - Homepage

Figure 21: Site - Product View

Figure 22: Mobile Apps

Figure 23: Daily Deal Page

Figure 24: Site Filter

Figure 25: Flash Sales

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