The data, pulled together by research firm Statistics Korea, outlines that year on year in April, e-commerce shopping transactions grew 11.3%; while slower than the previous month’s 20.5%, this still represents and healthy growing appetite for online purchasing.
Cosmetics was the most popular market leading this growth; 32.5% more consumers bought cosmetics in April compared to last year. The rise of mobile retail and inbound tourism were two key factors behind the growth, according to the research firm.
Mobile retail
Mobile retailing is the fastest-growing retail sector globally, forecast to his 30.1% of all online shopping sales in Europe this year, and 36.5% in the US, according to the Centre for Retail Research.
It’s defined as retail where items are purchased by consumers through the use of smartphones, tablets or other mobile devices; but m-retail isn’t limited to just purchases, with customers also taking to their devices to check reviews, prices, alternatives and offers.
Korea appears to be the market at the forefront of m-commerce in Asia; its m-retail market has more than doubled in value every year since 2010 according to McKinsey.
“This enthusiastic adoption has put the country at the vanguard of so-called omnichannel commerce, where physical stores and online shopping are complemented by mobile (m-commerce),” the market insight firm has said.
Risks and opportunities
With consumers enjoying ready access to a wealth of related info, m-retail makes for a retail landscape where brands need to be constantly on the ball; but it also offers brands an enormous opportunity for interactive marketing engagement.
“Technology has driven a huge shift in the way that consumers interact, from making reservations to buying products,” Karen Fuss-Zipp, senior vice president of ecommerce strategy and development at L’Oreal USA, has said of the company’s digital retailing strategy.
“E-commerce is the fastest growing channel in beauty and as an industry, we need to match their experiences in-salon to online to effectively compete and ensure success in the years to come.”