ASEAN KEY DESTINATIONS
Online marketplace sales of technica
Laptops, TVs, and refrigerators are highest value generating segments
SEOUL, October 20, 2016 – E-commerce growth rate in the well-connected market of Korea is developing rapidly, with market value of online sales in the technical consumer goods sector growing at an even faster pace than the offline platform. According to GfK’s latest report, consumers in the country bought more than 3 trillion won worth of technical consumer goods off online marketplace retailers in the first eight months of this year—a substantial increment of nearly 9 percent more compared to the same period a year ago.
In comparison, GfK point of sales tracking revealed total sales generated for technical consumer goods from brick and mortar retailers this year growing by 4 percent from last year to reach a total value of over 8.3 trillion won. Online sales in Korea is today represents over a quarter (27%) of the overall consumer spend in this sector.
“The combined online and offline sales of technical consumer goods have contributed to the healthy performance of the sector, which grew 5 percent in value in the past year to reach over13 trillion won,” highlighted Kevin Kang, Commercial Director for GfK in Korea. “It is apparent that consumers are increasingly taking their shopping online as they get more comfortable with acquiring big ticket technology items from etailers instead of physical stores where touch and feel help provide quality assurance and contribute to the overall shopping experience.”
In January to August this year, almost half of all laptops sold (46%) in Korea are being acquired online, making it the highest value segment on accounting for over a-fifth (21%) of the sector’s total sales dollars on this platform. Trailing behind as the second largest segment in value terms is TV, representing 13 percent of total technical consumer goods purchases from the online marketplace. Compared to a year ago, sales value of TV generated from the internet has increased by 5 percent.
Online refrigerator sales in Korea represented 7 percent of the market’s total online sales, ranking it the third highest revenue generator. Consumer spend on this appliance reached over over 217 bilion won—16 percent more than last year.
GfK findings also revealed a rise in the average selling price of online technical consumer goods by 7 percent this year, demonstrating the increasing acceptance of shopping online for more expensive products. Another interesting insight is the fact that the average selling price for the desktop, digital camera and laptop segments are higher online than offline in the 1 to 7 percent range.
“These tech products are actively researched by consumers, and the higher online price trend is an indication that the online space no longer sells only the cheapest, but also mid to high-end products that offer more value for money to the discerning consumers,” Kang noted.
In volume terms, it was the smaller ticket items like data storage, memory cards and USB memory which garnered the most online transactions, representing 11, 10 and 7 percent respectively of total technical consumer goods internet sales quantity.
“The foray of the traditional and reputable retailers such as established hypermarts and departmental stores into the internet shopping space has helped enhanced consumer confidence towards buying online, even for high value items,” explained Kang. “In addition, by joining the online marketplace, major retailers have also helped enhance its credibility and reliability—directly stimulating and boosting online marketplace sales,” he concluded.
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK’s long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers’ experiences and choices.
For more information, please visit www.gfk.com or follow GfK on Twitter: https://twitter.com/GfK
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