Xin Ou
Research expert covering Greater China
Shopping behavior in South Korea - statistics & facts
In the South Korean retailing landscape chain-stores like hypermarkets and department stores co-exist alongside traditional and independent markets. However, online shopping has become more and more prominent, pushing in-store shopping to the sidelines.
South Koreans are active participants in the domestic economy and retail sales have continuously grown over the last years. Due to the rising prices, consumers felt the burden in their daily lives and shoppers were more careful with their money. At the same time, brick-and-mortar stores have been losing ground to increasing e-commerce sales.
But even when shopping in physical stores, the digital shift is noticeable. Self-checkout counters can be found in every larger store, some companies even launched crewless or hybrid-type stores for the convenience of their customers and to lower inter-personal contact. Convenience was also one the main reasons why e-payment services are being used more commonly, with many options only requiring the customer’s phone to make payments.
A digital shift
South Korea with its high internet speed is a highly digitalized country, and online shopping has become a leading channel in the retail market, driven by its ready availability, fast delivery times, and compatibility with busy lifestyles. As more consumers turn to digital shopping, traditional storefront shopping has declined, leading to vacant stores in popular shopping districts.But even when shopping in physical stores, the digital shift is noticeable. Self-checkout counters can be found in every larger store, some companies even launched crewless or hybrid-type stores for the convenience of their customers and to lower inter-personal contact. Convenience was also one the main reasons why e-payment services are being used more commonly, with many options only requiring the customer’s phone to make payments.
Shopping trends
Besides quality playing a big role in purchase decisions, South Korean shoppers also take price into consideration when shopping. Checking for a cheaper prices or coupons is very common, and retailers have adapted to this by often offering special promotions, like two-for-one, special events, or member benefits. Generally, the most money was spent on non-consumption expenditures, like household appliances or clothes, followed by food. In the future, experts expected a slow-down in sales and name the drop of consumer trust as one of the main reasons.
