Koreacenter Malltail Aggregation Results
Increase in Overseas Direct Purchase Transactions in November
On the 4th, overseas direct purchase items bought by domestic consumers during the Black Friday period are piled up at the Incheon Customs Express Logistics Center in Jung-gu, Incheon. / Yeongjongdo = Photo by Kang Jin-hyung aymsdream@
[Asia Economy Reporter Minyoung Cha] Due to the impact of the novel coronavirus disease (COVID-19) this year, the number of users of Malltail’s overseas direct purchase service in November increased by as much as 80% compared to the same period last year.
Malltail, which is in charge of overseas business at Korea Center, announced on the 8th that the number of overseas direct purchase transactions, including fulfillment, in November?which included China’s Singles’ Day (November 11) and the U.S. Black Friday (November 27)?increased by 80% compared to the same month last year. Among these, the Dahejum service increased by 155%, direct sales by 24%, and shipping agency by 9%, while the number of overseas direct purchase transactions including fulfillment at Malltail USA grew by 17%.
From Black Friday on November 27 to Cyber Monday, the online transaction amount reached up to 10 trillion won. This figure represents a 21.5% increase compared to last year, as consumers rapidly shifted to online shopping to avoid COVID-19, setting an all-time high sales record online, while offline store performance declined.
During this period, the most purchased categories by overseas direct buyers were clothing and electronics, accounting for 37.3% and 33.2% respectively, showing high market shares. The top 5 most used popular sites were ▲Amazon (23%), ▲Polo (21.8%), ▲Gap (4.6%), ▲eBay (4.6%), and ▲Macy’s (3.9%) in order.
In the clothing category, Polo offered a 40% discount on purchases over $125, and Gap held an additional 10% discount event on top of a 50% discount. Especially, Lacoste attracted demand by offering an additional 40% discount on top of a 50% discount and a free shipping event to Korea when purchasing through Malltail’s online cashback site Molly.
In the electronics category this year, hot deals on small appliances such as Bluetooth speakers, laptops, and smartwatches stood out. Marshall sold various Bluetooth speaker products such as Stanmore II, Kilburn II, and Stockwell II at prices exempt from customs duties and taxes. The 2020 model 14-inch LG Gram laptop was offered at a hot deal price of $738.9, with an additional discount applied, lowering the price to $599. Additionally, AirPods Pro were sold for $169, Apple Watch 3 (38mm) for $119, Samsung Galaxy Tab S6 Lite (10.4-inch) for $249, and Micro Maxy kickboards for $119, further heating up the Black Friday excitement.
Malltail operates nine logistics centers in seven countries, including three in the U.S. (New Jersey, Delaware, California), and has secured advanced global logistics tech know-how. This year, due to COVID-19 making overseas travel difficult, the number of customers using overseas direct purchase increased, and events such as free shipping worth 1 billion won, cashback promotions planned for Singles’ Day and Black Friday, direct sales market Tailist, Dahejum, and ShipGet services also received positive responses.
A Korea Center official said, “As of the third quarter, the accumulated operating profit is about 12.8 billion won, already surpassing last year’s operating profit,” adding, “The expansion of overseas direct purchase users due to COVID-19 and Malltail’s proactive investments targeting the second half consumption season are expected to create synergy effects, leading to record-high performance this year.”
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