March Online Shopping Transaction Volume Hits Record High... Increased Demand for Travel and Leisure Services

Travel and Transportation Services Sector Turns to Growth After 13 Months... "Considering Base Effects"
Significant Increase in Food and Beverage, Computer Transaction Volumes

[Asia Economy Reporter Jang Sehee] Due to concerns about COVID-19 infection, people refrained from going out, resulting in the highest-ever increase in online shopping transaction amounts in the first quarter of this year. The travel and transportation services sector, which had shown negative growth (-) since February last year (-50.1%), also turned to positive growth after 13 months.

According to the "March 2021 and Q1 Online Shopping Trends" released by Statistics Korea on the 6th, the online shopping transaction amount in March was 15.8908 trillion KRW, an increase of 3.3155 trillion KRW compared to the previous year. In particular, as demand for food delivery orders and travel increased, the service transaction amount rose by 69.0% from a year earlier to 3.465 trillion KRW, marking the largest increase. Especially, the travel and transportation services sector, which had shown negative growth for 13 consecutive months, turned to positive growth due to the base effect and other factors.

A Statistics Korea official explained, "Since it dropped significantly in March last year (-76.2%), this appears to be a turnaround due to the base effect."

Additionally, other services (227.1%) and culture and leisure services (131.4%) transaction amounts increased significantly. As time spent at home increased, transaction amounts for food and beverages (21.1%) and computers and peripherals (26.2%) also rose sharply.

Mobile shopping transaction amount was 10.9816 trillion KRW, increasing by 29.4%, marking the second highest ever. In December last year, mobile shopping transaction amount recorded the highest ever at 11.0737 trillion KRW.

Online overseas direct sales, where overseas consumers purchase products from domestic online shopping malls, amounted to 1.1782 trillion KRW, a decrease of 23.0% compared to the previous year. By country, China (-23.4%) and ASEAN (-60.3%) saw declines. Statistics Korea explained that the decrease was influenced by reduced shopping for duty-free cosmetics and fashion/clothing by Chinese tourists due to COVID-19.

Online overseas direct purchases, meaning direct buying (jikgu), amounted to 1.4125 trillion KRW, an increase of 44.2% compared to the previous year. Increases were seen from China (223.6%) and the United States (11.3%). By product category, clothing and fashion-related products (33.2%) saw significant growth.