"Capture the 500 Billion Won Black Friday Market"... 11st + Amazon vs Open Market

E-commerce Direct Purchase Customer Battle 'Fierce'

11st will hold the 'Black Friday Original' sale until the 30th.

[Asia Economy Reporter Lim Chunhan] On the eve of the largest-ever discount event, the U.S. Black Friday, the battle to attract direct overseas shoppers between 11st+Amazon and open markets is in full swing. The overseas direct purchase amount during the two weeks of the Black Friday event is estimated to be about 500 billion KRW, and the e-commerce industry is paying close attention to how much of an Amazon effect 11st will have.

On the 25th, 11st announced that it will offer up to 50% discounts on about 50,000 popular products from the Amazon Global Store in celebration of Black Friday. The Black Friday event prices on the official Amazon website will also be applied as is. The number of discounted products has expanded more than twice compared to the 2.8 million products sold when partnering with Amazon. A particular strength is the free shipping service, which overseas direct shoppers found inconvenient. Anyone who purchases over 28,000 KRW can receive free shipping, and Woju Pass subscribers get free shipping even if they buy just one product regardless of the purchase amount.

In response to the offensive by 11st+Amazon, the e-commerce industry is also actively working to capture Black Friday demand. SSG.com is offering discounts on about 100,000 products worth 10 billion KRW through the ‘Black SSG Friday’ event. They have prepared luxury goods, fashion, cosmetics, and home appliances including Samsung Electronics TVs that are not sold on Amazon. Lotte ON is also preparing about 10,000 overseas direct purchase products worth 5 billion KRW through the ‘The Black Week’ event. Luxury select stores Lotte Tops and Lotte Duty Free are participating in the event, offering popular overseas luxury goods at up to 70% discount. Gmarket and Auction are also offering the most popular overseas direct purchase products of the year at special prices and providing coupons that give a 100,000 KRW discount on purchases over 700,000 KRW.

According to Statistics Korea, last year’s overseas direct purchase transaction amount was 4.1094 trillion KRW, with the fourth quarter transaction amount reaching 1.2575 trillion KRW. Excluding the transaction amounts during China’s Singles’ Day on November 11 and the year-end Christmas period, the transaction amount during the two weeks of Black Friday is estimated to be at least 500 billion KRW.

The trend of retaliatory consumption that continued throughout this year remains strong. This is why 11st, which had recorded sluggish performance after introducing the Amazon Global Store, is expecting an ‘Amazon effect.’ An e-commerce industry insider said, "The key point to watch is how much of the 500 billion KRW Black Friday demand 11st can capture," adding, "Competitors are also preparing a large number of popular products not sold on Amazon, so fierce competition is expected."