Embrain Trend Monitor Survey
87.8% Normalize Mobile Gift-Giving
93.2% Plan to Continue Using
E-commerce Strives to Break 'Kakao's Dominance'
Focus on Enhancing Convenience in Gift Selection and Delivery
As 'mobile gifting' has become commonplace for birthdays and other anniversaries, the variety of gifts has expanded from a cup of coffee to luxury goods. The e-commerce industry is strengthening its product lineup to increase its market share in the gifting market, where Kakao currently holds more than half of the share, while also focusing on enhancing user convenience from the moment of choosing a gift to receiving the delivery.
According to a survey on 'e-coupon (mobile coupon) services and mobile gifting' conducted by market research firm Embrain Trend Monitor on the 12th (1,000 men and women aged 19-59 nationwide), 9 out of 10 respondents (87.8%) felt that 'using mobile gifting for birthdays or anniversaries has become a daily routine.' Given that 87.9% responded that gift exchanges via this function have increased since COVID-19, it is analyzed that the mobile gifting function has become more widespread as contactless consumption culture has expanded. The vast majority of respondents (93.2%) expressed their intention to continue using mobile gifting services in the future, and 80.8% said they would likely use the service for birthdays and anniversaries.
In fact, the size of the domestic mobile gifting market has grown remarkably, from 3 trillion won in 2020 when COVID-19 began to over 5 trillion won last year, and is expected to reach 10 trillion won by 2027. The e-commerce industry is placing weight on this growth potential, and is striving to break the 'Kakao's dominant position' which accounted for about 66% of the total gifting market share as of last year.
Coupang, SSG.com, Lotte On, and 11st have set up separate gifting tabs within their platforms to approach Kakao’s biggest strength, accessibility. Their main focus is diversifying gift selections and expanding convenience. According to the survey, e-coupons were gifted in various situations such as to celebrate a birthday for close people (74.5%, multiple responses allowed), to express gratitude (48.8%), and when there was a reason to commemorate (42.6%), with product exchange vouchers (87.4%, multiple responses allowed) being the most commonly chosen gift.
Coupang emphasized that its 'Coupang Rocket Gifting' service differentiates itself with fast delivery, boasting that 'if you order a gift the night before a birthday, it will arrive either early morning the same day (Rocket Fresh) or within the same day (Rocket Delivery).' Coupang is expanding its lineup beyond toys and Korean beef sets to include massage chairs, and expects the recently opened luxury beauty brand exclusive section 'Rocket Luxury' to become a major gateway for gifting. To this end, Coupang highlights that purchases made through Rocket Luxury are packaged in Rocket Luxury boxes and delivered luxuriously.
e-Coupon (Mobile Coupon) Service and Mobile Gifting Related Survey [Photo by Embrain Trend Monitor].
In the survey, users of mobile gifting valued the fact that the recipient can directly select options and that the service recommends suitable gift items by price range, a point appreciated not only by people in their 20s but also those in their 50s. Considering these points, SSG.com has strengthened customized gift recommendations by recipient, situation, and price range, and added a feature that shows only products that can be gift-wrapped for customers who care about packaging. Shinsegae Department Store’s dedicated gifting section 'Shinbaek Gift Hall' also opened a special page. Through this, SSG.com’s gifting sales grew 21% year-on-year as of last month, and the number of items sent as gifts increased by 10% compared to last year. SSG.com plans to continue enhancing product recommendation functions and add features to improve ordering convenience, such as e-coupon gifting.
11st also boasts a strength in variety by offering over 200 million tangible and intangible products (excluding some items) as gifting options. Since April 2021, it has applied the gifting service to overseas direct purchase products as well. In a separate gifting tab, it operates various specialty sections such as handmade, gourmet market, flower shop, and small luxury. Since launching the service in September 2020, it has grown by an average of 27% per month for one year and currently maintains steady transaction volume. An 11st official said, "Recently, demand for gifts such as department store products and luxury goods has been increasing, and we are keeping pace with this demand by collaborating with department stores to run promotions for imported brand cosmetics gifting," adding, "We will continue to strengthen themed gifting corners targeting the tastes of the MZ generation (Millennials + Gen Z)."
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