KCCI Announces Online Distribution Market Trends
Mobile Transaction Volume Three Times Larger Than PC
The transaction amount of online shopping in the first half of this year reached a record high of 120.4 trillion KRW. The increase in 'service' transactions such as travel, food delivery, and leisure led the growth of online commerce.
The Korea Chamber of Commerce and Industry announced on the 26th, through its online distribution market trends report, that the transaction amount of online shopping in the first half of this year increased by 9.7% compared to the same period last year.
Among the online shopping transaction amounts, service transactions amounted to 35.2 trillion KRW, accounting for 29.2% of the total online transactions. This represents a 12.8% increase compared to the same period last year, surpassing the growth rate of product transactions (8.4%) during the same period. Among these, food delivery services accounted for 13.6 trillion KRW, and travel and transportation services accounted for 13.1 trillion KRW, representing the largest shares. The 'e-coupon service' showed the highest growth rate at 20.1%.
It is analyzed that the online service transactions rapidly grew as the food delivery market was established with the normalization of non-face-to-face transactions after COVID-19, and travel demand explosively increased after the endemic phase. Gu Jin-kyung, head of the Future Service Strategy Office at the Korea Institute for Industrial Economics and Trade, said, "The online service market has expanded due to increased overseas travel demand and the emergence of new service products," but also forecasted, "The scale of service transactions may somewhat decrease in the second half of the year due to the Tmon and Wemakeprice incidents."
By sales channel, transactions via mobile accounted for 74.6% of total online transactions, reaching 89.8 trillion KRW. This is three times the amount of PC transactions (25.4%). In the case of food services, 98.5% of transactions occur on mobile, confirming the dominant position of mobile. Travel and transportation services also rapidly grew from about 4 trillion KRW during COVID-19 to 13.1 trillion KRW in the first half of this year, with a significant increase in the share of mobile transactions.
Online Shopping Sales Channel Transaction Amount and Share in the First Half of This Year [Image Source=KCCI]
Product transactions also steadily increased. The transaction amount for products in the first half of the year was 85.2 trillion KRW, an 8.4% increase compared to the previous year. Although growth slowed for a while after COVID-19, it showed a rebound this year. Professor Ha Heon-gu of Inha University evaluated, "Despite the low-price offensive of Chinese e-commerce (C-commerce), it is encouraging that product transactions have recovered to previous levels."
A representative from the Korea Chamber of Commerce and Industry emphasized, "Mobile payment systems and user-friendly environments are driving the growth of mobile shopping," and added, "Since consumer sentiment has been dampened by the Tmon and Wemakeprice incidents, online shopping companies need to prepare various measures to restore consumer trust and stimulate consumption."
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