Market Trends of South Korea Retail Sector
Growing E-Commerce is Driving the Retail Market in South Korea
South Korea is a big e-commerce market worldwide. South Korea has an internet usage rate of 93% among the population, and e-commerce holds a strong position in the country. Retail e-commerce volume continued to increase, mainly due to the impact of pandemic. Online shopping was especially popular among people under the age of 40 years. In recent years, the leading online shopping categories based on sales were food and beverages and home appliances. Due to more time spent at home and the implementation of travel restrictions, online travel arrangements and reservation services expenses have decreased significantly compared to the previous years. Among the online items, clothing, footwear, sporting goods, and accessories had a significant market share.
Food Industry Dominates the Retail Sector in South Korea
The food and beverage industry in South Korea takes up more than one-third of the country’s retail market. Despite the ongoing economic downturn, food retailing, luxury goods, and electronic equipment markets showed steady growth rates. Grocery retail stores led the food retail industry in South Korea. Grocery stores became more popular by selling locally grown crops and livestock at lower prices while keeping the same quality. Over the past years, consumer confidence also increased as large retail brands and food specialists entered the online grocery market. Food companies developed logistics and delivery systems as competition in the online market intensified.
