Online Shopping Market Struggles with Lowest Growth Since 2017

The total online shopping transaction amount in October was 20.2845 trillion won, an increase of only 0.6% (129.8 billion won) compared to the same month last year, according to Statistics Korea. This marks the lowest growth rate since the survey began in 2017, attributed to the combined effects of the TMON and Wemakeprice settlement delays and the domestic market slump.

The item with the largest decrease in transaction amount was e-coupon services, with the October transaction amount falling by 51% compared to a year ago, to just 445.4 billion won. The e-coupon service, hit directly by the "TMON crisis," has seen transaction amounts decrease for four consecutive months, with declines of 31% in July, 48.5% in August, and 48.8% in September.

The decline in fashion and home appliances consumption was also notable. The October fashion transaction amount decreased by 2.1% compared to a year ago, to 5.0068 trillion won, with significant reductions in shoes (-14.8%), bags (-12.5%), and sports and leisure goods (-10.0%). Similarly, the October home appliances transaction amount was 2.3514 trillion won, a 16.7% decrease from October last year. This was largely influenced by a 37.0% decrease in telecommunications device transactions during the same period. Computer and peripheral device transaction amounts also decreased by 10.7%.

On the other hand, food and book transaction amounts increased by 17.2% and 15.4% respectively, compared to the same month last year, recording 3.9279 trillion won and 373.5 billion won. The proportion of mobile transactions among total online shopping was 76.0%, a 2.6 percentage point increase compared to the same month last year.

The current status of the online shopping market reflects broader economic trends and consumer behavior. The economic recession has led to reduced consumer spending, particularly on non-essential items like clothing and electronics. The financial difficulties faced by major e-commerce platforms TMON and Wemakeprice have also significantly impacted the market. Additionally, the decline in e-coupon services, which have been popular in the online shopping ecosystem, further illustrates the challenges faced by the sector.