There is a growing trend of online shopping everywhere, in a recent study it has been seen that China is now outspending Korea in terms of e-commerce. The percentage of Chinese tourists to Korea has risen 118.5% to 2.18 million this year which is impacting upon sales. Chinese people buy cosmetics, food, travel items and use reservation services online mostly by via the internet on their mobile.
Cosmetics made in Korea
Chinese consumers buy cosmetics made in Korea online , the purchase of cosmetics at local, online retailers expanded 55.4% whilst food purchases rose to 34.6. percent. Travel and reservation bookings rose 15.2% in Korea as online transactions continue to grow.
Mobile phone purchases are strongly linked to online duty free stores who have opened up digital stores. Huge profits can be generated from products purchased from the US, US branded products accounted for 63 percent of Korea’s whole sale purchases to re-sell. Korea, with their favorable location on the doorstep of China can perfectly capitalize on the increasing number of visitors and also online shoppers. There is a strong business infrastructure in place. They also are strongly benefiting from the influx of mainland Chinese tourist-shoppers, which has been seen in recent years especially.
But destinations like South Korea are poised to gain further with these big-spending travelers looking further afield. Angling to capture a bigger slice of the Chinese outboard tourist market from Japan over the last year, South Korean luxury retailers, cosmetics brands and department stores have invested heavily in marketing. They are looking to leverage their countries regional reputation for everything from cosmetics cuisine to pop culture and medical services and hotel stays.
Korea, the new Hong Kong
Chinese purchases of goods from Korea now accounts for 58% of the total goods in Korea. A recent study has shown that Chinese shoppers and tourists are especially drawn to Seoul which recently expanded the ‘sweetie room’ department store and announced they will be offering personalized shopping services for Chinese customers. They now accept payment in both Chinese yuan and the Hong Kong Dollar. The store also is improving its services, increasing recruitment of Chinese speaking staff and handing out special gift certificates to Chinese shoppers who spent at least 1 million RMB in a day.
Korea is improving for shopping although Korea mainly sells the goods which it actually purchases from the USA this accounts for 62%. Chinese purchases of goods from Korea now accounts for 58% of the total goods in Korea.
As they have in Paris, Singapore and Japan, tourists have also been among the most active shoppers at duty-free shops in Korea Seoul saw a33% total increase in sales this year with Chinese travelers accounting 28% of the purchases a 14% rise over last year. This group made up a great proportion of customers at Shilla duty-free shop.
China is outspending Korea in terms of online shopping, even the government of Korea is developing a strategy for better online, digital shopping services, they can greatly profit from the online sector if these services are improved and tailored more for Chinese users.
Korea is finding investors in the online sector. Chinese investors are still investing globally and Korea with it’s close proximity is benefiting from this. Online and physical shopping is becoming a key part of the South Korean economy with such a large Chinese consumer base. Whole sale and retailers are developing better relationships and realizing they need to be present on the Chinese internet as without a presence and popular e-reputation they are practically invisible.
The state are also expecting investment from different countries in shopping centers and online platforms, especially from China.
There is one key point to consider, this can be a disadvantage for China with shoppers travelling elsewhere and using different platforms. China’s people are becoming dependent on online shopping, even sitting in China they can shop from Korea via the internet on their mobile phone, on the plus side there are moves to ship in more Korean products within China itself, these can then be sold on Chinese platforms and by localized retailers.
Korea’s GDP is growing, as is China’s. Mutually beneficial business and travel is of the essence. Korean wholesalers increasingly collaborate with Chinese businesses and platforms for the benefit of both nations.
Let us hope that Korea builds a good online business that is collaborative with Chinese platforms. Chinese investors should also invest in domestic sectors so that their money is kept in their country itself, and does not all go outside.
They should also try to do build up online stores that offer Korean products so that the consumers do not have to go out of their country and in turn, their GDP will also grow. In China digital development happens at a breakneck speed so watch how this develops. It is certainly a lucrative market for all concerned.