[Korea Insights] Online retail sales cross over the brick & mortar sales in Korea
I read an article saying COVID19 advances the digitalization 10 years faster. As part of progress, online retail sales exceeded the offline retail sales for the first time on last March.
The total retail industry dropped -3.3% as offline channels decreased -17.6% while online channels increased +16.9%. High user rate of smart phone and high-speed internet infrastructure supported the change. It will last a couple of months under the COVID19 situation. Since consumer want untact shopping, there is high possibility online retail would grow faster than the offline even during the recovery time.
Grocery is the top contributor.
Food & grocery shopping sales is the number one contributor, following by electronics and telecom. The number three is food delivery.
Food delivery is the fast growing mover.
Among the top contribution, food delivery is growing faster than any other sectors as consumer behaviours change during the lockdown period.
We live in the deliverable world.
What does it mean?
1. Convenient & save my time
2. Generate more package garbage
3. Expose more myself to google ads