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Welcome to the eighteenth edition of Inquivix Insights! In this issue, we take a look at what’s been happening in the South Korean market over the past few weeks. So whether you’re looking to update your tactics or just stay informed, read on for insights from Inquivix!
1. Pokemon Bread Is Back, Sparking Nostalgia in Millenials
The popularity of Pokemon bread, which debuted in the 1990s and generated a collecting craze, is on the rise among millennials. As a result, more and more sweets manufacturers are re-releasing previously discontinued versions in response to the rising consumer demands. It’s seen as a marketing strategy aimed at encouraging consumers in their 30s and 40s to buy products that bring back the nostalgia of their childhoods.
2. TikTok Now Has 10 Minute Videos
TikTok increases the image length to up to 10 minutes. TikTok previously expanded the length of the video from 15 seconds to 1 minute and expanded it to 3 minutes in July last year. The expanded length of the video is expected to be useful for creators such as cooking demonstrations, beauty tutorials, education, and comedy content, which had to be produced as a series before.
3. Coupang Speeds up Its Entry into the Courier Industry
Coupang, the South Korean eCommerce company, is attempting to break into the courier business with “Rocket Shipping”, its own courier service. Coupang expects to make profits by offering third-party logistic services. In the meantime, the No. 1 courier service, CJ Korea Express, has been experiencing a strike for more than two months as a result of an industrial dispute with the courier union.
4. The Collaborative Tool Industry Is Becoming Highly Competitive
The collaborative tool industry is experiencing a lot of competition, as it has been growing rapidly since COVID-19. Many companies have opted for remote working which has increased the demand for collaborative tools for work. To improve brand recognition, each business is using a variety of marketing tactics. It appears to be targeted at capturing the domestic market first in the worldwide collaboration tool industry, which is expected to grow up to KRW103.5 trillion by 2026.
5. Yonhap News Agency Lost Market Share Due to Suspension of Portal Exposure
Last year, the top four media companies controlled around a fourth of the most read news page views on Naver. When considering the top 10 media outlets, the combined market share was 46%. However, during the two-month period when no Yonhap News content was not accessible on the portal, its market share plummeted from 4.3% to 1.03%. The suspension was said to be due to the low quality of the news posted by the channel.
6. Gmarket Auction, Interpark, and Home Shopping Also Jumped into “Morning Delivery”
Companies are launching services or broadening their scope as the fresh food delivery market booms. In Seoul, Gmarket Auction has started pilot programs for members of the Smile Club. In addition to this, Interpark also began a delivery service for livestock and marine products that delivered goods in the morning. Other home-shopping companies are getting on board with the morning delivery offers. CJ On Style, a home-shopping site ran a pilot program in August last year to test out the morning delivery market.
7. Convenience Stores Set Up Special Offers for “White Day”
The convenience stores have put up a special deal for “White Day” by collaborating with trendy and popular brands. White Day is celebrated on the 14th of March (exactly one month after Valentine’s Day) in Korea. Live commerce and mobile shopping avenues have been expanded to improve purchasing convenience, in addition to items that are limited edition.
South Korea is setting new market trends as we speak. It has brought back childhood memories for the Millennials by relaunching Pokemon Bread. The South Korean e-commerce industry is trying to make more revenue by offering third-party logistics as well as morning delivery services. Meanwhile, the convenience stores are getting ready for the “White Day” celebrations with special offers.
As COVID-19 has made many companies operate remotely, the popularity of collaborative tools has increased making the industry highly competitive. The popular social media app TikTok has extended its video length to facilitate creators. In other news, some Korean news platforms are losing their positions due to a lack of credibility while some dominate the viewer counts.
That’s all for now but stay with us because there are plenty more insights where that came from. In the meantime, what are your thoughts on these latest trends? Don’t forget to share this article and follow us for more updates!