1-903, 18 Eonju-ro 146-gil,
Gangnam-gu, Seoul, Korea
Welcome to the 13th issue of Inquivix Insights! In this issue, we take a look at some of the latest trends in marketing and advertising in South Korea. We also explore how eCommerce is evolving with high competition, and take a look at new market trends from automobile to air-line industries. We hope you find this issue useful and informative!
1. Naver Labang – The Vertical Commerce Service Is Getting Bigger
While the South Korean e-commerce market has slowed down, the competition among various eCommerce platforms is expected to intensify. Due to this, Naver is expected to focus more on vertical commerce services like Labang (Shopping Live), gift-giving, and one-plus deals this year, with smart stores as a primary focus.
2. Coupang Play, 5 Times More Subscribers in a Year
Over-the-top (OTT) video streaming service “Coupang Play” has gained five times the number of users over the last year. It is quickly catching up with Tving and Wave, the other popular video streaming platforms in South Korea.
From 680,000 app users in January of last year to 3.55 million in January of this year, the number of users on ‘Coupang Play’ went up by 418%. ‘TVing’ users increased by 42% from 2.57 million to 3.66 million, ‘Netflix’ is estimated to have increased by 27% from 8.65 million to 10.97 million, and “Wave” increased by 25% from 2.85 million to 3.57 million in the same period.
3. YouTube Makes It Easier to Find Live Broadcasts
In the future, people will be able to quickly check out YouTubers who are live-streaming on YouTube. When a YouTuber starts a broadcast, a ring with “Live” written on it appears on their profile. This will allow subscribers and others who visit the broadcast to join right away by clicking the profile.
4. A Shift in the Car Purchasing Age Group from 20-30 to 50-60
In the South Korean automobile market, the buying rate of the 20-30 year old demographic in South Korea has plummeted by 26.2 %. The purchase rate of the 50-60 generation increased 41.2 %, indicating a significant change among vehicle purchasers in that age group. As a result, the biggest purchasing age group will change from those in their thirties to those in their fifties. Some expect that this shift will have a significant impact on the marketing methods of domestic automobile businesses in the future.
5. TMON Rising to No. 1 in January’s Net User Growth
With a 4.4% boost in users, TMON was the most prevalent eCommerce platform in Korea in January. TMON’s user base increased by 7.4 million people, or 4.4% from the previous month, placing it first among the top five social commerce/open market firms with the highest growth rate. A TMON representative stated that the figure was encouraging when compared to a 1% rise or fall in competition.
6. ZUMinternet’s Operating Profit Increased 700% Year-On-Year Last Year
ZUMinternet said it recorded 28.3 billion won, an increase of 19%, in sales and 6.3 billion won (704.5% increase), in operating profit last year. The net profit was recorded to be 38.86 billion won, a 398.3% increase. ZUMinternet has completely redesigned key services and news sites to make them more user-friendly while also increasing income by expanding advertising pages and pursuing efforts to increase unit prices.
7. The New Trend of Pet-Friendly Air Travel
The airline industry will continue pet-friendly marketing in line with the spread of travel trends with pets. As the popularity of “Pet Fam” and “Pet Family” (those who think of pets as a family) increases, it is rushing to expand its demand base through various marketing campaigns for passengers with pets. It is preparing to serve pet passengers with a variety of amenities.
It looks like Naver Labang is only going to continue to grow, and Coupang Play and TMON are following suit. YouTube is also making it easier for people to find live broadcasts, so that’s something to keep an eye on. In the automobile industry, the purchasing trends are shifting from younger buyers to older buyers. Pet-friendly air travel is also becoming more popular as airlines are actively promoting the trend. And finally, ZUMinternet’s operating profit increased 700% year-on-year last year; so there are definitely some changes afoot in the South Korean internet market. Make sure you follow us for more insights from South Korea!