1-903, 18 Eonju-ro 146-gil,
Gangnam-gu, Seoul, Korea
The marketing trends are always changing. There are also marketing trends specific to the Korean market. This post covers some of the latest changes in Korea’s marketing landscape and promotes awareness among marketers to stay up-to-date with these trends. Social media is advancing with Instagram introducing new features while certain data regulations in the EU are affecting operations of Facebook and Instagram in the region. The Omicron pandemic is affecting the retail industry making some stores and services thrive while certain industries like cosmetics take a hit. However, some businesses have adapted their strategies to deal with the new market trends.
1. Meta Is Concerned about the Suspension of Facebook and Instagram Operations in Europe
According to Meta, European data regulations may lead to the suspension of services on Facebook and Instagram in Europe. This is because of changes that have occurred due to the EU’s new laws related to data regulations. Facebook has been under fire for refusing to comply with the latest EU law which requires companies like Facebook and Instagram that store user data on European servers. However, both services process their users’ information primarily in the US. Meta stated that they are expecting a possible outage if related treaties aren’t finalized before too long. This may impact digital marketing as well as eCommerce industries if not sorted out properly as Facebook and Instagram play a significant role in them.
2. The Cold Breeze of E-commerce Solutions amid the Boom in Online Shopping
While online shopping transactions have exceeded 190 trillion won, the performance of eCommerce solution companies is expected to be sluggish despite the predicted growth. Cafe 24 and Korea Center predicted that sellers on large platforms will build their own malls but it’s presumed this demand wasn’t high enough for them in light of other factors such as competition from smaller sellers who don’t charge premium prices or offer free shipping; also due to the fact that some consumers preferring physical stores over digital ones (even if they are cheaper).
3. Sales of Cosmetics Decreased by 10 Trillion Won over the past 2 Years
The cosmetics industry has seen an astonishing drop of 10 trillion Won in sales over the past two years due to COVID-19. The cosmetic market is made up of a variety of products, including skincare and haircare, make-up, fragrances, toiletries, perfumes, toothpaste, dental hygiene items, and other cosmetics. Offline sales dropped significantly, which was inevitable with social distancing and refraining from going out. But the online sales of cosmetics, out of 23 consumer goods, went down by 1.8% last year.
4. Is Too Much Noise Marketing Misleading the Consumers?
The eCommerce industry has been criticized for its dazzling marketing techniques that often lead consumers into canceling orders after they’ve already been placed and paying discount coupons. The companies behind these ads claim it’s an accident, but customers disagree and say the errors were intentional because of how poorly designed this type of error messaging really was – leaving users feeling scammed instead of helpfully informed about what went wrong with their purchase!
5. Instagram, “Take a Break” Function Is Launched Worldwide
Instagram is expanding its new safety function “Take a Break” to all users around the world. It has already been launched in the US, UK, Canada, and Australia. The feature will send a warning message when a user has been using the platform for more than a certain period of time and directly limit and manage the time spent on the app. It was introduced so that people can recognize how much they’re using this platform and avoid any burnout or addiction issues that may arise due to excessive use.
6. Collaboration, Limited Edition, Pop-up Store: A Heated Whiskey Marketing Competition
The stagnant whiskey market is heating up! As more people drink at home in the wake of COVID-19, distillers are paying attention to marketing strategies. They release collaborative products with high-end fashion brands and collectibles like glasses. They are even opening pop-up stores inside department stores or presenting their finest blends on tap, all while producing an array of limited edition blends for collectors.
7. Delivery from Convenience Stores in January Is 37% In Omicron Pandemic
The convenience store industry has been booming as the spread of Omicron makes customers desire services that deliver products from these stores or facilitate picking them up directly. Delivery sales from convenience stores have recorded 37% out of total sales in January. Sales on Sundays made up 20.1% with Saturdays coming in at 17.8% accounting for 40% of sales per week. Fridays recorded the highest percentage at 12.9% out of the weekdays while the other four days accounted for 49.2% making the daily average around 12%.
The changing trends of digital marketing in the world will have an impact on the Korean market as well since the world is intricately connected. The world is waiting to see the next step of Meta related to Facebook and Instagram operations with data regulation laws in the EU. However, Instagram has gone ahead with the global launch of its latest feature, “Rest” for the digital well-being of the users.
Delivery services have helped convenience stores to thrive in the pandemic, while some large-scale eCommerce businesses are thinking about opening physical stores. The whisky industry is opting to employ new strategies to sustain its sales. However, the cosmetics industry has taken a large hit due to the COVID-19 pandemic. We hope that these marketing updates have given you insight into the Korean market. Follow us for more updates from the South Korean market!