Inquivix Insights No.30 – March Issue 2022

The ever-evolving South Korean market is making headlines again with a range of new products and services. From Metaverse and online fashion platforms to cultural exhibitions, the market is growing rapidly with relaxed Covid 19 restrictions.  Let’s take a look at some of the key developments in the South Korean market from this month.

The Metaverse Stores of Big 3 Convenience Stores Are Not Fully Functional

One by one, Korean convenience stores are joining the Metaverse platform. But there’s the issue of not having anything real to purchase. The Big 3 convenience stores (GS25, CU, 7-Eleven) on metaverse have not yet implemented e-commerce functions. This is why Metaverse convenience shops are commonly criticized as being “empty Gangjeong.” It only includes food and drinks like PB products and triangular kimbap, which are popular. They can be held by the avatar, but actually cannot be purchased.

The Increased Coupang Membership Fee Raises Concerns

The attention is on whether or not consumers will renew their membership with Coupang. This is because existing members will be charged more for using “Wow Membership” starting in June. While some people who use services such as Coupang Play claim that 4,990 won is acceptable, others feel that the price increase is too significant.

The 2nd Batch of “2022 Facebook University” Is Now Being Recruited

Meta has announced the recruitments for the second semester of “2022 Facebook University” will be held until the 10th of April. Facebook University by Meta is a digital marketing and leadership development course for people in their twenties. Participants will learn about building brands, social media channels, producing content, and executing advertising campaigns during this eight-week digital marketing program.

Coupang Sells  Products Reviews to Vendors for 100,000 Won per Comment

Coupang has a program that rewards its most dedicated clients, the Coupang Experience Group Program, with products from stores and encourages them to provide feedback on their use. Each comment by the members of the program will receive KRW 100,000. Even if the experience group’s product reviews cost them a lot, vendors complain that it is tough to refuse an invitation to utilize the experience group.

Cultural Performances and Exhibitions Are Getting a Much-Needed Boost after COVID 19

As the demand for outdoor activities grows in the spring and Covid 19 restrictions are relaxed, cultural shows and exhibitions are becoming increasingly popular. This year’s ticket sales for performances are up by 152.4 percent. In the eCommerce sector, ticket sales for live events and exhibits are also seeing a recovery. Timon’s culture-related ticket sales increased by 52 times from the previous year. Musicals and plays have exploded 113 times, exhibitions, experiences, and events 20 times, and family performances have increased by 15 times.

Sales of ‘Ttareungi Voucher’ as a Means of Corporate Marketing 

The Seoul Metropolitan Facilities Corporation announced that it will provide corporate customers with mobile coupons for ‘Ttareungi.’ Companies that buy coupons may use them for customer discounts or loyalty points. According to the corporation, this partnership is expected to provide a chance to generate new income by promoting eco-friendly transportation as a corporate marketing tool.

The eCommerce Industry to Strengthen Its Fashion Sector

The expanding popularity of online fashion platforms such as Musinsa and W Concept has made open marketplaces like Coupang and Gmarket respond by strengthening their fashion sector. As people’s outdoor activities are expected to increase, the fashion industry is anticipated to recover. The online fashion market is rife with competition, including fashion malls, eCommerce industries, and brands’ own malls.

Conclusion

Despite the grand opening, convenience stores’ Metaverse shops are not ready for eCommerce functions. The recent news of Coupang’s increased membership fee and sale of reviews to vendors has raised some concerns, but it will be interesting to see how these changes play out in the long run. In other news, cultural performances and exhibitions are getting a much-needed boost after Covid 19, which should help revive the economy.

The sales of ‘Ttareungi voucher’ as a means of corporate marketing show a shift towards eco-friendly transportation. The eCommerce industry is strengthening the fashion sector to compete with online fashion brands.  These are the new insights we have into the South Korean market. We will bring you more news in our next issue of Inquivix Insights. Stay with us for the next update!