Korea’s major retailers are shifting their focus online as they expect savvy internet users to drive fresh growth.

Speed is the essence and large players in the market are looking to faster deliveries, in-store pickup and improved virtual stores as a major priority in gaining a professional edge against their rivals. Retailers such as Shinsegae Group, GS Retail, Lotte Shopping and Homeplus are all embracing the internet.

“The rapid advance of web and mobile technologies have enabled consumers to utilise various retail channels simultaneously and blurred the edges between them,” said Shinsegae Retail.

Dominant online stores such as 11st, Auction and Gmarket have expanded their e-commerce businesses making the most of growing smartphone use and rising spending from dual-income households.

However, like physical stores, virtual stores also pose stiff competition to each other. Trying to lure as many online customers as possible, retailers are bolstering their online businesses with enhanced marketing.

GS i Super now offers discounts for its 6000 fresh products directly delivered from farmers to customers.

E Super which run by Hyundai Department Store has invested five billion won (US$4.45 million)for website revamp and now offers free shipping for purchases worth 10,000 won and above (US$8.9 and above) with delivery made even faster.

Homeplus created virtual stores in subway stations where smartphone users can scan the products they like to purchase and once web transaction completed, the products will be delivered to their homes within a day or can be picked up at real stores.

Lotte Mart says it earned 120 billion won (US$106.8 million) from online sales last year, which now make up 1.7 per cent of total revenue. Homeplus gained online sales of 160 billion won (US$142.4 million), comprising 1.5 per cent of its total sales.

Korea’s Chamber of Commerce & Industry predicts that e-commerce will surge to 18.1 trillion won (US$16.11 billion) this year – 13 per cent higher than last year.

GB