US retailers seeking to grow their businesses with online shoppers overseas should look to South Korea.
According to Borderfree, a specialist in international cross-border e-commerce solutions, South Korea is a standout market based on its strong currency, demonstrated zeal among consumers for shopping online, broad access to credit cards for online payments and world leadership in broadband speed and penetration.
“South Korea presents one of the best opportunities for American retailers looking to expand their e-commerce sales overseas,” said Michael DeSimone, CEO.
“South Koreans are extremely receptive to US brands, particularly in the luxury and technology categories. They are also highly responsive to online deals, and our retailers have found great success with targeted social campaigns in the region.”
Borderfree developed the Borderfree Index (BFI), a proprietary quantitative and qualitative measure to provide an indication of a market’s relative B2C cross-border e-commerce attractiveness. South Korea scored four out of five possible “shopping carts” on the BFI, indicating that it is a “desirable market” for cross border e-commerce.
South Korea was Borderfree’s 10th largest cross-border market in 2013 by sales volume, and the e-commerce opportunity ahead remains strong. Nearly 80 per cent of the country’s population is online, making it the most connected country on the planet.
Retail e-commerce spending in Korea is forecast to rise from a total of $19 billion in 2013 to $25.3 billion by 2017, an increase of more than 33 per cent.
