South Korea Social Commerce Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q3 2024 Update

South Korea Social Commerce Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q3 2024 Update

According to PayNXT360, social commerce industry in South Korea is expected to grow by 18.2% on annual basis to reach US$21,180.15 million in 2024.

The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 14.1% during 2024-2029. The social commerce GMV in the country will increase from US$17,916.43 million in 2023 to reach US$41,009.71 million by 2029.

Social commerce in South Korea is rapidly evolving, driven by changing consumer behaviours and technological advancements. Brands increasingly leverage social media platforms to engage with consumers, create immersive shopping experiences, and drive sales. The rise of live shopping, enhanced personalization through data analytics, and the importance of user-generated content are shaping the future of social commerce in the country. As the market grows, retailers must remain agile and innovative to capitalize on emerging opportunities and navigate the competitive landscape effectively.
South Korea's social commerce landscape rapidly evolves, offering businesses new avenues to engage with consumers and drive sales.

Identifying Key Trends and Developments

• Integration of Social Media and E-commerce - Social media and e-commerce convergence is becoming increasingly pronounced in South Korea. Platforms such as Instagram, Facebook, and TikTok are enhancing their shopping features, allowing users to discover and purchase products directly within the app. This seamless integration fosters a more engaging shopping experience, encouraging consumer participation in social commerce.

• Growth of Live Shopping Events - Live shopping is gaining traction in South Korea, with brands hosting interactive events on platforms like Instagram and TikTok. These live streams allow brands to showcase products in real time, engage with viewers, and drive immediate sales. The interactive nature of live shopping reflects the growing consumer demand for engaging and immersive shopping experiences.

• Focus on Younger Audiences - Millennials and Gen Z are driving social commerce growth in South Korea. These demographics are more likely to engage with brands on social media and make purchases directly through these platforms. Brands adapt their strategies to resonate with younger consumers, emphasizing authenticity, community engagement, and visually appealing content.

• Personalization Through Data Analytics - Data-driven personalization is becoming essential in social commerce. Brands leverage analytics to understand consumer behaviour and preferences, enabling tailored recommendations and targeted marketing strategies. This approach enhances customer engagement and improves conversion rates, making the shopping experience more relevant to individual users.

• Increasing Importance of User-Generated Content - User-generated content (UGC) is critical to successful social commerce strategies. Brands encourage customers to share their experiences and product reviews on social media, providing authentic content that serves as social proof. Featuring UGC in marketing campaigns builds trust and credibility, driving consumer interest and sales.

• Kakao's Investment in Social Commerce Platforms - Kakao, a major internet company in South Korea, has been actively investing in various social commerce platforms to expand its ecosystem. By integrating social features into its existing platforms, such as KakaoTalk and KakaoStyle, Kakao aims to create a more seamless and engaging shopping experience for users.

Explore New Platforms and Partnerships

• TikTok's Expansion into Social Commerce - TikTok is rapidly becoming a significant South Korean social commerce player. The platform has introduced features that enable users to shop directly from videos, enhancing the shopping experience. TikTok's partnership with Shopify allows merchants to create shoppable posts, streamlining the purchasing process for users and expanding their reach.

• Naver's Social Commerce Initiatives - Naver, a leading internet company in South Korea, has been actively investing in social commerce. The platform integrates shopping features, such as Naver Shopping and Naver Pay, allowing users to discover, compare, and purchase products seamlessly. Naver's partnership with local brands and influencers has driven social commerce adoption.

• Instagram's Enhanced Shopping Features - Instagram continues to enhance its shopping capabilities with features like Instagram Checkout and shoppable posts. These tools enable brands to sell products directly through their profiles, reducing the need for users to navigate away from the app. The platform's focus on visual content aligns perfectly with consumer preferences, making it a powerful channel for social commerce.

• Collaboration with Influencers and Creators - Brands in South Korea are increasingly collaborating with influencers and content creators to drive social commerce. By leveraging these individuals' reach and authenticity, brands can effectively engage with target audiences and promote products in a relatable manner. This strategy is particularly effective among younger consumers who value peer recommendations.

Identify Key Sectors Adopting Social Commerce

• Fashion and Beauty - The fashion and beauty sectors are at the forefront of social commerce adoption in South Korea. Brands leverage platforms like Instagram and TikTok to showcase products through influencer partnerships and visually appealing content. The emphasis on aesthetics and personal expression resonates strongly with consumers in these categories, driving engagement and sales.

• Food and Beverage - The food and beverage industry embrace social commerce by promoting products and engaging with consumers through social media. Brands share recipes, cooking tips, and user-generated content to foster a community around their products, driving engagement and sales. This approach enhances brand loyalty and encourages repeat purchases.

• Home Goods and Décor - The home goods sector increasingly utilizes social commerce to reach consumers interested in home improvement and decor. Brands are showcasing products through engaging content on social media, tapping into the growing interest in home aesthetics, especially in the wake of the pandemic. This sector's focus on lifestyle resonates well with social commerce principles.

• Health and Wellness - The health and wellness sector is leveraging social commerce to connect with consumers seeking fitness and wellness solutions. Brands use social media to share informative content, promote products, and engage with health-conscious audiences. This alignment with consumer interests positions health and wellness brands favourably in social commerce.

Highlight Key Major Acquisitions

• Naver's Acquisition of Poshmark - In 2022, Naver, the South Korean internet conglomerate, acquired Poshmark, a leading social commerce platform, for $1.2 billion. This acquisition highlights global players' growing interest in social commerce and the potential for cross-border partnerships and expansion.

This report provides a detailed data centric analysis of social commerce industry, covering market opportunities and risks. With over 50+ KPIs at country level, this report provides a comprehensive understanding of social commerce market dynamics, market size and forecast, and market share statistics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of social commerce in South Korea. Below is a summary of key market segments:

South Korea Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2020-2029

South Korea Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2020-2029

• South Korea Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2020-2029 Clothing & Footwear Beauty and Personal CareFood & GroceryAppliances and Electronics Home Improvement Travel Hospitality

• South Korea Social Commerce Industry Market Size and Forecast by End Use Consumer Segment, 2020-2029B2BB2CC2C

• South Korea Social Commerce Industry Market Size and Forecast by End Use Device, 2020-2029 Mobile Desktop

• South Korea Social Commerce Industry Market Size and Forecast by Location, 2020-2029 Domestic Cross Border

• South Korea Social Commerce Industry Market Size and Forecast by Location, 2020-2029Tier-1 CitiesTier-2 CitiesTier-3 Cities

• South Korea Social Commerce Industry Market Size and Forecast by Payment Method, 2020-2029 Credit Card Debit Card Bank Transfer Prepaid Card Digital Card Digital CardDigital & Mobile WalletOther Mobile Wallet Other Digital PaymentCash Mobile Wallet Other Digital Payment Cash

• South Korea Social Commerce Industry Market Size and Forecast by PlatformsVideo CommerceSocial Network-Led CommerceSocial ResellingGroup BuyingProduct Review Platforms

• South Korea Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour,2023By AgeBy Income LevelBy Gender

Reasons to buy

• In-Depth Insight into Social Commerce Market Dynamics: Gain a comprehensive understanding of social commerce market opportunities and significant trends, alongside projections for the 2020 to 2029 period. This insight is crucial for businesses looking to thrive in the expanding social commerce landscape.

• Detailed Analysis of Opportunities by End-Use Sectors: Investigate the market dynamics within various end-use sectors to identify and evaluate emerging opportunities. This analysis enables businesses to tailor their strategies effectively and capitalize on growth potential in the social commerce market.

• Formulate Targeted Social Commerce Strategies: Identify key growth segments and target specific opportunities to develop an effective social commerce strategy. Evaluate market-specific trends, drivers, and risks to ensure your approach aligns with consumer behaviors and preferences, ultimately enhancing engagement and conversions.