 More mobile-phone users are buying goods and services through their handsets. / Korea Times |
By Yoon Ja-young
As the number of smartphone users is soon to reach 10 million, more people are choosing to shop with their handsets. The mobile commerce market is seeing explosive growth.
11st, an online market operated by SK Telecom, announced that it recorded 1.85 billion won in monthly sales through mobile shopping last month, the most since it started the service. Its mobile shopping application had 625,000 downloads, and Auction and G-market have also launched similar applications.
Mobile commerce currently marks 4 billion won in monthly sales, and is expected to grow to 50 billion won this year. This is still a small part of the online shopping industry, but the growth is remarkable. According to the Korea Online Shopping Association, the market is set to double, exceeding 120 billion won next year.
The growth owes its rapid expansion of smartphones with one in five mobile phone customers owning a smart device by the end of the month. Market analysts estimate the figure to reach 20 million this year. “When considering the rapid expansion of smartphones, mobile commerce is certain to become powerful in the retail industry,” a representative for 11st said. Analysts expect that transition will move from the portal platform to mobile platform.
Not only open markets but also TV home shopping channels are stretching to the mobile sector. CJ O Shopping, Hyundai Home Shopping, GS Home Shopping, and Lotte Home Shopping have launched applications to attract smartphone users. They find it appealing as they can reach out to customers regardless of time or place. On top of showing the shopping programs in real-time, the home shopping channels are linking the mobile service with their other online and offline shops.
Mobile carriers, which have been suffering deteriorating profitability, are also taking mobile commerce as their new income source. SK Telecom, with over 5 million smartphone users, is bolstering marketing efforts for its open market 11st. Thanks to synergy with SK Telecom, 11st takes 46 percent of the mobile commerce market. It aims to increase the ratio of mobile shopping to 5 percent this year, and 20 percent in 2013.
