Seven Eleven, one of the leading convenience store franchise in South Korea, now sells cosmetics at its stores nationwide. [Yonhap Photo]
The history of convenience stores in South Korea dates back to 1989 when 7-Eleven opened its first outlet in Seoul. Back then, there were consumer doubts whether this country needs a store which is open for 24 hours, but the industry is now thriving thanks to the increasing population of the so-called "Solo Tribe".
Data released by the Korea Association of Convenience Store Industry (KACSI) showed that the convenience market in 2016 was estimated at 20.4 trillion won (1.8 billion US dollars), up 18.6 percent from 17.2 trillion won in 2015. At the end of last year, 32,611 convenience stores were counted as operating nationwide.
It's the only industry which has seen big growth in recent years despite a protracted economic downturn. KACSI attributes its growth to the growing number of single-person households.
The trend of living alone has been induced by various social factors such as a low birth rate and low income among young people. Individuals nowadays prefer personal happiness to sharing moments with others.
Solo Tribe is a neologism which has settled in South Korea during the last five years, followed by the appearance of solo-drinking bars and solo-eating restaurants. The people who fit into the category like to eat, shop, and spend their free time alone. The radius of their life is relatively small, so they shop at the closest convenience store around their home.
Convenience store franchises were quick to adapt to the new social trend, adding cheap and tasty food boxes such as lunch boxes and salad bowls to their shelves. Coffee dispensers were brought in with some stores providing parcel delivery services for businessmen who are too busy to visit post offices during their work hours. Simple clothing such as T-shirts and underwear are common items.
Given sales of a convenience store in South Korea is about a quarter of a convenience store in Japan, which is leading the world's convenience store trend, KACSI officials predict a continued boom at least until 2023.
Park Sae-jin = swatchsjp@ajunews.com
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