In South Korea's e-commerce market, specialized retailers are becoming more prominent than general marketplaces. While the growth of comprehensive malls has slowed, specialized platforms focusing on fashion, beauty, and household goods are rapidly expanding. As consumer interests become more segmented and inflation drives demand for value, vertical commerce is emerging as a new growth driver.
According to the National Data Agency, the online shopping transaction growth rate was 8.6% in January and 5.3% in February, followed by 13.4% in March, 10.0% in April, and 10.3% in May, maintaining a double-digit growth for three consecutive months. In May, the transaction volume for comprehensive malls reached 13.38 trillion won, a 7.8% increase, while specialized malls saw a 13.3% increase to 11.63 trillion won.
The annual transaction volume for specialized malls, which was 100.64 trillion won in 2023, is projected to grow to 114.15 trillion won in 2024 and 124.67 trillion won in 2025. As of May this year, the cumulative transaction volume reached 55.87 trillion won, marking a 13.7% increase compared to the same period last year.
Changes are also evident in app user numbers. According to Wise App and Retail, the specialized mall app with the highest monthly average users (MAU) in April was Abley, with 9.98 million users, surpassing AliExpress (8.57 million) and Temu (8 million) for the first quarter of this year. Other notable performers include Olive Young, Daiso, and Musinsa, collectively known as 'Oldamu.' Olive Young's users increased from 7.73 million in April last year to 8.83 million this April, while Daiso Mall grew from 3.8 million to 5.13 million. Musinsa also saw an increase from 7.28 million to 7.4 million during the same period.
In contrast, comprehensive malls and Chinese e-commerce apps are experiencing a slowdown. 11th Street's MAU dropped from 8.93 million in April last year to 7.7 million this year. AliExpress fell from 8.81 million to 8.57 million, and Temu decreased from 8.48 million to 8 million. Gmarket also saw a decline, dropping from the 7 million range last year to 6.9 million in the first quarter of this year.
Industry experts suggest that consumers are increasingly favoring specialized malls that offer curated product selections and recommendations over general marketplaces that simply aggregate a wide range of products. This trend is particularly pronounced in categories like fashion and beauty, where personal preferences play a significant role. Additionally, rising inflation has heightened price sensitivity, driving demand for relatively cheaper products in specific categories, further supporting the growth of specialized malls.
The targeted strategies of specialized malls have also proven effective. Abley, the leading company in MAU, utilizes data accumulated from 150 billion transactions annually to provide optimized recommendation services that reflect consumer preferences in real-time.
An e-commerce industry insider stated, "Recent consumers are seeking more specialized product assortments and information in their areas of interest, and specialized malls appear to be quickly absorbing this demand."
* This article has been translated by AI.
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