July Online Shopping Sees Steepest Slowdown in History: 5.4% Growth Amid ‘TeamP Incident’ Fallout
- South Korea's online shopping transaction volume recorded its lowest growth rate ever in July, largely due to the delay in settlement between Timon and WeMakePrice.
- According to the 'July 2024 Online Shopping Trends' released by Statistics Korea, the online shopping transaction amount in July was 19.9626 trillion won, an increase of 1.0182 trillion...
- This is the lowest growth rate since January 2012, when statistics were first compiled for the current product group.
File photo of online shopping transactions
Online Shopping Transactions in July See Lowest Growth Rate Ever
South Korea’s online shopping transaction volume recorded its lowest growth rate ever in July, largely due to the delay in settlement between Timon and WeMakePrice.
According to the ‘July 2024 Online Shopping Trends’ released by Statistics Korea, the online shopping transaction amount in July was 19.9626 trillion won, an increase of 1.0182 trillion won, or 5.4%, compared to the same month last year.
This is the lowest growth rate since January 2012, when statistics were first compiled for the current product group. The decline in online consumer sentiment due to the unsettled situation between Timon and WeMakePrice is believed to be a major factor contributing to this trend.
Product Group Analysis
By product group, food and beverages (+14.6%), food services (+8.9%), and daily necessities (+11.1%) led the increase in total transaction amount. On the other hand, the transaction amount of e-coupon service, which is an online gift certificate, decreased by 31%, and the transaction amount of sports and leisure goods (-6.8%) and culture and leisure services (-0.2%) also decreased due to heat waves and heavy rain.
Mobile Shopping Transactions
Among online shopping transactions, mobile shopping transactions amounted to KRW 15.1173 trillion, up 6.9% (KRW 971.5 billion) from the same month last year. The proportion of mobile transactions in the total transaction amount was tallied at 75.7%, an increase of 1 percentage point from July last year.