Social Commerce Market

 

It has been found that the average growth rate of local social commerce firms exceeded 50% last year, thanks to mobile distribution channels. 

According to industry sources, the market leader Coupang’s annual transaction amount surpassed the 1.2 trillion won (US$1.1 billion) mark in 2013, jumping over 50% from the previous year’s 800 billion won (US$7.4 million). The monthly amount exceeded 100 billion won (US$93.6 million) in June, and the cumulative amount broke the one trillion won (US$936 million) mark in the second week of November. 

TicketMonster’s cumulative transaction amount is estimated to have increased approximately 65% between 2012 and 2013 to go over 1.2 trillion won (US$1.1 billion). The sum exceeded one trillion won (US$936 million) in the third quarter of November. Likewise, Wemakeprice is expected to have joined the ranks of those with an annual transaction volume of at least one trillion won (US$936 million). 

The rapid growth of the social commerce companies can be attributed mainly to mobile distribution channels. For example, the number of consumers visiting Coupang via the mobile Web and app increased from about 3.51 million to 5.94 million between December 2012 and October 2013. The ratio of mobile-based transactions topped 50% in September last year, too. The ratio jumped from 24% to 47% between 2012 and 2013 for TicketMonster. In November, the ratio added up to 57.2%. 

These companies are expected to continue their solid growth this year as well, while competing with open market service providers and offline shopping channels as well as among themselves.

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