Purchases made on smartphones soared in the first quarter this year, helping to make nearly one-fifth of all retail purchases online transactions, according to data from Statistics Korea on Friday.
Online purchases rose 19.6 percent on-year in the first quarter to reach 18.2 trillion won ($16.27 billion), accounting for 19 percent of retail transactions.
This was the highest proportion of purchases ever to be recorded since 2010, when statistics were first compiled.
(123rf)
In March, purchases made through smartphones made up 59 percent of all online retail transactions, pushing well past purchases made on computers.
The boost is driven by the widespread use of smartphones as well as retailers’ strengthening of their mobile capabilities, according to an official with Statistics Korea.
Major retailers such as Lotte and Shinsegae have been partnering up with e-commerce firms like eBay and 11st to offer products across various platforms and rolling out smart-pay systems with competitive loyalty programs to urge consumers to shop online.
According to 11st, mobile transactions on its site during the first quarter have constantly risen from 38.7 percent in 2015 to 51.9 percent in 2016 and 58.3 percent in 2017.
Mobile-strong firms such as social commerce firms Tmon and WeMakePrice, as well as e-commerce firm Coupang, are adding to the growth in mobile shopping.
A spokesperson for Coupang said that about 80 percent of purchases on the site came through the mobile app.
The increase in mobile shopping is accompanied by a drop in shopping at offline outlets. Retail transactions at department stores fell between 1.5 and 5.6 percent on-year each month between January and May this year.
By Won Ho-jung (hjwon@heraldcorp.com)