The South Korea retail sector market size was valued at USD 473.61 Billion in 2022 and is projected to reach USD 708.69 Billion by 2031, expanding at a CAGR of 4.58% during the forecast period, 2023 – 2031. The growth of market is attributed to growing number of shopping malls, restaurants, advanced movie theaters, and high end supermarkets along with the changing consumer’s lifestyle and demographics of the country.
Retail market of South Korea is considered as one of the largest market all over the Asian continent. Retail businesses at present such as online retailing, grocery supermarket, hypermarket, and convenience store are gaining popularity at an exponential rate during the last few years as compared to conventional retail stores, which involves family-operated business and street markets.
South Korea is one of the most connected countries globally; approximately 95% of the household uses broadband and have access to internet facility, 80% of Korean age 6 and above owns a smart-phones.
Some of the examples such as Lotte department store Bundag branch introduced a new service which replaces the use of physical shopping cart, offering the customers to shop just by scanning the bar code of the product with a handheld scanner provided by the shop itself along with completing the payment and offering the option to deliver their purchases to their home.
From the last few years due to the COVID-19 outbreak, South Korea has witnessed a major downfall in the economy and is estimated to grow at a steady pace. However the retail sector is anticipated to show a positive sales growth owing to the significant rise in online retailing, and aggressive promotional and marketing activities by the major retailing companies.
South Korea Retail Sector Market Trends, Drivers, Restraints, and Opportunities
- Increasing number of enhanced public infrastructure such as high-end supermarkets, trend setting brands, and cutting edge movie theaters is expected to spur the market in the coming years.
- Rapid growth in retail businesses such as online retailing, convenience store, and more is estimated to propel the market during forecast period.
- Increasing investments towards the aggressive marketing and brand promotional activities by the key players of the market is anticipated to boost the market during the projected period.
- Changing demographics and consumers lifestyle is expected to impel the market in the coming years.
- R&D and technological advancement by the retailer towards the adoption of digital technologies to attract customers and offer them a better shopping experience creates lucrative opportunities for the market players.
- The impact of pandemic slows the growth rate of the economy which acts as one of the factor that can hinder the growth of the market during the projected period.
Scope of South Korea Retail Sector Market Report
The report on South Korea retail sector market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Retail Market – South Korea Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Product Types (Personal Care and Household, Food, Beverages, and Tobacco Products, Furniture, Toys, and Hobby, Apparel, Footwear, and Accessories, Industrial and Automotive, Electronic and Household Appliances, Pharmaceuticals, Luxury Goods, and Other Products), Distribution Channels (Specialty stores, Online, Department Stores, Hypermarket, Supermarket, and Convenience Stores, Other Distribution Channels.)
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Country
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South Korea
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Hyundai Home Shopping Network Corp; Everyday Retail Company Limited; Lotte Holdings Corporation Limited; Shinsegae Department Co. Ltd; Mega Mart Co. Ltd.
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South Korea Retail Sector Market Segment Insights
Based on product types, the market is segregated into personal care & household, food, beverages, & tobacco products, furniture, toys, & hobby, apparel, footwear, & accessories, industrial & automotive, electronics & household appliances, pharmaceuticals, luxury goods, and others.
The personal care and household segment is expected to hold major share of the market during the forecast period according to the Korean culture and standards beauty and appearance is considered as one of the important feature, thus the demand for beauty products and surgeries are always high among the population to attain the look they desire. Constant product innovation, use of sophisticated ingredients, and attractive packaging are always on display which stimulates the market.
On the basis of distribution channels, the market is categorized into specialty stores, online, department stores, hypermarket, supermarket, and convenience stores.
The online segment is estimated to account for a large market share during the projected period owing to the massive reach of IOT, and increased number of local as well as global retailers on the digital platform offering their products and services to the population offering a wide range of product and a better shopping experience for the shoppers. Also with the increasing promotional activities on digital platform by the retailers the market is estimated to augment.
Segments
The South Korea retail sector market has been bifurcated on the basis of
Product types
- Personal Care & Household
- Food, Beverages, & Tobacco Products
- Furniture, Toys, & Hobby
- Apparel, Footwear, & Accessories
- Industrial & Automotive
- Electronics & Household Appliances
- Pharmaceuticals, Luxury Goods, & Other Products
Distribution Channels
- Specialty stores
- Online
- Department Stores
- Hypermarket
- Supermarket
- Convenience Stores
- Others
Country
Key players
Competitive Landscape
Key players competing in the South Korea retail sector market include Hyundai Home Shopping Network Corp; Everyday Retail Company Limited; Lotte Holdings Corporation Limited; Shinsegae Department Co. Ltd; Mega Mart Co. Ltd. Some of these players are targeting on business strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to increase their market shares. For instance,
- In January 2021, the British household appliance brand, Dyson launched its first flagship store in South Korea in IFC Mall.
- In November 2020, GS group announced a plan to collate with GS Retail and GS Shop, its home shopping affiliate.
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