Strong growth in South Korea’s online retail

South Korea’s retail sector is currently going through a period of intense price competition. The growth in the country’s online retail sales is in stark contrast with the picture in offline sales, prompting retailers to seek out ways to ensure they maintain their market share. According to data published by the Korean Ministry of Trade, Industry and Energy, total retail sales rose by 6.8% in 2018. However, while online sales were up by 15.9%, offline sales inched up only 1.9%. Overall, online sales now account for 37.9% of the entire retail sales (+2.9%). The lower costs associated with online retail are allowing firms to reduce prices somewhat, thus fuelling ever more intense competition to win over price-conscious consumers.