"To Buy or Not to Buy? That Is the Question"… People Suffering from 'Hamlet Syndrome'

[W Forum] Changes in the Online Shopping Market and the Paradox of Choice

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Shopping has somehow started to feel both easy and difficult at the same time. This contradictory feeling is related to changes in the shopping environment. According to Statistics Korea, online shopping transactions surpassed 12 trillion won for the first time last November, continuing a sharp growth trend, with mobile shopping accounting for about 66% of that total.

The convenience of being able to easily browse and purchase desired products anytime and anywhere is the core and driving force behind the growth of online shopping. In particular, mobile-centered online shopping has become much more convenient recently. Enhancements in curation functions that analyze consumers' interests and preferences to suggest personalized products, improvements in delivery convenience such as dawn delivery, the introduction of in-app payments on social media allowing payments without leaving the app, and the popularization of simple payment methods all help reduce the time and effort consumers need to invest in shopping.

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However, paradoxically, the vast amount of product information and shopping services available online can also cause decision paralysis or Hamlet syndrome. The current online market is considered a battleground with fierce competition. Not only the established e-commerce giants such as social commerce and open market operators but also offline manufacturers, distributors, and TV home shopping businesses have entered the fray, with all players now focusing their efforts on online and mobile shopping.

Moreover, the commercialization of social media, originally unrelated directly to shopping or purchasing, has brought about a new phase. Various creators and influencers actively engage on social media, influencing shopping and purchase decisions. Additionally, ordinary consumers can also become sell-sumers by using social media or new platforms to act as sellers. The rapid growth of one-person markets has led to the emergence of a 'cell market,' a highly segmented market composed of extremely fine cellular units.

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As the number of alternatives for where, how, and from whom to purchase products rapidly increases along with the amount of product information available online, consumer decisions are no longer easy. An analysis of actual behavioral data by a research company showed that a woman in her 30s, a full-time housewife named Ms. A, explored related products on more than 10 different shopping malls including social commerce, open markets, comprehensive malls, and home shopping, collected information on coupons and point benefits, and then made a comprehensive comparison before purchasing clothing worth around 100,000 won. Especially for high-priced and important products, so-called high-involvement products, the consumer purchase journey tends to be long and complex.

According to a survey by Open Survey last year, consumers install and use an average of 5.8 shopping apps per person. With various shopping services available, consumers form a kind of repertoire composed of shopping apps that meet certain criteria and decide on purchases by using one or a combination of these services depending on their purpose. Since shopping apps that provide differentiated services reflecting characteristics such as age, gender, and interests are continuously developed, mobile shopping, which is centered around various apps, shows a fragmented pattern. ZIGZAG, which gathers over 3,500 shopping malls in one place, is the most used shopping app among teenagers.

The advancement of technology and the entry and competition of various operators have recently brought about rapid changes in the landscape of the online shopping market. In particular, the integration of commerce functions into media platforms including social media, and the increase in overseas direct purchase transactions by domestic consumers, expected to exceed 3.5 trillion won last year, indicate that the boundaries between media and commerce, global and domestic operators, and between countries are breaking down. This is why it is difficult to define the online shopping market and distinguish various services. While these changes are welcome in that they provide consumers with diverse services and alternatives, it is interesting that having to make numerous choices and decisions during the purchase journey can be a new challenge for consumers.

Choi Se-jung, Professor, Department of Media Studies and Graduate School, Korea University

This content was produced with the assistance of AI translation services.