Accelerating Trend of Mobile Phone Online Purchases... Jump from 13% to 20% in One Year

[Image source=Yonhap News]

[Asia Economy Reporter Koo Eun-mo] The proportion of mobile phone purchases made online is rapidly increasing. This trend appears to be influenced not only by the spread of non-face-to-face culture in daily life due to the impact of the novel coronavirus disease (COVID-19) last year but also by the continuous growth of the budget phone and unlocked phone markets.

According to Consumer Insight, a telecommunications research firm, on the 23rd, the share of online mobile phone purchases rose from 12% in 2015 to 20% last year. Compared to 13% in 2019, this represents an increase of more than 1.5 times (53.8%) in just one year.

The increase in online mobile phone purchases is attributed to the spread of non-face-to-face culture amid the COVID-19 pandemic, as well as the growth of the unlocked phone and budget phone markets. Users of unlocked and budget phones often purchase unlocked devices online through open markets and then separately subscribe to budget phone carriers.

In fact, last year, 43% of unlocked phone buyers and 62% of budget phone subscribers purchased their phones online. This is two to three times higher than the overall online channel subscription rate of 20% in the mobile phone market. According to the Ministry of Science and ICT, the proportion of budget phone users has steadily increased from 9.9% in 2015 to 12.8% last year.

Consumers' ability to independently compare products and services on the internet without recommendations or consultations also appears to be a factor driving the increase in online sales. Looking at information search channels before purchase, recommendations and referrals from acquaintances decreased from 31% in 2015 to 22% last year, and store visits and sales staff explanations dropped from 33% to 31%. In contrast, reliance on internet advertisements and manufacturers' online channels increased from 10% to 15% and 14%, respectively, during the same period.

The trend of online mobile phone purchases is expected to continue expanding. Although the online purchase share of mobile phones has exceeded 20%, considering that online shopping accounts for more than 60% of total shopping, the online purchase rate for mobile phones remains relatively low. This is because there is a strong perception that mobile phones must be seen in person before buying, and online procedures such as submitting necessary documents for subscription are complicated, with relatively low trust.

Consumer Insight stated, “However, as document submission procedures become increasingly simplified and online sales channels offer more diverse promotions and lower prices than offline, a new pattern will become mainstream where consumers select phone models through web-based word-of-mouth instead of traditional word-of-mouth and purchase new phones online with just a few clicks instead of visiting offline stores.”

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