SME Home Shopping, Mobile Sales Not Performing Well

Efforts to Strengthen Mobile Services but User Numbers Do Not Increase Significantly
Focusing on 'Live Commerce'... Initiatives to Attract MZ Generation

Specialized home shopping channels for small and medium-sized enterprises (SMEs) are putting effort into strengthening their mobile services, but they have yet to achieve visible results. Amid the overall growth stagnation in the TV home shopping industry, diversifying sales channels through mobile to support the market expansion of SMEs and small business owners is one of the key strategies for SME-focused home shopping channels. However, due to the intense competition in the mobile sector, noticeable customer growth effects have not been realized.

According to Mobile Index by data company IGAWorks on the 30th, last month, the number of users (MAU) of Gongyoung Shopping and Home&Shopping on Android and iPhone (iOS) smartphones were 1.08 million and 3.87 million, respectively. This shows little difference from 1.07 million and 3.91 million during the same period last year. Gongyoung Shopping saw its mobile app users increase to 1.3 million in January this year, and Home&Shopping reached 4.15 million in July. Although customers increased depending on the products sold and promotions, they were not able to retain these users continuously.

This is understandable as Coupang is far ahead in the mobile shopping app sector, while existing e-commerce giants and specialized malls are fiercely competing. According to app analysis service WiseApp’s survey last month on the most used shopping apps by Koreans, Coupang ranked first with 24.2 million users in one month. It was followed by 11st with 8.6 million, Gmarket with 6.68 million, Ably with 5.28 million, and Today’s House with 4.74 million users. It is difficult for home shopping apps to gain traction competing against these apps, which have mobile as their main sales channel. An industry insider said, “We are steadily strengthening the mobile sector to diversify non-face-to-face sales channels, but it is true that it is difficult to achieve results in a market where existing e-commerce companies have already secured dominance and competition is based on price and delivery.”

The area where SME-focused home shopping channels are seeking a turnaround is ‘live commerce.’ They aim to establish a position in the mobile commerce market by presenting differentiated live commerce content based on the broadcasting competitiveness built through TV home shopping. Through this, they also expect to attract the MZ generation (Millennials + Generation Z), the main customers of live commerce. Both Gongyoung Shopping and Home&Shopping have reorganized related teams this year and established a stable system for overall mobile broadcasting technology. Their content focuses on coexistence and differentiation by supporting the market expansion of SMEs and small business owners.

For example, Gongyoung Shopping’s mobile live commerce, ‘Gongyoung Labang,’ sold various local specialties to replace regional festivals canceled due to COVID-19 this year. Home&Shopping’s ‘PangLIVE’ is also expanding broadcasts themed around small business owners such as local restaurants. An industry insider said, “Live commerce has fewer broadcasting conditions and cost constraints compared to TV home shopping, making it easier for small-scale companies to participate,” adding, “SME-focused home shopping channels expect that live commerce content involving various small business owners and companies will become a mobile competitive advantage.”

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