"October Black Friday Effect?" E-commerce Records Highest Sales Growth Rate in 14 Months

October e-commerce sales up 12.6%
Highest in 14 months
Impact of large-scale promotions during 'Black Friday' season
Offline growth rate limited to 0.5%

The e-commerce industry recorded the highest year-on-year sales growth rate in 14 months, thanks to various discount events held ahead of Black Friday in October. Meanwhile, the offline sector, including department stores, saw only a slight increase due to the shift in purchasing demand to online channels.

According to the 'October Major Retailers Sales' report released by the Ministry of Trade, Industry and Energy on the 29th, the e-commerce industry's sales growth rate in October this year was 12.6% compared to the same period last year, marking the highest figure in 14 months since August last year (16.4%). The online sector's sales growth rate hit a low of 3.2% in April, then rose sharply from May when outdoor activities became more active, reaching a peak of 12.0% in September. It increased by another 0.6 percentage points in October, setting a new record within a month.

Gmarket, Mega Brand Week
Photo by Gmarket

Looking at sales by product category, all items showed clear sales growth. In particular, the food (23.4%), living & household (16.9%), and others & services (13.5%) sectors recorded high sales growth rates, which is attributed to various discount events centered around the e-commerce industry last month. The domestic retail industry launched numerous promotions from mid-last month in anticipation of the large-scale shopping festival 'Black Friday' held in November. Representative examples include Gmarket's 'Mega Brand Day' held from the 16th to the 22nd of last month, and Coupang's fashion, beauty, and health food promotions conducted throughout October. During this period, bulk and value-saving products including food were heavily promoted, and various travel products targeting the autumn season also increased.

An industry insider explained, "Typically, the e-commerce industry considers October to November, when large-scale discount events coincide with the U.S. Black Friday, as the peak season. Despite the frozen consumer sentiment due to high inflation and high interest rates, many consumers appear to have opened their wallets for these large discount events."

On the other hand, the offline sector, including department stores and convenience stores, showed overall sluggish performance as it was outpaced by online sales. Last month, the offline sector (department stores, large supermarkets, convenience stores, and SSM) recorded a sales growth rate of 0.5%, significantly lower than the 7.2% recorded in September. In particular, sales at large supermarkets and department stores decreased by 4.1% and 2.6% respectively compared to the same period last year, returning to a decline within a month. Convenience stores showed the highest growth rate in the offline sector at 6.8%, and SSM recorded a relatively decent 3.1%, but both fell sharply compared to September's 11.3%. By product category, food (2.0%) and services & others (5.2%) showed upward trends, while fashion & accessories (-2.3%) and children & sports (-4.6%) showed declines.

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