BUZZVIL BLOG

[Buzzvil Insight] When Do South Korean Users Make the Most Purchase

Mobile shopping is making a new vogue. According to “July Online Shopping Trends” published by South Korea’s National Statistics Office on September 4, with the expansion of early-morning shipping and mobile coupon service, the total amount of turnover for mobile shopping has recorded the historical high, 7.2 trillion KRW. The record is 21.5 percent higher than last year’s record and has made 64.5 percent of market share in the entire online shopping market of 11.2 trillion KRW.

As mobile shopping platforms are earning popularity, the range of channel options is broadened to meet the growing variety of demands. According to “Trend Y Wise Shopping Life” published by Lime of Lotte Members Research on August 24, an online survey of 5000 people aged 17~60 men and women revealed that the average person uses 5.7 mobile shopping platforms. On that account, the “Korea Advertising Index” by Korea Broadcast Advertising Corporation has projected that the majority of advertising channels will experience a downturn in November, while mobile advertising alone will be on the ascent.

Experts are pointing out that a burgeoning population of the single-person household- smart consumers who seek high cost-to-benefit and handy ways of shopping- has contributed to the growing market of mobile shopping. The picky consumers are, above all, in search of custom-made items tailored to one’s own liking. In light of these new trends, what kind of mobile advertisement marketing strategy should a marketer adopt?

#Figure out when they make the first purchase

First of all, it would be wise to figure out when the customers make the most purchase and then try to communicate with them. We conducted research with the largest domestic commerce company for two months and the result was that people made the most purchase between midnight and 1 am. Incidentally, we can presume that people enjoy shopping right before going to bed. Moreover, from 10 am to 12 pm and from 10 pm to midnight, followed as the most popular time to shop. The report, “Trend Y Wise Shopping Life” reveals that this year, there was a 5.5 percent increase in the number of orders placed between 9 pm to 11 pm. Back in 2016, from 1 pm to 4 pm used to be the hottest time to shop. Having mentioned this, the statistics confirm our presumption that more people are enjoying late-night online shopping.

#Lure them in for additional purchase

Now that we know the hot hours of online shopping, we need to come up with a way to induce repurchase. According to a study conducted by Buzzvil, 31% of consumers made a repurchase within the first hour of the initial order and 60% of them made a repurchase within the first 24 hours. Idiosyncratic analysis on each user can be made to provide the customers with individual-tailored suggestions on other items which will increase the turnover rate.

We discovered that targeting the existing user with the history of previous purchase log made 10 times bigger POI (the ratio between exposure of ad and actual purchase) than the users with no history of purchase. Moreover, we also discovered that relatively smaller commerce companies with fewer downloads had lower POI than the companies with stronger brand-power. Consequently, it seems like online shopping malls should also work on marketing strategies that raise brand recognition at the same time.