Overseas direct purchase – Butterfly Effect
Overseas direct purchase is thought to have huge
influence like butterfly effect on the future trend of distribution industries.
According to Korean Customs Service and Korean Consumer Agency, the direct
purchase from overseas is increasing exponentially, from about 3,180,000 cases
in 2010, 5,000,000 cases in 2011, 7,200,000 cases in 2012, and to 11,160,000
cases in 2013. The overseas direct purchase market has reached 1 trillion won,
and it will soon reach 2 trillion won in no time.
The consumers still want to directly purchase
products from overseas even with accepting inconveniences such as long delivery
period, delivery agencies, shipping fees, and customs duty that only the
overseas direct purchase has. Along that the government recently presented a
plan of minimizing the steps of import declaration in order to encourage the
overseas direct purchase. And the boom will only increase from now on.
What kind of changes can this new trend – overseas direct purchase – bring into the distribution market?
First of all, when the overseas direct purchase
becomes more active, department stores, direct import shops, home appliances
stores, and traditional trading companies are more likely to head for a
downfall. In the case of the department stores, especially the foreign fashion
brands’ sales are decreasing continuously. For example, 6 of the Ralph Lauren
Kids stores were closed down just in last year.
On the other hand, home shopping and superstores are
in better conditions. In order to actively counteract with this change in the
consumption trend, the home shopping companies and superstores are enlarging
their parallel imports. Among the superstores, E-Mart is spotlighted because of
the highest sales scale on the directly imported products. Online shopping
malls are also drawing the consumer’s attention by strengthening their direct
import systems. The ‘One-on-one purchase request’ on 11 Street and the ‘Global shopping center’ on G-Market are also the services that reflect
the changes in the distribution system.
Likewise, the overseas direct purchase started
from small scale and now it touched off a boom in the overall distribution
market like butterfly effect. This will soon lead to distribution market
revolution after forming a new distribution channel. As the overseas direct
purchase market grows, not only the distribution market but also the credit
card systems for smooth overseas purchase and the delivery systems for the fast
and safe delivery will be improved. Like these, we may have to give more
attention to this new trend, the overseas direct purchase.
Edit By SHJ
※ This article appears in the 2nd edition of TREND READER magazine.
- Original article
Post a Comment