This year, where and how you shop will tell you what kind of a consumer you are.

Amid the long-standing frozen consumer sentiment, retailers are expected to diversify their channels in order to satisfy people with different income levels and needs.


Outlets surging

2014 was a harsh year for the nation’s traditional retailers.

According to ETrade, a stock trading firm, the domestic department store market ― worth around 29.8 trillion won ($28 billion) in 2013 ― is expected to experience slow growth this year and beyond.

And more department stores are expected to branch out into other types of retail outlets, including discount outlets and shopping malls.

According to industry insiders, the country’s largest retailers ― Lotte, Shinsegae and Hyundai ― are planning to open nine more fashion-oriented “premium outlets” within three years across the country. Their facilities will have shopping and dining facilities and some may even include accommodation and cinemas.

“The good thing about department stores having an outlet is that you can get away with the inventories. It is a huge cost reduction,” said Chung Mi-sun, a marketer for a consumer goods company. 


Going mobile

With more than 40 million smartphones in operation here, the mobile shopping trend is expected to become stronger than ever, observers say.

According to the Korea Online Shopping Association, 13.1 trillion won in sales was generated through mobile devices including smartphones in 2014 and the figure is expected to reach 20 trillion won this year. The Korea Chamber of Commerce estimates that 4 out of every 10 Koreans have already shopped using a mobile device.

Along with traditional retailers like Shinsegae or Lotte, TV shopping channels and online shopping websites have also been reinforcing their mobile services to keep up with the changes.

GS Home Shopping has recently adopted a “mobile first” strategy in a bid to induce consumers to shop more with their smartphones, while Hyundai Home Shopping has streamlined its mobile website to help customers shop more easily. 


Going abroad

Some industry players are looking overseas for business opportunities. Because retail requires know-how and an understanding of local situations, retailers have been rather reserved about going abroad, but some are braving unfamiliar conditions to search for the next gold mine.

Lotte, the country’s largest retailer, has recently announced plans to open 20 department stores overseas including Lotte Diamond Plaza in Ho Chi Minh City, Vietnam.

By Bae Ji-sook (baejisook@heraldcorp.com)