Rapidly Growing Cyber Shopping Malls

Cyber shopping malls on the Internet are growing rapidly in Korea.
As the number of Korean netizens exceeds 3 million, consumers who frequently buy products without venturing out of their offices or homes are abruptly increasing. By simply connecting to sites with cyber shopping malls, they can avoid avoid the inconvenience of crowded department stores and the hastle of finding specialty stores.
Market sources said on April 12 that the cyber shopping mall 'constructed' by Samsung Corporation, which adopted a non-membership system unlike the established distribution stores (such as Shinsegae and Hyundai department stores), reaches over 100 million won daily in sales.
Samsung Corporation recently joined hands with 'Amazon', the world-wide book distribution company and is driving forward 'the internet bankbook' with Hanbit Bank.
Lotte Department store, the first corporation in Korea to open a cyber shopping mall, totaled 2.545 billion won in sales in 1998 with membership reaching 135,000, a 108.6 percent increase over the 1.22 billion won sold in 1997(65,000 members).
Lotte will increase its product-line to 3,000 from 2,000 to reach the goal of 4 billion won in sales and 140,000 members this year in order to remain the industry leader.
Shinsegae Department Store, which opened its Internet site on July 1, 1997, had 70,000 members and sales of 1 billion won in 1998. It has set a goal of 2.5-3.0 billion won in sales and 120,000 members this year.
Hyundai's cyber shopping mall opened in February 1998 and recorded sales of 500 million won last year, but it hopes to reach 1.5 billion won in sales, with 100,000 members in 1999.
Market sources said, 'Distribution companies are competing in establishing cyber shopping malls to win over the increasing number of 'net' consumers. Opening a shop without having to pay rent or hire a large staff are other merits.'

Jooan Kang : jooan@joongang.co.kr