In an effort to tap into the lucrative livestreaming e-commerce market, YouTube is set to launch its first official shopping channel in South Korea on June 30. The move comes as YouTube seeks to diversify its revenue streams and counter the impact of reduced ad spending and competition from emerging platforms like TikTok.
The Share Prices of YouTube shopping competitors in South Korea are being affected
South Korea, known for its thriving livestreaming e-commerce market led by tech giant Naver, presents an ideal test market for YouTube’s entry into this sector. The global launch of the shopping channel in South Korea will serve as a pilot project, with plans to potentially extend its operation beyond the initially planned 90 days.
The shopping channel, primarily conducted in Korean, will feature over 30 prominent brands, including Samsung Electronics, LG Electronics, Baskin-Robbins, Dunkin’ Donuts, Cosme, and Puma. These brands will engage in live streaming sessions to showcase their products and interact directly with consumers, offering a unique (and ultra-modern) shopping experience.
Google Chief Business Officer Philipp Schindler highlighted the significance of this venture, stating that enabling people to shop seamlessly from their favorite creators, brands, and content holds immense potential. With YouTube’s vast user base and reach, the shopping channel has the potential to revolutionize the way people discover and purchase products.
Following the announcement, shares in Naver experienced a 4 per cent decline, while Lotte Shopping, a prominent retailer, witnessed a 3.3 per cent decrease. This demonstrates the impact of YouTube’s entry into the market and the potential disruption it poses to existing players.
Industry analysts at Jingbo Securities predict substantial growth in South Korea‘s live e-commerce market, with projections estimating a rise from 2.8 trillion won (~$2.1 billion) in 2021 to 10 trillion won (~$7.7 billion) in the near future. Currently, Naver dominates approximately 60 percent of the market share, but YouTube’s entrance is expected to promote competition and reshape the industry landscape.
As YouTube ventures into live e-commerce with its innovative shopping channel, it remains to be seen how this new endeavour will shape the future of online shopping in South Korea and potentially expand globally. The fusion of entertainment and commerce could redefine the consumer experience and open up new avenues for brands and creators to connect with their audiences.
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(Via)
