Online shops target baby boomers

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Online shops target baby boomers

Online retailers are stepping up efforts to attract baby boomers as they are emerging as a major consumer group in cyber space. Consumers in their 50s and 60s have increasingly turned toward online shopping malls, which were frequently visited only by people in their teens, 20s and 30s.

Baby boomers are the group of people who were born between 1955 and 1963 when the birth rate rose steeply after the 1950-1953 Korean War. They have played a key role in the country's industrialization.

According to Statistics Korea, the senior market was worth 44 trillion won in 2010 and is expected to increase by three times in 2020, recording 148 trillion won.

"They are enjoying freedom after retirement as they have both time and money," said a spokesman at an online shopping website.

"The country's major online retailers are focusing on marketing strategies to attract the baby boomer generation. Senior citizens have shown a higher level of store loyalty than the younger generation. If they are satisfied with their first shopping experience, they are likely to visit the mall consistently."

According to Korean fashion company Hyungji, the total online sales from baby boomers were up 100 percent in 2012 from a year earlier. The apparel maker owns such well-known brands as Crocodile Ladies, Chatelain and Bon. Fashion group Parkland has also seen an increase in online sales from the baby boomer generation, up from about 50 percent from last year.

To attract the baby boomer generation, the country's online shopping malls such as GS Shop, CJ Mall and AK Mall have launched various events and offered a wide range of products at reasonable prices.

GS Shop, Korea's No. 1 home shopping company, opened an internet shopping mall called Oahu last April, which specifically targets 50-something consumers. A wide range of goods are sold including food, clothes, accessories, shoes and cosmetics.

"For consumers aged 50 and over, existing internet shopping malls seem very complicated and difficult to use. We expect more of them to become familiar with the online procedure with our new website Oahu, said Jo In-chan, manager of Oahu.

According to the retailer, over 40,000 people visit the website on a daily basis and sales, of which 45 percent are from women in their 50s and over, have consistently increased for six months since the launch. For people unfamiliar with how to make online purchases, the company provides a telephone inquiry service, which includes making orders and payments.

GS Shop has also worked with cosmetics company Faceshop to launch the new brand The Golden Shop, which targets female consumers aged 40 and over. The cosmetics maker collaborated with Japanese retailer Aeon to meet the growing demand of skincare products designed specifically for the group of local consumers. It has already opened 391 stores in Japan.

CJ O Shopping, a home shopping company owned by CJ Group, has also grabbed the attention of the consumer group by launching a new clothing brand EclairByHui, which is designed for middle-aged women. According to the company, the total sales since the launch in 2011 hit the 30-billion won mark.

"My friend once told me about the convenience of online shopping so I tried it last month for the first time. I bought a skincare product at a lower price which included free delivery. I was very satisfied with my first online purchase," said Kim Mi-sook, a 58-year-old housewife living in Seoul. "But it is true that most in my generation prefers to buy stuff in actual stores because the whole internet thing still sounds complicated and confusing to them." The Korea Times, Oct. 23th, 2013