Online malls thrive despite recession


Below is the excerpted article from the Korea Herald..


Online malls thrive despite recession

Online shopping malls are projecting explosive annual sales growth, with estimates starting at 50 percent.

CJ Mall, an online CJ service arm of CJ Home Shopping, forecasts a revenue increase of 250 percent to 270 billion won by year-end, following a 232-percent leap during the first nine months this year.

Hmall, Hyundai Home Shopping's Internet shop, also expects a triple-digit increase, anticipating a 185 percent rise in revenue from last year to 173 billion won.

Interpark expects sales growth of 90 percent over 2002 to 400 million won. The online vendor posted its first quarterly surplus in net profit during the third quarter of this year.

LG eShop, Korea's largest online shopping mall by sales, expects a 50-percent year-on-year growth in sales to 420 billion won ($350 million).

The explosive online sales growth has been in sharp contrast to a slump in overall domestic spending.

As online shopping channels see increasing customers, retailers plan to bring greater focus on their businesses in the cyberspace.

Transactions through online shopping malls amounted to 601.7 billion won last October, surpassing the 600-billion mark for the first time, according to figures by the National Statistical Office.

Trading value of online transactions jumped 10.1 percent to 55.2 billion won compared with the same month last year.