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America's 'Black Friday'.
Single's Day in China.
Shopping platforms have grown tremendously.
Here in Korea, there's a new player that's rising fast, reaching beyond the limits of
online shopping.
Won Jung-hwan shows how the social network service market is satisfying customers with
greater personalized options.
Social Network Services have become the fastest growing shopping platform, outperforming other
platforms like TV home shopping or internet shopping malls, and creating a buzz in South
Korea.
SNS is being used by firms, not just to share information about their products, but to also
sell their products directly, and promote them with special offers and events, like
one held last week through SNS involving over a thousand companies.
(KOREAN)
"The first edition of 12-12 day event was held to build consumer interest within the
SNS market and provide users with an opportunity to purchase quality products at a highly discounted
price."
SNS marketing uses social media platforms to connect consumers with products through
virtual communities, and allow firms to interact with customers and provide products tailored
to their needs.
The CEO of 'MONICA-ROOM', one of the first companies to use SNS marketing in Korea, says
that its big advantage over conventional marketing is the ability to adapt to customers' personalized
needs.
(KOREAN)
"We visit our customers' SNS pages, and we communicate with them as they receive our
news feeds.
If you compare SNS with general online shopping malls, SNS platforms can communicate one-on-one
with people, and this can lead to customized sales marketing to each individual"
Traditional online shopping platforms are often limited to 'telling' people what to
buy, with few mechanisms to obtain customer feedback.
But the open nature of SNS allows participants to share their views and feedback on brands,
products, and services.
(KOREAN)
"On traditional platforms, marketing is often viewed as brand-storytelling.
But now if you look at SNS marketing, it is more like 'brand-storydoing', meaning that
customers and viewers are actively taking part in selling a brand's products."
As customers can ask questions and voice their concerns directly to companies through social
media, they can make more informed purchasing decisions, leading to fewer returned products
or requests for refunds.
(KOREAN)
"As we continue posting reliable information, those who like our information visit our products'
websites.
And a relationship of trust between the buyer and seller forms within the online platform."
But there are also costs to marketing through SNS.
Since SNS is mostly about one-on-one communication, companies need to hire personnel to handle
social media interactions.
And the viral way information spreads through SNS doesn't always work in a company's favor...
(KOREAN)
"Since SNS marketing often engages through live platforms, any negative reviews or comments
regarding a company can suddenly spread to all those people who follow the company."
But at the same time, the 'live' nature of SNS can help create a positive buzz around
a product and drive social shopping among SNS users.
As followers of a product repost comments made by others, a small piece of marketing
can reach a large audience.
But companies can't sit back and be passive when it comes to social media.
(STANDUP)
"Nearly 2.5 billion people around the globe use some sort of social media.
But a large audience on social media does not always translate into strong sales figures.
The real key to success is increasing audience activity and engagement with the product"
SNS marketing is trying to break out from the sectors where it was first introduced,
like fashion and cosmetics.
Now it's possible to buy such varied items as agricultural products through social media
platforms.
By reducing distribution costs and allowing people to purchase fresh products, straight
from the source, SNS marketing is bringing convenience and efficiency to both companies
and consumers in South Korea.
Won Jung-hwan, Arirang News.
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