Consumers are growing more comfortable buying home appliances and electronics online, a category long seen as requiring a visit to a store. As product information becomes easier to compare on the internet and platforms strengthen quality guarantees, delivery and installation, and after-sales service, the shift of appliance spending to online channels is accelerating.
Sales of smart devices and digital accessories on SSG.com rose 14% in the first half of this year from a year earlier, the retailer said on the 20th. Cameras and peripherals gained 12% and audio equipment 10% over the same period, while sales of in-car digital products jumped 46%. Online demand is also expanding at major e-commerce platforms including Coupang, Gmarket and 11st across a wide range of items, from cleaning appliances such as robot vacuums to kitchen appliances including refrigerators and rice cookers, as well as beauty devices.
The growth is evident in industry data. Appliance and electronics sales at online channels rose 11.4% from a year earlier, according to a July report on sales trends at major retailers released by the Ministry of Trade, Industry and Energy. That was the second-highest growth rate among all product categories, after services and other items at 17.5%. Appliances and electronics accounted for 18.2% of online sales, the second-largest share after food at 30.5%.
Televisions, refrigerators and other appliances were long bought in physical stores because of their high prices and because many shoppers wanted to check performance and size in person. That is changing as specifications and prices become easy to compare online and as delivery, installation and after-sales service improve.
Price competitiveness is another draw. Shoppers can compare prices and specifications across domestic and foreign brands alongside coupons, card discounts and other benefits. A rise in social media review content showing products in actual use has also reduced the need to inspect items in person.
"In the past, there were significant concerns about quality or breakdowns when buying appliances and electronics online, but over time reliable data such as purchase reviews has accumulated," an official in the retail industry said. "Demand for appliances and electronics is steadily rising on e-commerce as well."
E-commerce operators are strengthening related services to capture that demand. AliExpress, the overseas e-commerce platform, is expanding quality guarantee services for appliances and electronics, offering full refunds if branded products turn out to be counterfeit. Coupang recently extended its Coupang Safe Care program beyond appliances to furniture, adding free warranties and damage insurance.
"Online channels can now provide sufficient product information and post-purchase service, so demand for electronics on e-commerce is rising," an official in the e-commerce industry said. "The advantages in product comparison and pricing are growing, so we expect related demand to keep expanding."
