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Fashion Platforms Expand into Food and Health Sectors to Become Comprehensive Shopping Destinations

From Hankyoreh · (4m ago) Korean Positive tone

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • Fashion platforms like Ably, Zigzag, and Musinsa are expanding into the food and health supplement sectors.
  • This diversification aims to transform them into comprehensive shopping platforms catering to a wider range of consumer needs.
  • The strategy leverages shorter purchase cycles for food and cosmetics to increase repeat purchases and enhance user loyalty through a 'lock-in' effect.

South Korean e-commerce platforms are rapidly evolving beyond their fashion and beauty origins, venturing into the lucrative food and health supplement markets. Companies such as Ably, Zigzag, and Musinsa are strategically broadening their product offerings, signaling a shift towards becoming all-encompassing lifestyle destinations for consumers, particularly the MZ generation.

Ably, an early adopter of this trend, has seen remarkable success since launching its food category in October 2022. Its recent 'Diet Management Week' event saw a significant surge in sales for low-sugar snacks (up 293%) and diet foods (up 249%), demonstrating a strong consumer appetite for health-conscious options. Ably's strategy focuses on becoming a 'mobile convenience store' for the MZ generation, recognizing that food and drink are increasingly viewed as extensions of personal style and taste.

As eating, beyond dressing and decorating, expands into the realm of 'taste,' we are strengthening our role as a mobile convenience store beyond fashion and beauty.

โ€” Ably officialExplaining the platform's strategy to cater to the MZ generation's lifestyle choices.

Zigzag, operated by Kakao Style, is also prioritizing its food category as a key growth driver. The platform experienced a 40% increase in food category sales last year and doubled its number of partner brands and products. Musinsa, while traditionally focused on fashion, is expanding its health and food sections to include protein supplements and low-sugar diet foods, even collaborating with brands like Namyang Dairy for exclusive product launches.

This diversification is a calculated move to capitalize on the shorter purchase cycles of daily necessities like food and cosmetics compared to fashion items. By encouraging repeat purchases and increasing user engagement, these platforms aim to foster a powerful 'lock-in' effect, ensuring customer loyalty. The blurring lines between different e-commerce sectors indicate a broader industry trend towards consolidation and the creation of comprehensive, integrated shopping experiences.

As the domestic e-commerce industry has gone through phases of open markets, social commerce, and vertical commerce, these boundaries are now blurring, leading to a reorganization into comprehensive platforms.

โ€” E-commerce industry officialAnalyzing the trend of e-commerce platforms consolidating into comprehensive service providers.
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Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.