The world of online shopping is undergoing a significant transformation. Traditionally, shopping platforms focused on keeping users on their sites for as long as possible. However, leading Korean companies are now pioneering a shift in strategy, leveraging advancements in AI technology to help customers shop quickly and conveniently. This article explores this major paradigm shift, highlighting specific examples from innovative Korean businesses.
The Old Strategy: Increasing Dwell Time
In the past, the goal of online shopping platforms was to keep users engaged on their sites for extended periods. The idea was that the longer customers stayed, the more likely they were to make a purchase. For instance, major shopping sites in Korea would offer a wide range of product options and engaging content, encouraging users to spend time browsing and comparing items. This approach was akin to the experience of window shopping in a physical mall, where customers leisurely explore different stores.
However, this strategy had its drawbacks. With too many choices, users often felt overwhelmed and experienced “decision fatigue,” which led them to abandon their carts without making a purchase. To counter this, platforms introduced recommendation features to help guide users, but these solutions had their limitations.
The New Strategy: Faster, More Convenient Shopping
This is where AI technology comes into play, fundamentally changing the shopping experience. One of the frontrunners in this new approach is the Korean fashion platform W Concept (더블유컨셉). This company has implemented an AI-powered personalized recommendation service that analyzes a user’s search history, clicks, and purchase patterns to suggest the most relevant products. For example, if a user searches for “summer dresses,” the AI will quickly present a curated selection based on their past preferences, allowing them to find the perfect item without having to sift through hundreds of options. Since introducing this AI-driven feature, W Concept has seen a 26% increase in conversion rates from June to July compared to the previous two months.
Cross-Category Recommendations: The Case of Ably (에이블리)
Another innovative example comes from the Korean platform Ably (에이블리), which has taken AI integration a step further by offering cross-category recommendations. This service suggests complementary products from different categories when a user is browsing or purchasing a specific item. For instance, if a user is shopping for office wear, the AI might also suggest beauty products or home office supplies that match the user’s style. This holistic approach not only enhances the shopping experience but also increases the likelihood of additional purchases. In fact, Ably reported that in July 2023, the number of customers buying across multiple categories grew by 80% compared to the same period the previous year.
Further Advancements in AI: The Example of Kurly (컬리)
Kurly (컬리), a leading online grocery retailer in Korea, is also harnessing AI to enhance the shopping experience. Kurly’s AI-driven recommendation system suggests related products based on what a user has added to their cart. For example, if a user adds milk to their cart, the AI might recommend complementary items like cereal or coffee.
Kurly has also introduced an AI-powered image search feature, which allows users to upload a photo of a product instead of searching by name. The AI then identifies the product or suggests similar items, making it easier for users to find what they’re looking for, even if they don’t know the exact name. This is particularly useful for discovering new or hard-to-find products, making shopping faster and more intuitive.
Reducing Consumer Effort
Industry experts note that when a platform offers too many options, users spend more time searching and are less likely to complete a purchase. AI helps to solve this problem by reducing the time and effort required to find the right products, thereby enhancing the overall shopping experience.
Korean companies are leading the charge in this new strategy, significantly improving the convenience and efficiency of online shopping. As this trend continues to spread globally, we can expect online shopping to become even more streamlined and enjoyable for consumers.
As AI technology continues to evolve, Korean shopping platforms are at the forefront of a major paradigm shift. Rather than trying to keep users on their sites for as long as possible, these platforms are now focused on helping customers shop quickly and easily. This change is set to make the future of shopping more convenient and efficient than ever before.
Atsushi's Life in Korea 