Summary: E-commerce companies are targeting the senior generation as significant market players, adapting to their increased use of digital platforms. Spending by seniors on online shopping and delivery apps has surged. Companies like Kakao Style and iHerb are offering personalized services and health-focused products to attract this demographic, seeing it as a new growth opportunity.
The e-commerce industry is focusing its efforts on attracting the senior generation.
As we enter an era of low birth rates and an aging population, middle-aged and older adults are emerging as significant players in the market.
According to industry reports on the 12th, the term "active seniors" is being used to describe the middle-aged and older generations who, with stable capital, actively engage in consumption and cultural activities and are quick to adapt to digital environments.
As the use of smart devices among seniors has increased, so has their spending on shopping malls and delivery apps. Data from KB Kookmin Card shows that among approximately 20 million credit and debit cardholders, the spending growth rate for those aged 50 and over increased by 17% in 2022 compared to the previous year, higher than the 11% increase seen in the 20-49 age group.
Specifically, for those over 50, online shopping and delivery app spending rose by 38% and 37%, respectively. In contrast, the increases for the 20-49 age group were only 13% and 7%.
According to Mobile Index, the proportion of members aged 60 and over on major e-commerce platforms like Gmarket, Coupang, and Tmon has increased compared to 2019, before the COVID-19 pandemic. The percentage of users aged 60 and above on Gmarket increased from 2.91% to 3.55%, on Coupang from 3.74% to 4.34%, and on Tmon from 2.17% to 2.64%.
Seeing the senior market as a blue ocean, companies are introducing various services to cater to this demographic. Kakao Style operates a fashion platform called "Posty," specifically targeting seniors over 40. They enhance customer experience by using big data to personalize recommendations. In a recent month (March 23 to April 22), the click-through rate (CVR) for personalized recommendation areas increased from 29% last year to 51% this year.
Reflecting the growing importance of health management among seniors, companies are offering health supplements and various nutritious foods. iHerb plans to introduce new health supplement products under its private brand, focusing on diet and health, and expanding its range to include vegan, gluten-free, and sugar-free products.
SSG.com regularly holds a specialized promotion in the food category called "Food SSG Sale." Earlier this year, they identified "CLASH" as the key health food trend: Cleansing (detox juices), Low Sugar & Calorie, Alternative Meat, Super Food, and High-Protein.
On May 9, Coupang held a special "99 Mart" event, offering up to 50% discounts on various foods for WOW (Coupang monthly paid membership) members . The event included Brand Days promotions featuring instant and health foods at reasonable prices, with limited-time deals and half-price offers on popular food brands.
An industry representative noted, "Middle-aged and older adults, who previously preferred offline shopping, have started to show interest in online shopping since the COVID-19 pandemic. To effectively target this demographic, who prioritize health and exhibit active consumption patterns, it is crucial to support them with personalized services based on continuous analysis."
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