21-6-2023 (SEOUL) YouTube is gearing up to debut its first official shopping channel for live commerce in South Korea on June 30, according to Yonhap news agency. The move comes as the Alphabet-owned company aims to tap into the thriving live-streaming commerce industry in South Korea, which is dominated by tech giant Naver. With its sights set on becoming more “shoppable,” YouTube views the South Korean market as an ideal testing ground for its new venture.
The upcoming channel will operate in the Korean language and is initially planned as a 90-day project. It will serve as a live-commerce platform for various companies, with around 30 brands expected to livestream shopping content, as reported by Yonhap and other Korean media outlets, citing sources familiar with the matter. This marks YouTube’s first official shopping channel in any country, offering users a unique shopping experience within the platform.
While YouTube has declined to provide specific details about the features of the shopping channel, a spokesperson stated, “We may experiment with a variety of YouTube Shopping features from time to time.” The company recognizes the potential in facilitating seamless shopping experiences for its users, aligning with Google’s Chief Business Officer Philipp Schindler’s previous comments in February about the significance of making it easier for people to shop for products related to the creators, brands, and content they admire.
The news of YouTube’s entry into the live commerce space has impacted the stock prices of existing players in South Korea. Naver saw its shares fall by 4% on Wednesday morning, while retailer Lotte Shopping experienced a 3.3% decline, compared to the broader market’s 0.5% drop.
The live commerce market in South Korea is expected to expand significantly, reaching 10 trillion won ($7.7 billion) this year, up from 2.8 trillion won in 2021. Currently, Naver holds approximately 60% of the market share in this rapidly growing sector, as projected by Kyobo Securities.
