Pre-ordering, new shopping trend among Korean young consumers

[Source : W Concept]

Pre-order is becoming a thing among young consumers in South Korea who are becoming more conscious of value spending against fast fashion and express delivery at a time of an economic slump.

According to multiple sources from the fashion industry on Thursday, pre-orders are on a rise at fashion shopping platforms. A pre-order is a system in which usually small-scale manufacturers receive orders via platforms and make delivery later. The scheme allows manufacturers to plan demand ahead and avoid piling stock while consumers benefit from up to 80 percent discounts.

Pre-orders from January to October at Korean fashion platform W Concept have tripled from the same period a year ago, increasing at a much faster pace than whole 2021 when pre-orders increased 84 percent from the previous year. Pre-order demand for relatively expensive winter jackets or coats is especially high, according to W Concept.

With pre-ordering, merchants can save inventory management costs with lower inventory so they can give customers bigger discounts.

At W Concept, a designer brand oh L jacket costing 538,000 won ($412), is sold at 322,800 won. Other items purchased in advance are offered at least 10~20 percent and as much as 80 percent discount.

For such big discounts, pre-ordering consumers at W Concept are strictly restricted from order cancellation. At another platform Kakao Makers, 95 percent of consumers that make pre-orders actual purchase the items.

Ryan refrigerator pre-ordered via Kakao Makers [Source : Kakaocommerce]

At Kakao Makers, more than 5,400 brands have joined the platform-organized pre-order events since its 2016 inception and 2.32 million consumers purchased items through pre-ordering.

Pre-ordering also allows merchants to save costs through overseas original equipment manufacturer (OEM). It also can help reduce garment waste that heavily pollutes the soil.

Pre-ordering is more popular among young consumers because they now appreciate “value spending” more. Nearly 7 out of 10 pre-ordering consumers at W Concept are in their 20s and 30s.

“Young consumers are willing to wait for what they wish to buy,” said an unnamed official from the fashion industry. “They opt for good value for money amid rising prices.”

Pre-orders are available in a wide range of fashion categories from clothing to bags, shoes, and accessories. Luxury brands are also with the trend.

Luxury brand platform d.code is in contract with European luxury sales boutique and other clients it has secured distribution rights with and receive custom orders. Consumers can make pre-orders of popular brand items unveiled at overseas fashion week events at reasonable price.