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The graph above from L2’s Digital IQ Index: Beauty | Korea shows the fragmentation of the Korean e-tailer market. Even though 27 brands link to an average of nine third-party retailers, no single e-tailer has been able to dominate. Gmarket has the largest e-tailer share and owns 13% of the Korean market, while other well-known sites such as Amazon Korea and Lotte iMall have 1% and 3% shares respectively. The majority of market consists of lesser-known brands referred to in the graph as “others.”

Fragmentation decreases in the beauty category due to the fact that not all retailers are linking to third party retailers. Less than half hand of all Korean beauty brands and just six mass brands to e-tailers from their product pages. Beauty brands have clearly picked favorites; 85% of Index brands link to Lotte.com and 78% link to Lotte.com.

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