Why 'Practical' Gifts Are Popular This Year for the Holidays

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As the Lunar New Year approaches this year, 'practical' gifts have gained popularity. Instead of traditional gift sets, sales of small-packaged or practical products that include multiple items in smaller quantities have increased. This trend is interpreted as reflecting the rise of single- and two-person households and a tendency toward rational consumption.

According to a survey by TMON on gift set sales trends over two weeks until mid-January ahead of the Lunar New Year, the proportion of purchases of products priced under 30,000 KRW reached 65%, an 11 percentage point increase from last year (44%), surpassing half of all purchases. Compared to 33% two years ago, this figure has nearly doubled. Among these, gift sets priced between 20,000 and 30,000 KRW accounted for 27%, ranking first, followed by 10,000 to 20,000 KRW at 23%, and under 10,000 KRW at 16%. This indicates that affordable, practical gifts are gaining popularity.

E-commerce companies also contributed to the increase in sales of practical holiday gifts by holding Lunar New Year gift promotions featuring products with significant discounts. TMON ran the '2020 Seollal' event until the 27th, offering up to 87% discounts on about 2,000 products needed for Lunar New Year preparations, including ceremonial items, kitchenware, and gift sets. Except for some products, about 95% of items were shipped free of charge.

Coupang also opened a '2020 Seollal' themed section ahead of the holiday. It operated until the 24th, categorizing all related products from Lunar New Year table preparations to gifts into sections such as Gift Hall, Preparation Hall, Travel Hall, and Brand Hall. The Gift Hall offered a variety of Lunar New Year gift-related products at reasonable prices, including meat, fruits, electronics, health supplements, and cosmetics. The Preparation Hall covered ceremonial items, kitchenware, and hanbok, while the Travel Hall featured travel products for customers traveling during the Lunar New Year holiday, as well as related items like suitcases and cameras. Additionally, various special categories were introduced to enhance customer convenience, along with various discount benefits.