'Social Distancing' Creates New 'Solo' Shopping Experience

Shopping Trends Changed by COVID-19

Increased Sales of Health Products and Food

Stockpiling Bulk Food Items

Consuming Products Tailored for Staying at Home

Purchasing Online and Contact-Free

[Asia Economy Reporter Lim Hye-seon] While consumers increased contact-free shopping in the first quarter of this year, spending in the dining and travel industries sharply declined. The spread of the novel coronavirus infection (COVID-19) and the resulting 'social distancing' becoming a daily routine influenced changes in consumption patterns.

◆Online Purchases Surge Across All Age Groups= On the 31st, data service company Lotte Members analyzed customer spending composition (wallet share) for the first quarter of this year (January 1 to March 29) based on L.Point transaction data. The share of e-commerce sectors rose by 3.2 percentage points compared to the same period last year. Meanwhile, the distribution sector's share fell by 0.9 percentage points. Notably, offline sales at retail stores dropped by 34.7% compared to the previous year. Shares in dining and lodging/travel/transportation sectors also decreased by 1.1 and 0.8 percentage points, respectively.

By gender, the proportion of e-commerce spending in women's total expenditures increased by 4.3 percentage points compared to the first quarter of last year, while the increase for men was smaller at 1.5 percentage points. Additionally, women reduced their spending shares more than men in retail stores and lodging/travel/transportation, whereas men cut their dining expenditure shares more than women. By age group, those in their 20s and 30s reduced spending shares in dining and lodging/travel/transportation sectors. People in their 40s and 50s increased their spending shares in medical, insurance, and hygiene sectors.

In e-commerce, spending shares increased across all age groups. By product category, sales of general over-the-counter products such as health masks surged by 341.9% compared to the same period last year. Sales of hand and foot care products like hand sanitizers rose by 176.7%, and electronics and video games increased by 137.3%. Conversely, outdoor activity-related products such as ball field sports equipment and massage/thermal therapy products, which require reduced interpersonal contact, decreased by 44.4% and 29.8%, respectively.

Also, as mask-wearing became routine, sales of color cosmetics such as lipstick, lip liners, and eyeliners noticeably declined. There was little change in sales of basic cosmetics like essences and serums, while lip gloss sales increased by 4.7%.

◆New Shopping Trend 'H.O.L.O'= E-commerce company eBay Korea selected the shopping keyword 'H.O.L.O' reflecting a new trend where consumers focus on Health, consume Oversize products, continue Life at home, and enjoy Online Shopping. Analyzing first-quarter sales data from Gmarket and Auction, eBay Korea reported a sharp increase in sales of health-related products and bulk items. During this period, total sales of health and medical products rose 148% year-on-year. Specifically, sales of respiratory and sleep health products including masks tripled (222%), and sales of health measurement devices such as thermometers more than doubled (113%).

Sales of senior care products also increased by 64%. Nutritional supplements and red ginseng, popular for boosting immunity, led to an 18% rise in health food sales. An unexpected boom in health tonics also occurred. Sales of health tonic-related products like eel (65%), Samgyetang (Korean ginseng chicken soup) (55%), and abalone (33%) increased.

As going out became difficult, demand for bulk products also grew. Sales of bulk processed foods including instant rice (84%), canned goods (21%), and snacks (22%) rose by 29%. Bulk fresh foods such as kimchi (12%), dried seafood (232%), and mixed grains (11%) also saw sales growth of 13%. This trend was even more pronounced in daily necessities. Bulk daily necessities increased overall by 47%, with bulk detergents/cleaners (48%), toilet paper and wet wipes (61%), and oral care products (16%) all showing growth. Bulk childcare products centered on diapers (142%), formula (275%), and baby food/snacks (287%) increased sales by 20% overall.

Demand for digital appliances related to telecommuting and home study also rose. Sales of laptops and monitors increased by 11% and 12%, respectively, compared to the previous year. PC cameras (53%), mice (64%), and bed trays (11%) also showed upward trends. Toys for children at home, such as blocks (38%), role-play sets (10%), and character/fashion dolls (9%), followed the same pattern. With the expansion of contact-free consumption, e-coupon sales increased by 63%. Additionally, sales of pet products rose by 10%, while imported luxury goods and branded clothing increased by 37% and 23%, respectively.

Jung Ran-sook, head of data analytics at Lotte Members, said, "COVID-19 has dealt a direct blow to offline distribution, dining, lodging, and travel industries. As the situation may prolong, it is necessary to expand contact-free services and prepare online and mobile products to explore various countermeasures."