Popular Home Cooking Appliances... Sales Increase Due to High-Efficiency Appliance Rebate Program and COVID-19

[Asia Economy Reporter Minyoung Cha] The new coronavirus (COVID-19) concerns and the implementation effect of the ‘Top Efficiency Home Appliance Purchase Cost Rebate System’ have combined to boost the popularity of home meal appliances.

According to Lotte Department Store on the 7th, the sales of the kimchi refrigerator brand ‘Winia Dimchae’ in March increased by 63% compared to the same period last year. The sales of the brand ‘Cuckoo Electronics,’ famous for electric rice cookers, rose by 13.9% compared to the previous month. In particular, sales of Cuckoo Electronics’ flagship product, the ‘Twin Pressure Electric Rice Cooker,’ increased by 47% compared to the previous month and by 40% compared to the same period last year.

The reason why the growth of kimchi refrigerators and rice cookers stands out in department stores is that department stores mainly sell high-efficiency products eligible for benefits under the ‘Top Efficiency Home Appliance Purchase Cost Rebate System.’ All kimchi refrigerators sold at Lotte Department Store’s ‘Winia Dimchae’ stores are premium products with energy efficiency grade 1, and ‘Cuckoo Electronics’ actively supports the purchase of high-efficiency appliances by providing gift certificates when purchasing top-efficiency products at Lotte Department Store.

The recent popularity of kimchi refrigerators and electric rice cookers among home meal enthusiasts is analyzed to be due to the competitive premiumization of these two appliances, which has expanded their uses. In fact, kimchi refrigerators are gaining attention as ‘sub refrigerators’ with various storage compartments beyond just storing kimchi. Kimchi refrigerators maintain a temperature around minus 1 degree Celsius, making them suitable for keeping meat, fruits, and wine fresh, thus fitting the role of a sub refrigerator. Electric rice cookers have also become essential for home meal enthusiasts by functioning as multi-cookers capable of handling various recipes.

Winia Dimchae’s representative kimchi refrigerator is the large-capacity premium model ‘CDQ57DVNAS.’ It is the largest capacity (551L) among Dimchae kimchi refrigerators and features bio-technology that enables long-term food storage. This product is priced at 3.74 million KRW. The Cuckoo Electronics ‘6-person IH Rice Cooker Twin Pressure’ model, which supports various home meal recipes, costs 538,000 KRW. Both products are energy efficiency grade 1 and offer a 10% rebate and a 5% gift certificate benefit based on the purchase amount when bought at Lotte Department Store.

Yoon Hyuncheol, Chief Buyer (Product Planner) of Home Appliances at Lotte Department Store, said, “Due to concerns about COVID-19, demand for home meals has increased, and combined with the high-efficiency appliance rebate, more customers purchased kimchi refrigerators and electric rice cookers in March.” He added, “Especially since department stores focus on high-efficiency premium products, more customers are buying kimchi refrigerators and electric rice cookers at department stores.”