Cheongdam-dong Daughter-in-Law Also Shopped Online During COVID-19... Luxury Sales Increased by 36%

[Asia Economy Reporter Seungjin Lee] Due to the impact of the novel coronavirus infection (COVID-19), consumer interest in contactless consumption has increased, leading 'big-spending' customers who used to purchase premium products at major offline stores such as department stores to turn to online shopping.

On the 22nd, eBay Korea analyzed the average purchase unit price per person by item category from March to May on Gmarket and Auction, operated by eBay Korea, and found that the unit price significantly increased in most categories.

In particular, the unit prices of essential grocery items that are repeatedly consumed all rose. During the same period, the average purchase unit price for food increased by 10%, and daily necessities increased by 9%. This means that if customers added 1,000-won apples to their online shopping carts last year, this year they chose 1,100-won apples.

Most other categories also showed an increase in the unit purchase price per item. For hobby products, the unit price increased by more than 15% during the same period. Additionally, ▲interior (10%) ▲fashion (8%) ▲home appliances (4%) and most other categories sold more expensive products than last year.

This is interpreted as premium consumption, which had been mainly offline, massively shifting to online shopping after COVID-19. In fact, demand for luxury goods through online shopping surged during the same period. Sales of imported luxury goods increased by 36% compared to the same period last year. Popular detailed categories included ▲luxury watches (55%) ▲luxury cosmetics (26%) ▲jewelry sets (39%).

Moreover, the increase in customers in their 50s and 60s with economic power also contributed to raising the purchase unit price. Looking at the purchase share by age group during the period, the 50s and 60s accounted for 21%. Compared to about 15% during the same period last year, the proportion of middle-aged and older customers significantly increased within a year.

Lee Jung-yeop, Head of Marketing Division at eBay Korea, said, “Many consumers who prefer premium products hesitated to shop contactlessly due to product reliability concerns. However, after COVID-19, they inevitably experienced online shopping, felt satisfaction beyond expectations, and have now developed into loyal customers.”