Fashion Struggling in Department Stores, 'Performing Well' on Home Shopping

More People Choose 'Remote Control Shopping' Over 'In-Person Shopping'
Fashion, Electronics, and Health Foods Also Rank High in Sales

[Asia Economy Reporter Lim Hye-seon] Since the resurgence of the novel coronavirus infection (COVID-19), fashion and cosmetics product categories have been performing well on home shopping channels. This contrasts with the sharp decline in sales at offline stores, including department stores. As people spend more time at home, many have shifted from 'in-person shopping' to 'remote control shopping.' Home appliances and health supplements also ranked high in sales.

According to the distribution industry on the 13th, among the top five best-selling items on Lotte Home Shopping from the 30th of last month to the 9th of this month, four were fashion products. The best-selling product was from the fashion brand 'Laurel.' During this period, Laurel recorded 68,000 orders and sales of 5.2 billion KRW. Laurel was the top popular fashion brand on Lotte Home Shopping last year. Since its debut last year, it has surpassed a cumulative order amount of 120 billion KRW. Fashion brands LBL and Paul & Joe also sold 4 billion KRW (40,000 orders) and 1.8 billion KRW (30,000 orders) worth of products, respectively. Sales of Georges Rech also reached 1.8 billion KRW (26,000 orders). Compared to the more than 30% decline in women's fashion sales at department stores during the same period last year, this is an encouraging result.

Kim Ji-yeon, team leader of fashion apparel at Lotte Home Shopping, explained, "It is analyzed that customers who felt burdened by offline shopping due to the resurgence of COVID-19 flocked to home shopping. The stereotype that home shopping products are 'cheap' is changing, and each home shopping company is offering high-quality, reasonably priced exclusive fashion products, leading to continued customer purchases."

At GS Home Shopping, the cosmetics category performed well. Age 20's Essence Cover Pact and Centellian24 Skincare each recorded sales of 600 million KRW and 500 million KRW. Burmas comfort shoes also sold 400 million KRW worth.

At Hyundai Home Shopping, excluding masks (2.02 billion KRW), home appliances and health supplements ranked high in sales. The order amount for the Samsung Viscop refrigerator broadcast on the 5th of last month was 950 million KRW. During the same period, total sales of home appliances increased by 90% compared to the previous year. The order amount for Hiian organic noni juice, broadcast on the same day, also reached 890 million KRW. Due to increased demand for health drinks, it exceeded the target by more than 40%. Homeschooling products such as Ebvest middle school learning and convenient meal Cheonha Ilmi Galbitang sold 930 million KRW and 550 million KRW worth, respectively. These amounts exceeded their targets by 50% and 40%, respectively.

At CJ O Shopping, the top five sales were all interior and home appliance products. The LG Z:IN White Line Zero S5, which ranked first in sales, is a window product that saw a surge in customer demand due to the recent continuous rainy season and typhoons. In the broadcast on the 8th, over 2,000 customer orders were received, more than five times the target. The Seragem Master V4, a spinal heating medical home appliance popular as a gift for parents during Chuseok, ranked second in sales. The kitchen built-in type water purifier LG PuriCare Dual Water Purifier, LG DIOS Easy Ice Magic Space, and Samsung Electronics home appliance rental package, which allows customers to choose desired products for rental, ranked third to fifth in sales.

An industry insider from the home shopping sector said, "Considering the increase in customers refraining from going out due to the prolonged COVID-19 situation, we are increasing the lineup centered on fashion, health, and home appliances. In the short term, it is expected that movement during the Chuseok holiday will decrease, which is anticipated to relatively benefit home shopping sales."