Big Spenders in the Fashion Industry Aged 50s and 60s Enjoying Online Shopping

The Handsome.com and SI Village, etc.
VIPs Rapidly Rising with Soaring Membership and Sales

[Asia Economy Reporter Yujin Cho] The 50s and 60s age group, who were major customers of home shopping, are emerging as VIP customers in e-commerce.

According to fashion company Hansome on the 16th, the number of members aged 50-60 among The Hansome.com and H Fashion Mall members increased sharply by 113% this year compared to the same period last year. Last year's growth rate was 25%, meaning the number of new customers in their 50s and 60s nearly quadrupled.

Fueled by this high growth, The Hansome.com's sales increased by 67% compared to the same period last year (as of the end of September), already surpassing last year's total sales (110 billion KRW). The performance is also positive. Among Hansome's VIP customers, the sales growth rate of those in their 50s and 60s was 160%, higher than the overall VIP sales growth rate of 112%.

During the same period, the number of members aged 50-60 at SI Village, an online mall operated by Shinsegae International, increased by 103%. This is nearly double the 55% growth rate in membership from 2018 to 2019.

An SI Village official explained, "SI Village significantly raised its awareness by conducting the country's first sale of stock duty-free goods last June, and at that time, not only young customers in their 20s and 30s but also middle-aged customers over 50 greatly increased."

SI Village holds many high-end brands popular among loyal customers in their 50s and 60s, so the usage rate among middle-aged and older customers is steadily increasing.

Samsung C&T Fashion Division also saw the proportion of online customers aged 50 and above remain almost flat, from 11.6% in 2018 to 11.8% last year, but this year it increased by 2.7 percentage points to 14.5%.

Samsung C&T Fashion Division operates its own online mall, SSF Shop, which runs categories including fashion, beauty, and lifestyle. Due to the expansion of online business amid the spread of COVID-19, sales have increased by about 52% this year (as of the end of September).

A fashion industry official said, "Since the outbreak of COVID-19, consumers in their 50s and 60s have massively entered online channels," adding, "Because they consume many high-end brands, they are rapidly emerging as VIPs online as well."