Level 2 Raised... e-Commerce "Stay Safe at Home, Shop Online"

Ahead of Black Week, Social Distancing Raised to Level 2
Fierce Competition Expected in E-commerce Industry
"Let's Capture the Year-End Peak" Domestic Products Also on Dramatic Sale

[Asia Economy Reporter Cha Min-young] Ahead of the year-round shopping peak 'Black Week,' the e-commerce industry is expected to benefit from the elevation of 'social distancing' to Level 2. Online shopping malls have launched marketing campaigns related to overseas direct purchases to capture the peak season of Black Friday (November 27), the largest shopping festival in the United States. Along with boosting consumer sentiment, general products are also being offered at unprecedented prices.

Overseas Direct Purchase Enthusiasts Take Note... Discounts and Shipping Benefits

According to the distribution industry on the 23rd, 11st is holding the 'Overseas Direct Purchase Black Friday' event until the 30th, selling popular direct purchase products at up to 70% off the regular price. The total number of discounted products is about 2.8 million. From health supplements and vitamins to large TVs from LG and Samsung Electronics, Moncler outerwear, Illy coffee machines, Staub pots, Burberry bucket bags, Maison Kitsun? sweatshirts, and Tempur toppers, limited quantities of special-priced items are released daily.

Koreacenter's Malltail is conducting the 'Free Shipping Festival' event, offering overseas free shipping services worth 1 billion KRW in celebration of this year's Black Friday. The event is held in partnership with seven famous overseas shopping malls, including Maje, LuisaViaRoma, American Eagle, Zappos, Equipment, and Lacoste. By going through Malltail's online cashback site 'Molly,' customers can also receive up to 12% bonus cashback when purchasing products from 21 stores such as Coach Outlet, Lurala, and Saks Fifth Avenue.

SSG.com, an online mall affiliated with Shinsegae Group, has been raising customer interest since the 16th, two weeks before Black Friday, with the 'SSG Black Shopping Festa' promotion. It is held twice by category, offering discounts of up to 85%. In particular, 'overseas direct purchase' products within SSG.com are also introduced. This includes new fall/winter (FW) products such as Ami clothing, APC bags, and premium padding from Nobis and Moncler. Every day at 9 a.m., a coupon pack of four types is issued to the first 10,000 customers. SSG.com plans to provide discount coupons of up to 9% for payments made with SSG Pay and up to 7% for general payments.

Domestic Shopping Malls Join In... Up to 50% Discount Coupons, etc.

Lotte ON will hold the 'Lotte ON Black Friday' event for five days until the 27th, offering 50% discount coupons for popular seasonal products to the first 3,000 customers every day at 10 a.m. Additionally, customers purchasing selected 120 products across eight categories?home appliances, food and daily necessities, luxury goods, clothing, beauty, sports and leisure, baby and children, and home living?can receive additional card discount coupons. Prada Saffiano flap women's long wallet is offered at a final benefit price in the 590,000 KRW range, Prada Saffiano Monochrome shoulder bag at around 1.79 million KRW, and Saint Laurent women's coat, classic python tab sneakers at around 400,000 KRW.

Market Kurly, a grocery shopping application, will hold Black Week for five days until the 27th, offering benefits such as up to 20 times increased point accumulation rates, up to 60% product discounts, free shipping, and an additional 5% discount coupon for special exhibitions. In addition to the 'Black Week Best Price Products' offered at the lowest prices during the event period, about 600 products including new home appliances and beauty products for customers preparing for winter, 'Kurly New Product Exhibition,' and 'Black Week Limited Big Sale Products' will be sold at discounts of up to 60%.

In the home shopping industry, KTH, which operates K Shopping, will give Shinsegae gift certificates when purchasing event target products for five days until the 27th. Target products include large home appliances such as LG Ultra HD TVs, LG CordZero ThinQ wireless vacuum cleaners, Winia Dimchae kimchi refrigerators, winter clothing such as Kashibadi full-skin fox hood field coats, Elle Sports check goose down, and the 'Jongkundang Lacto-Fit Probiotics 360-pack set' which includes an additional 60 packs only during the promotion period. Gift certificates worth 10% of the purchase amount will be given for cumulative purchases of 100,000, 200,000, 300,000, 500,000, and 1,000,000 KRW.

As the novel coronavirus infection (COVID-19) shows a resurgence in the winter season, offline businesses are struggling, while e-commerce is expected to experience another boom similar to last Chuseok. The government decided to raise social distancing in the metropolitan area, where half of South Korea's population is concentrated, to Level 2 starting at midnight on the 24th, judging that the spread of COVID-19 in the metropolitan area is serious. Park Neung-hoo, the first head of the Central Disaster and Safety Countermeasures Headquarters (CDSCH), said at a regular briefing on the 22nd, "Domestic COVID-19 has entered the full-scale 'third wave,'" adding, "It is a very serious and grave situation." He continued, "The rapid spread of community transmission centered on the metropolitan area is leading to nationwide expansion."