[Asia Economy Reporter Yujin Cho] As social distancing measures have been strengthened, fashion companies have changed their year-end sales strategies. They had hoped to make up for the sharply decreased performance this year with the year-end shopping boom, but concerns have grown that offline sales will become difficult due to the re-tightening of social distancing. The industry expects suppressed offline demand to shift online and is making every effort to capture the peak season by preparing unprecedented online promotions.
According to the related industry on the 25th, Samsung C&T Fashion Division is planning new online promotions such as 'Super Week, Winning Roulette, Hot Deal' through its own online mall SSF Shop until the end of this year. The outlet Super Week, held for the first time this year, is a coupon event that offers an additional 10% discount on existing outlet products, which are already discounted by up to 70-80%, in the outlet section of SSF Shop. The event will be held from the 30th of this month to the 6th of next month. Separately, from the 14th to the 20th of next month, a daily hot deal event with discounts of up to 70-80% by brand will be operated. Representative brands such as Beaker, 8Seconds, Beanpole, and Tory Burch will participate. A roulette event that guarantees 100% winning benefits to all SSF Shop members is also planned.
As the strengthening of social distancing leads to increased online shopping demand, online purchases are expected to grow even during the year-end. Samsung C&T Fashion Division said, "In addition to the regular promotions held at year-end, we are preparing three new promotions exclusively online this year." After the announcement of the upgrade to social distancing level 2, SSF Shop saw an increase in online traffic over the past weekend, resulting in a daily sales growth of about 5% on the 22nd compared to the previous week.
Shinsegae International is also holding a large-scale event for the first time this year called 'Black Week,' targeting the Black Friday season, offering discount coupons, season-off sales, and special price events. Additionally, aiming at the increased demand for year-end gifts, it launched the 'Gift Service' within its own online mall SI Village. A Shinsegae International official said, "We expect the proportion of non-face-to-face online shopping to grow even more due to the re-tightening of COVID-19 measures," adding, "We plan to provide unprecedented special exhibitions and various discount benefits through our own online mall."
Outdoor brand Nepa is also planning its first online promotion this year called 'Duo Paris, Arte Collection Kakao Plus Friend.' For one month until the 19th of next month, if you add Nepa on the Kakao Plus channel, you can receive coupons offering discounts up to 100,000 KRW for Duo Paris and up to 250,000 KRW for the Arte Collection. Additionally, both online and offline, through the 'All Fall/Winter New Down Festival,' a promotion will be held offering up to 45% discounts on some steady seller products including short down, long down, lightweight down, and heavy down. The event will run for one month from the 29th of this month to the 31st of next month.
The industry is concerned that if the social distancing level 2 measures, which are in effect until the 7th of next month, are extended, it will dampen efforts to capture the year-end peak season. A fashion industry official said, "It is inevitable that the fashion industry’s performance will be hit by the COVID-19 level upgrades in November and December, when the year-end peak season sales should be in full swing," adding, "We plan to focus on online sales at year-end and make every effort to capture demand through large-scale promotions and discount events."
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