'Department Store Gift Giving' Popular in Contactless Year-End... 340% Increase Compared to Last Year

52.8% of Imported Cosmetics Including Chanel and Dior

[Asia Economy Reporter Cha Min-young] As the year-end approaches, Hyundai Department Store's 'gift service' orders on the 'The Hyundai.com' mobile application (app) are surging. Analysts attribute this to the increased demand for replacing offline gatherings with non-face-to-face gifts due to strengthened social distancing measures.

Hyundai Department Store announced on the 22nd that from the 1st to the 20th of this month, the number of orders for The Hyundai.com gift service increased by 350% compared to the same period last year. This growth rate is ten times higher than the overall order growth rate of The Hyundai.com, which was 32%.

The proportion of product categories with high year-end demand has increased. The share of gift orders for imported cosmetics such as Chanel, Clarins, Dior, and L'Occitane rose to 52.8%, nearly double last year's 28.9%, and the share of gifts in the baby and children's product category also increased 1.5 times to 17.4% compared to last year's 11.1%.

The Hyundai.com gift service allows users to send gifts via text message (SMS) or KakaoTalk message even if they do not know the recipient's address, as long as they know the recipient's phone number or are registered as KakaoTalk friends when purchasing through The Hyundai.com mobile app. This service operates across approximately 1,200 brands located in 15 stores nationwide.

A Hyundai Department Store official stated, "The increase in orders for The Hyundai.com gift service is influenced by customers' desire to express their feelings through gifts, as this is the first year-end since the outbreak of COVID-19 earlier this year, and with the recent social distancing measures expected to reduce gatherings such as year-end parties."

Meanwhile, Hyundai Department Store is holding various events on The Hyundai.com until the 27th to capture year-end gift demand. During the event period, a 'Year-end and New Year Gift Exhibition' will be held, showcasing over 200 products including diaries, candles, and tableware. There will also be special exhibitions for imported cosmetics brands such as the French perfume brand 'Atelier Cologne' and the Italian cosmetic brand 'Santa Maria Novella,' as well as imported premium padding exhibitions featuring Moose Knuckles and Parajumpers. Additionally, 'The Money' reward points will be given up to 10% based on the purchase amount.