Large Mart Lunar New Year Pre-Order Launched
Emart Expands 'Phone Order Service' to All Stores
SSG.com Offers 17,000 Items Including Mart and Department Store Products
Lotte Mart Limited Sale of Premium Gift Sets
Homeplus Adds 3 Luxury Beef Gift Sets
Home Parties Increase Due to Ban on Gatherings Over 5 People
Retail Industry Sees Rise in Wine Discounts and Ready-to-Eat Food Delivery
[Asia Economy Reporter Seungjin Lee] As the government is strongly considering raising social distancing to level 3 following the ban on gatherings of five or more people due to the spread of the novel coronavirus infection (COVID-19), the distribution industry has early started pre-order sales of Seollal gift sets for the year-end and New Year holidays. Along with this, they are focusing on selling wine and ready-to-eat meals targeting the increased demand for home parties, striving to reduce the decline in sales.
Distribution Industry: "Let's Capture Non-Face-to-Face Demand"
On the 23rd, the three major discount stores simultaneously launched pre-orders for Seollal gift sets by mobilizing all online channels. During last Chuseok, the proportion of pre-order sales for gift sets exceeded 50%, with more people choosing gifts online than visiting offline stores, making it characteristic to offer various types of non-face-to-face services.
Emart is expanding its 'phone order service' to all Emart stores. If customers order products by phone from home, store staff visit them directly to provide consultation and payment services. The 'Emart website bulk registration service for delivery addresses,' first introduced last Chuseok, will also continue. Shinsegae Department Store and Emart are accepting gift set reservations through their stores while showcasing a total of about 17,000 gift sets on SSG.com, focusing on non-face-to-face gift purchasing demand.
Lotte Mart is also conducting pre-order sales for Seollal gift sets through offline stores and Lotte On until February 1 next year. Homeplus is offering a total of about 530 products through pre-order sales, which is a 20% increase compared to last year.
Popularity of Premium Gifts
The proportion of high-priced premium products, which were very popular last Chuseok, is expected to increase further. Lotte Mart increased the proportion of health-related gift sets and premium gift sets priced over 100,000 won by 10% compared to last Seollal in response to the COVID-19 situation. They are also offering limited quantities of premium products such as the highest-grade eco-friendly Korean beef sets and fruit sets containing Shine Muscat grapes, apples, pears, and Hallabong oranges all at once. They are introducing 'Sanjittuksim' sets, which are producer-identified products, and sets made with agricultural products certified under the Good Agricultural Practices (GAP) system.
During the pre-order sales period for gift sets last Chuseok, Emart saw a 42% increase in the sales proportion of premium gift sets priced over 200,000 won compared to the previous year. Reflecting this, it is known that the proportion of premium gift sets has been increased during this Seollal pre-order sales period. Homeplus also started pre-order sales on the 17th, and sales of Korean beef gift sets increased by more than 48% compared to last Chuseok, leading to the addition of three types of 'Luxury Myeongseon Beef Gift Sets.'
Increase in Home Party Products Due to 'Stay-at-Home'
With the ban on gatherings of five or more people, demand for home parties during the year-end and New Year holidays has increased, prompting preparations for this as well. From January 1 to 14, the proportion of wine sales in Emart's liquor sales was 27.7%, surpassing beer and soju. At CJ ENM O Shopping Division’s TV broadcasts, sales of home meal replacements (HMR) this month rose by 80% compared to the same period last year, and demand for home parties and home-cooked meals is expected to reach an all-time high throughout the year.
Department stores such as Lotte, Shinsegae, and Hyundai, as well as marts and convenience stores, are holding wine discount events until the end of this month. Hyundai Department Store has increased the orderable quantity of the 'Baro to Home' service, which delivers freshly prepared foods from restaurants or deli brand stores nearby, by 20-30% and expanded the delivery range, targeting home party demand.
A distribution industry official explained, "As external activities are rapidly restricted ahead of the year-end, the number of customers actively trying to create a year-end atmosphere at home is greatly increasing," adding, "The industry is working to capture demand by expanding related products and strengthening non-face-to-face services."
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