[Asia Economy Reporter Seungjin Lee] SSG.com analyzed sales data from January this year to the 27th of this month and announced the ‘2020 Year-End Online Consumption Trends’ on the 29th.
According to SSG.com’s sales data analysis, the common consumption trend throughout this year was ‘contactless,’ with related products and services gaining popularity. As demand for online grocery shopping significantly increased, the popularization of meal kits drew particular attention. Additionally, with more time spent at home due to remote work, ‘hometainment’ products such as coffee machines and interior goods became popular, and contactless communication methods like ‘gift-giving’ and ‘live broadcasting’ established themselves as new consumption forms.
Online Grocery Shopping Becomes Mainstream... Remarkable Growth of Meal Kits
SSG.com’s same-day delivery ‘Sseuk Delivery’ and ‘Dawn Delivery’ sales grew by more than 50% compared to last year, led by premium meal kits and fresh foods. The number of customers who used Sseuk Delivery and Dawn Delivery at least once this year also increased by 15%.
Among products, ‘meal kits’ sales rose by 196.3%, making them a ‘hit product’ this year. The spread of home-cooked meal culture and the convenience of cooking easily with pre-prepared ingredients and standardized recipes attracted popularity.
The Unijjajang and Samseon Jjamppong meal kits released by Chosun Hotel sold over 100,000 units within 100 days of their launch in August, showing strong consumer response. Meal kits featuring local specialty menus such as ‘Peacock Odeng Restaurant Budae Jjigae,’ ‘Yuksudang Boiled Pork Soup,’ and ‘Gunsan Squid Osam Bulgogi’ also ranked high in sales. Sales of fresh foods including fruits, vegetables, meat, and seafood increased by 65.3%.
Popularity of ‘Hometainment’ Products for Enjoying Leisure at Home
As time spent at home lengthened, the popularity of ‘hometainment’ products related to home cafes, home interiors, and home gyms stood out. ‘Hometainment’ is a newly coined term combining home and entertainment, reflecting the trend of minimizing outdoor activities and enjoying leisure time at home.
First, the number of customers equipping their homes with coffee equipment and supplies comparable to coffee shops increased, making ‘home cafe’ related products popular. Coffee-related appliances such as espresso machines, coffee makers, and coffee grinders saw a 52.3% increase in sales, while capsule coffee sales rose by 68%.
Sales related to interior decoration also increased by more than 30%. Diffusers, which add pleasant scents to frequently used spaces, rose by 113.8%, candles by 77%, paint that can change the atmosphere by 55%, and lighting by 37%. With gyms closed, many customers set up ‘home gyms,’ leading to a 44.2% increase in sales of home training products such as health and yoga equipment.
Sales of game consoles and game packs also increased by 68%, with the game ‘Animal Crossing: New Horizons’ download codes ranking within the top 100 overall sales on SSG.com, indicating significant popularity.
‘Gift-Giving’ and ‘Live Broadcasting’... Increased Use of Contactless Services
With the rise of contactless consumption trends, ‘gift-giving,’ a representative service that allows sending gifts by just knowing the recipient’s phone number, has established itself. Compared to last year, sales increased by 102% and order volume by 106%, showing a significant increase in users.
The variety of items also expanded, including ‘home appliances,’ ‘luxury cosmetics,’ ‘pure gold rings,’ and ‘Starbucks e-card vouchers.’ During this year’s Chuseok holiday, when gift demand was high, ‘gift-giving’ sales increased by 65% and order volume by 60.5% compared to the Lunar New Year holiday at the beginning of the year, marking the emergence of a new holiday trend.
Additionally, live commerce such as live broadcasting rapidly emerged as a new marketing channel this year. Customers familiar with video media responded well as they could enjoy product introduction content while communicating with sellers in real-time for about an hour.
SSG.com introduced ‘Sseuk Live’ for the first time at the Shinsegae Group event ‘Korea Sseuk Day’ last October, attracting an average of about 6,000 viewers per session and up to more than 10,000 viewers at peak times. They are differentiating themselves by presenting live broadcasts linked with offline stores such as E-Mart, Shinsegae Department Store, and Chicor as core content. Recently, they actively utilized live commerce by unveiling new luxury cosmetic products for the first time in the world through live broadcasts.
Gwak Jeong-woo, Head of Operations at SSG.com, said, “This year, we introduced customized products reflecting the preferences of the ‘homebody’ trend and strengthened contactless services. Next year, we will continue to enhance customer satisfaction through differentiated content planning that connects online and offline.”
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