Lunar New Year Gifts, Full of Health... Hong Sam Sales Soar

Emart Lunar New Year Gift Pre-Orders Up 129%
Health Foods Up 342%, Four Times Last Year
Lotte Mart Red Ginseng Sales Increase 353%
Gift Limit Raised to 200,000 Won, Hanwoo Beef Popular

[Asia Economy Reporter Seungjin Lee] With Lunar New Year just a month away, pre-order sales of Lunar New Year gift sets at department stores and marts have significantly increased compared to last year. Due to the impact of the novel coronavirus disease (COVID-19), sales of health functional food gift sets such as red ginseng have risen more than fourfold.

Lunar New Year Gift Pre-orders Up 120%

According to the distribution industry on the 18th, Emart's pre-order sales of Lunar New Year gift sets from the 23rd of last month to the 13th increased by 129% compared to the same period last year.

While sales of traditional popular gift sets such as fruit and livestock increased by 48% and 65% respectively compared to the previous year, sales of health functional food gift sets grew by 342%, more than quadrupling from last year.

Emart’s success was attributed to offering a total of 57 types of health functional food gift sets, four times more than the 14 types offered during last year’s Lunar New Year, considering the COVID-19 situation. Additionally, as staying at home prolonged due to COVID-19, canned food gift sets also saw sales jump by 255% compared to the previous year.

Lotte Mart also saw a significant increase in customers purchasing health functional food gift sets. From the 24th of last month to the 13th, Lotte Mart’s pre-order sales of Lunar New Year gift sets rose by 46%, with sales of red ginseng-related gift sets reaching 353%. Wine gift set sales also increased by 107% compared to last year.

Kim Young-ran Act Raised to 200,000 KRW, Hanwoo Beef Popular

The department store industry also reported pre-order sales of Lunar New Year gift sets increasing by up to 30%, and they are expecting strong sales during the upcoming main sales period. Unlike marts, where pre-order sales account for 50%, department stores have pre-order sales accounting for only about 10%. This is especially due to the Anti-Corruption and Civil Rights Commission’s temporary decision to raise the gift value limit for public officials under the Kim Young-ran Act during the Lunar New Year period (January 19 to February 14) from the previous 100,000 KRW to 200,000 KRW for agricultural, livestock, and fishery products and processed goods.

Lotte Department Store increased the number of premium gift sets priced between 200,000 and 500,000 KRW by 20% compared to last Chuseok and prepared 30% more stock. Hyundai Department Store increased the reservation volume of gift sets priced over 500,000 KRW by more than 50% compared to last Lunar New Year. Shinsegae Department Store also plans to expand the volume of premium gift sets priced over 200,000 KRW by 20%.

A department store industry official explained, "When the gift value limit rose to 200,000 KRW during last Chuseok, gift sets centered on Hanwoo beef became very popular," adding, "A similar trend is expected to be reflected during this Lunar New Year holiday."