'Contactless Lunar New Year Gifts' High-Priced Trend ... Department Store Hanwoo & Wine Sets Expanded

Leading with Hanwoo over 1 Million Won and Ggulbi in the 300,000 Won Range
Premium Sets Also Popular for Pre-Orders... Emart Sees 244% Surge in Orders Over 200,000 Won

On the 18th, when the main sales of Lunar New Year gift sets began, a citizen is looking around a premium Korean beef set at the Lotte Department Store main branch in Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Jo In-kyung] Due to concerns over the spread of the novel coronavirus infection (COVID-19), it is expected that many people will send gifts instead of visiting their hometowns this Lunar New Year, prompting the distribution industry to strengthen sales of premium gift sets. As the government raised the gift value limit for agricultural, livestock, and marine products to revitalize the sluggish domestic economy, department stores and large marts have already seen an increase in sales of gift sets with higher prices, including premium Korean beef, seafood, and fruits.

According to the industry on the 21st, Lotte Department Store increased the quantity of Korean beef sets by more than 30% compared to last Lunar New Year, including the 1.7 million KRW ‘L-NO.9 Set (6.5kg, limited to 100 sets)’ which contains only the highest-grade 1++ Korean beef cuts. The premium Australian Wagyu gift sets, which saw sales increase by more than 40% compared to the previous year during last Chuseok, have been prepared with over 50% more stock this time. They also introduced high-priced gift items targeting luxury demand, such as the 2 million KRW ‘Yeonggwang Beopseongpo Gulbi Set (10 fish, 2.7kg)’ and the wine ‘Chateau Lafite Rothschild 2000 (limited to 3 bottles)’ priced at 6.5 million KRW per bottle.

Hyundai Department Store prepared about 30% more gift sets priced over 300,000 KRW, including Korean beef and gulbi, compared to last Lunar New Year. They expanded luxury Korean beef gift sets priced over 1 million KRW by more than 50% compared to last year, such as the ‘Hyundai Premium Korean Beef Set (1.5 million KRW)’ and the ‘Hyundai Hwashik Korean Beef Premium Number Nine Set (1.1 million KRW).’ They also upgraded gulbi products, featuring representative items like the ‘Hyundai Yeonggwang Chamgulbi Juk Set (320,000 KRW)’ and the ‘Hyundai Yeonggwang Spring Gulbi Juk Set (370,000 KRW).’ Sets of easily cooked grilled Korean beef and marinated meat, as well as wine and champagne gift sets, were increased by about 20%.

Shinsegae Department Store also set the total quantity of Lunar New Year gift sets at 450,000, about 25% more than last year. Expecting many consumers to send New Year greetings through gifts, they expanded premium products by 20% and online-exclusive products by about 30%.

Following last Chuseok, the expectation that high-priced gift set purchases would increase due to the inability to visit parents or relatives directly because of COVID-19 has already come true.

In the case of E-Mart, from the 24th of last month to the 19th of this month, sales of gift sets priced over 200,000 KRW surged by 244.0% compared to the same period last year, surpassing the overall gift set sales growth rate of 209.8% during the same period. Compared to sales growth rates of 212.7% for products under 50,000 KRW, 240.0% for 50,000 to 100,000 KRW, and 71.2% for 100,000 to 200,000 KRW, this is the highest figure.

Choi Hoon-hak, E-Mart’s marketing manager, said, “While pre-order sales, which can be considered a barometer of Lunar New Year business, are progressing smoothly, premium gift sets are showing remarkable growth. With the temporary increase in the upper limit for agricultural, livestock, and marine product gifts, demand for gift sets priced between 100,000 and 200,000 KRW is rising, and overall, the popularity of high-priced gift sets is expected to continue.”