Mother's Day Gifts Also Drive Revenge Spending... Luxury Goods and Gold Lead the Trend

Shinsegae and Galleria Department Store Luxury Sales Increase by 55% and 70% Respectively
Lotte Department Store Ultra-Premium Cosmetics Up 50%... Attracting Customers with Discount Events
Convenience Stores Also Selling High-End Gifts... GS25 Luxury and Gold Sales Grow 34%

[Asia Economy Reporter Lim Chun-han] Following the Chuseok and Lunar New Year holidays, premium high-priced gifts are also the trend for this year’s Parents’ Day. From department stores to convenience stores, high-end product categories such as luxury goods, gold, and massage chairs are selling like hotcakes. This is analyzed to be due to the prolonged COVID-19 pandemic causing a clear ‘revenge spending’ phenomenon, and an increasing number of people wanting to express gratitude through gifts in line with the non-face-to-face trend.

◆Luxury Gifts for Parents = According to Lotte Department Store on the 7th, luxury sales from the 1st to the 5th increased by 37% compared to the same period last year, and sales of massage chairs and medical home appliances rose by 16%. Additionally, sales of ultra-high-end cosmetic brands with set products exceeding 1 million won increased by 50% compared to last year.

At Shinsegae Department Store, luxury sales surged by 54.9% year-on-year during the same period, and sales of home appliances such as massage chairs increased by 11%. At Galleria Department Store, luxury accessories sales rose by 70%, high jewelry and watches by 76%, and massage chairs by 49% compared to the same period last year. An industry insider said, "Luxury brand products are gaining popularity in celebration of Parents’ Day," adding, "More customers are purchasing high-priced watches or jewelry as gifts for their parents."

The distribution industry is competing to attract customers with various premium products and discount events. Lotte Department Store is focusing on cosmetics and fashion. Until the 9th, an event featuring 42 domestic and international cosmetic brands is being held, offering up to 15% discount benefits. Shinsegae Department Store introduced the world’s highest grade Manuka honey priced at 2.5 million won offline for the first time. Galleria Department Store is selling carnations made of natural jade priced between 50,000 and 200,000 won.

Massage chairs are also being promoted as filial piety gifts for Parents’ Day. Emart is holding a health appliance discount event until the 12th, featuring massagers, massage chairs, spinal medical devices, hair loss treatment devices, and blood pressure and blood sugar monitors. Lotte Hi-Mart is preparing an event offering up to 25% discounts on popular gifts such as massage chairs on its online shopping mall until the 31st, and Electronic Land is also running promotions targeting health appliances.

◆Convenience Stores Selling Gold and Electronics = Convenience stores have also emerged as places to purchase high-priced gifts for Parents’ Day. The era when convenience stores were only for snacks like triangular kimbap and cup noodles is over. Major convenience stores have started selling luxury goods, gold, and electronic products that were previously only available at department stores. At GS25, sales of catalog products for the Parents’ Day special exhibition increased by 252.5% compared to the same period last year. In particular, the luxury and gold categories grew by 34.3% year-on-year.

Seven Eleven is conducting pre-orders for gold carnations consisting of a pure gold carnation badge weighing 1 don and gold bars (5 don and 10 don) in collaboration with the Korea Gold Exchange. So far, a total of 50 sets (worth about 100 million won) have been sold, and sales are expected to increase during the remaining sales period. Emart24 held pre-orders for pure gold carnations, pure gold golf balls, and pure gold bars from the 27th of last month to the 3rd. The total amount of pure gold products sold this time is about 1,000 don, which amounts to approximately 300 million won.

This is not the first time convenience stores have sold high-priced products. During this year’s Lunar New Year holiday, they also sold mobile homes and gold bar sets, which were very popular. An industry insider said, "Convenience stores are showing good performance by selling seasonal unique products," adding, "We carefully analyze changing consumer demands and plan to further expand the product lineup in the future."