"It's the cheapest to buy now"... Considering buying a padded jacket despite the scorching heat

Increase in Consumers Seeking Cheaper Goods Due to Inflation
Off-Season Marketing Trends in Distribution Amid Economic Uncertainty
Experts: "Consumers Engage in Planned Purchases and Strategic Spending"

Due to the prolonged impact of inflation, the number of consumers trying to buy premium padding jackets at lower prices is increasing. The photo is not related to the specific content of the article. Moncler store at Shinsegae Department Store Yeongdeungpo branch. Photo by Shinsegae Department Store

[Asia Economy Intern Reporter Lee Gyehwa] #. Kim, a 30-something office worker, recently purchased a premium padded jacket at a 70% discount. He explained that if he waited until winter to buy it, his size would be sold out and prices would likely rise again. He said, "Off-season purchases can definitely be cheaper than buying in winter if done right," adding, "I think midsummer is the best time to buy expensive brand-name padded jackets that I usually keep an eye on at a lower price."

According to the July Consumer Price Index report by Statistics Korea on the 12th, the consumer price index last month was 108.74 (2020=100), marking a 6.3% increase compared to the same period last year. This is the highest figure in 24 years since November 1998 (6.8%), right after the foreign exchange crisis. Following a 6.0% rise in June, this is the second consecutive month with a 6% increase.

As a result, more consumers are seeking to buy necessary products at lower prices, spreading awareness of rational consumption such as off-season sales. With persistent high inflation amid an economic downturn, consumers have come to prioritize reasonable prices. Lee, a housewife in her 40s, purchased a premium padded jacket priced at around 2.4 million KRW for 690,000 KRW during an off-season sale, which she had hesitated to buy due to the price. She said, "I also got my child's padded jacket, which was 1.39 million KRW, for 390,000 KRW, so I feel like I scored a great deal," adding, "Even most national brands exceed 700,000 KRW, so since I had to buy it anyway, I feel like I saved money."

Given this situation, off-season marketing is trending in the retail industry as economic instability and high inflation continue. Off-season sales refer to drastically discounting inventory to relieve storage and logistics costs and secure liquidity for preparing next season's products.

Recently, due to limited stock, high-priced premium padded jackets or non-trendy designs of leftover products that are hard to find once winter arrives are being sold at dramatically reduced prices. This explains why more consumers are buying winter clothes in midsummer.

As more customers seek rational consumption, off-season marketing is expected to continue. According to Shinsegae Department Store, sales at the premium padded jacket pop-up store, which started in July, increased by more than 43% compared to the same period last year. During the same period, Hyundai Department Store also saw a 47.7% increase in premium padded jacket sales. Lotte ON and Hyundai Department Store plan to continue off-season events with discounts of up to 70% in August as well.

Industry insiders noted that sales usually decline in July and August due to summer vacations, but off-season marketing significantly helps boost sales during the retail industry's off-season.

However, some caution against unnecessary consumption. Park, a 30-something office worker, said, "When there’s a sale, you feel like you have to buy something, and buying something on a drastic sale does make you feel like you gained something," adding, "The high discount rates are usually on inventory older than six months, but if it’s a basic item with little design change over time, it’s worth considering the purchase."

Experts analyzed that the retail industry leads consumers by promoting flagship brands (representative items in product brands), and consumers are making strategic purchases accordingly. Professor Lee Eunhee of Inha University’s Department of Consumer Studies said, "Consumers with high brand loyalty make planned purchases," adding, "They know well about their favorite brands and prices." She further explained, "They understand that buying during drastic off-season discounts is beneficial and make annual purchase plans."