Even During the First Holiday After Social Distancing Lifted... Contactless Gifts Are the Trend

Lotte ON Sees 50% Increase in Gift Service Sales
Gifts Possible with Just a Phone Number, No Address Needed
Delivery Service Also Popular at Department Stores

[Asia Economy Reporter Lim Chun-han] Even during this year's Chuseok, the first holiday after the lifting of social distancing measures, demand for contactless gifts remains strong. Although daily life has returned to previous levels and private gatherings have increased, the contactless trend appears to have firmly taken root.

According to Lotte On on the 7th, sales of the gift service from the 1st to the 4th of this month increased by 50% compared to last year's Chuseok. This service allows users to send gifts with just a phone number, even if they do not know the recipient's address; once the recipient enters their address, the package is delivered. At the Lotte Department Store mall within Lotte On, products purchased by 5 p.m. on the 8th are delivered the same day via quick service, and at Lotte Mart and Lotte Super online malls, products purchased by the morning of the 9th can be received with same-day delivery.

At SSG.com, sales of the contactless gift service increased by 15%. Popular holiday items such as Shine Muscat grapes and Korean beef gift sets saw high sales, with purchases evenly spread across various price ranges from practical items under 50,000 won to premium products over 300,000 won. For SSG Delivery products, orders placed before noon on the 9th can be received by the evening of the same day, and for dawn delivery products, orders placed before midnight on the 8th can be received by 6 a.m. the next day. Gmarket also saw a 19% increase in sales of Chuseok gift sets.

An employee is handing a Chuseok gift set to a delivery person at the Lotte Department Store main branch in Jung-gu, Seoul.

Chuseok gift delivery services are also popular at department stores. At Shinsegae Department Store, the number of Chuseok gift set delivery orders from the 29th of last month to the 4th of this month increased by 7.9% compared to last year's Chuseok. Shinsegae Department Store offers next-day delivery service for purchases over 50,000 won in the metropolitan area if ordered by noon on the 7th. At Hyundai Department Store, the number of Chuseok gift set delivery orders from the 1st to the 4th of this month increased by 10%. Hyundai Department Store operates a holiday last-minute delivery service that delivers gift sets purchased at six stores nationwide on the same day until the 9th. Lotte Department Store also offers immediate delivery service at all metropolitan area stores until the 8th, delivering Chuseok gifts within three hours of purchase.

An official from the distribution industry said, “Even during the first holiday after the lifting of social distancing, the way people express their feelings still reflects an untact consumption trend,” adding, “We will continue to introduce products and services that reflect customer demand.”