Unlocked Japan... 4 Home Shopping Companies Smiled

CJ On Package Product Sales 2 Billion
Lotte Home Shopping 2,000 Consultations
Preparing for Visa-Free Tourism Officialization
Additional Broadcasts Scheduled Next Month

[Asia Economy Reporter Jeon Jinyoung] #Office worker Im Sumin (30) booked a 3-day, 2-night package trip to Kyoto hot springs and Osaka last week after watching a home shopping broadcast at home after work. Im said, "I couldn't go to Japan during the 'No Japan' movement, and with COVID-19 overlapping, I don't know how many years it's been since I last went. People around me say they will leave immediately once tourism to Japan resumes, just like me." She added, "There are various restrictions such as visas, so I thought I might not be able to go this year either, but since the regulations are said to be lifted from October, I booked right away. I plan to take my mother to the hot springs."

#Office worker Kang Dayeon (29) booked a 3-day free itinerary package to Fukuoka in November through e-commerce. Kang, who used to travel to Japan regularly before COVID-19, said, "I diligently checked the e-commerce homepage via an application (app) on my commute." She added, "I usually dislike tightly scheduled trips, but there was a free travel package that only assists with entry and exit procedures, so I booked immediately. I plan to stay motivated by thinking about the upcoming trip for a while."

As the Japanese government announced it is considering completely opening the gates for tourists by allowing visa-free entry and free travel, sales of related products such as Japan travel packages have increased on home shopping and e-commerce platforms. Travel demand, which had been suppressed due to the No Japan movement and COVID-19, is beginning to rise. The industry is targeting this demand by increasing related broadcasts and holding special events.

According to the home shopping industry on the 22nd, CJ OnStyle resumed broadcasting Japan travel packages on its T-commerce channel on the 19th and 20th for the first time in about three years. The broadcast introduced a 3-day, 2-night package including accommodation at a Kyoto hot spring hotel and a hotel in central Osaka. Although it aired on weekday nights with low viewership, orders worth about 2 billion KRW poured in. This exceeded the sales target by 10%. A CJ OnStyle official explained, "Before the broadcast, the Japanese government mentioned easing regulations, and since it was the first time selling the product in three years, the results were better than expected."

Other home shopping companies also achieved good results. Hyundai Home Shopping, which sold a Kyushu package through its T-commerce channel on the 18th, saw orders and consultations more than double compared to their targets for that broadcast.

Lotte Home Shopping also sold a package combining Osaka, Kyoto, and Kyushu on the 28th of last month, recording 2,000 consultation cases during the broadcast. A Lotte Home Shopping official said, "Japan has a high demand for free travel where air tickets and accommodations are booked separately, so package reservations are relatively low, but having over 2,000 consultation cases for a package product resumed after three years is considered a satisfactory figure internally."

In the case of GS Shop, even before the relaxation of tourism conditions was mentioned, the Kyushu travel product broadcast on July 31 attracted 1,700 consultation orders. Despite being a late-night broadcast, it achieved good results, and the Tokyo travel product aired at 1 a.m. on the 28th of last month sold about 600 units.

The four home shopping companies expect tourism demand to Japan to increase further once visa-free tourism is officially implemented in October, and they are considering additional package sales broadcasts during October. GS Shop plans to schedule a Hokkaido travel product on the 3rd of next month and sell Kyushu packages on the 8th and 9th.

Following home shopping, e-commerce platforms selling air tickets and packages have also experienced a boom. Especially after the Japanese government specifically announced plans to ease tourist regulations such as visa relaxations on the 13th, sales of package products and air tickets have noticeably increased. For example, 11st saw a 27% increase in Japan travel package sales from the 14th to the 20th compared to the previous week. Gmarket's sales of local Japan tour packages from the 1st to the 20th increased by 34% compared to the previous month, and overseas air tickets surged by 136% during the same period, driven by increased demand for Japan tourism.

An industry insider said, "Travel demand to Japan has been suppressed for about four years due to the No Japan movement and COVID-19 combined. Travel demand is expected to surge sharply after the official announcement anticipated in October." They analyzed, "Especially since Japan is geographically close, it is a country with less burden for Koreans regarding international travel, so it will be easier to attract travel demand after the endemic (periodic outbreak of infectious diseases)."