"High Inflation Era, Lump-Sum Payment Burden"... Home Shopping Gains Attention for 'Long-Term Interest-Free Installments'

CJ OnStyle's 'One-Touch Rental' September Orders Up 46% MoM
Luxury and Premium Appliances Popular with Up to 48-Month Installments
VIP Cruise 100-Month Installment Payment Broadcast Premiered
"Targeting Consumer Changes Due to Inflation"

CJ OnStyle, cruise travel broadcast screen (Photo by CJ OnStyle).

[Asia Economy Reporter Yuri Kim] As we enter an era of high inflation, home shopping's 'installment payment service' is gaining renewed attention. The 'interest-free installment' service promoted by home shopping is receiving positive responses, especially from customers who want to purchase high-priced premium products but feel burdened by lump-sum payments.

According to the distribution industry on the 3rd, from the 1st to the 22nd of last month, CJ OnStyle's 'One-Touch Rental' theme hall order amount grew by 46% compared to the same period of the previous month. With high inflation becoming a prominent issue before and after the Chuseok holiday, it is explained that the number of customers seeking interest-free installment payment services has increased.

The main brands of One-Touch Rental include luxury goods and premium home electronics such as Gucci, Bottega Veneta, and Bang & Olufsen. The ownership of the product is transferred to the customer upon full payment of the rental installments during the contract period of up to 48 months. The popularity is also due to free after-sales service (A/S) during the rental period and the availability of billing discounts when using affiliated cards. For example, the best-selling product in August for One-Touch Rental, the Gucci Jumi shoulder bag, transfers ownership to the customer after a 300,000 KRW down payment and approximately 110,000 KRW monthly installments over 24 months. CJ OnStyle's One-Touch Rental offers a tailored shopping experience by lowering the burden of full payment across various product categories, including premium electronics and popular golf equipment, in addition to luxury goods.

Luxury overseas travel is also trending toward installment payments. Recently, CJ OnStyle introduced a luxury cruise travel package. This package significantly reduces customer cost burdens with a 100-month interest-free installment plan. The broadcast, which launched the 100-month cruise travel installment plan for the first time in home shopping on September 11, achieved consultation order amounts of 22 billion KRW within one hour. Over the past two months, Hyundai Tour Zone's VIP cruise cumulative order amount has reached 68 billion KRW. A home shopping official said, "As we enter an era of high inflation, conspicuous consumption such as 'Flex' and saving consumption trends like 'Jjantech' and 'BNPL (Buy Now, Pay Later)' are intersecting," adding, "As a result, the number of customers seeking rental services has increased."

Lotte Home Shopping operates a foreign car rental service on its own online mall. Amid rising semiconductor prices causing automobile prices to increase, long-term rentals are available for imported cars such as the Mercedes-Benz E300 and BMW 320D, as well as Genesis G80 and Ioniq 5, receiving great responses. Customers can reduce the initial cost burden of purchasing a new car and also save on vehicle maintenance costs with free A/S during the contract period.

Hyundai Home Shopping also operates a Rental Festa where customers can view home shopping hit products all at once. Upon consultation application, customers can receive explanations on discount benefits and rental conditions from professional consultants. Popular rental products handled include the Ceragem Pause M2 massage chair, Sonoseason mattress, and Samsung Electronics package programs.

An industry official stated, "After the endemic (periodic outbreak of infectious diseases), while customers have a desire for revenge consumption, many hesitate to purchase due to increased prices," adding, "Channels that quickly catch such consumer psychology and launch reasonably priced products will increase in the future."