Shinsegae Department Store, Pre-Order Sales Up 40.8%
Premium and Value-for-Money Two-Track Strategy
[Asia Economy Reporter Lim Chunhan] Recently, as high inflation continues, a clear polarization in consumer spending is emerging in the pre-order sales of Seollal gift sets. While demand for premium gift sets remains high this year, on the other hand, cost-effective (price-performance) gift sets are gaining popularity due to weakened consumer sentiment.
According to Shinsegae Department Store on the 30th, pre-order sales of Seollal gift sets from the 12th to the 25th of this month increased by 40.8% compared to the same period last year. Sales under 100,000 KRW rose by 29.7%, those between 100,000 KRW and 200,000 KRW increased by 23.8%, and sales over 200,000 KRW surged by 60.2%. During the same period, Hyundai Department Store saw a 35.7% increase in pre-order sales of Seollal gift sets. Sales under 100,000 KRW grew by 31.4%, between 100,000 KRW and 200,000 KRW by 45.9%, and over 200,000 KRW by 47.3%. Lotte Department Store’s pre-order sales rose by 35%, and Galleria Department Store’s by 13%.
Department stores have expanded both the variety and quantity of premium and cost-effective gift sets. Shinsegae Department Store increased gift sets priced over 300,000 KRW by 30% compared to last year. Their representative premium product is the luxury Korean beef special set (2,000,000 KRW), and a cost-effective product is the Italian red wine Tollaini set (120,000 KRW). Hyundai Department Store is offering up to 30% discounts on about 240 types of gift sets including Korean beef, dried yellow corvina, fresh produce, and health foods. Lotte Department Store expanded the number of pre-order items by 10% compared to last Seollal and offers a wide range from premium to practical sets. Galleria Department Store increased pre-order set items by 20% compared to last year and offers discounts up to 60%.
Models are introducing Lunar New Year gift sets at the Seoul Lotte Department Store Main Branch. (Photo by Lotte Department Store)
Similar trends appeared in large supermarkets. Emart’s pre-order sales of Seollal gift sets from the 1st to the 25th of this month increased by 32.5% compared to the same period last year. Sales under 50,000 KRW rose by 30.8%, between 50,000 KRW and 100,000 KRW by 68.8%, between 100,000 KRW and 200,000 KRW by 11.2%, and over 200,000 KRW by 16.4%. This Seollal, as the trend to purchase gift sets cheaply in advance spreads, the proportion of pre-order sales is expected to exceed 50% for the first time.
Lotte Mart also saw a 20% increase in pre-order sales of Seollal gift sets. Their representative premium product is the 'Marble Nine Korean Beef Sirloin Meat Set No. 1' (499,000 KRW), composed of popular cuts such as sirloin and striploin. Cost-effective products include 'Cleaned GAP Apples' (29,900 KRW), 'Jeonju Hanok Pottery' (35,900 KRW), 'U.S. Prime LA-style Short Rib Set' (99,000 KRW), and 'Korean Beef Meat Set No. 2' (99,000 KRW). As a result, fruit gift sets under 50,000 KRW saw a 20% increase in sales, with apple and pear gift sets priced around 30,000 KRW increasing by 50%.
A representative from a large supermarket said, “To ease customers’ burdens, we diversified pre-order promotion products and enhanced customer benefits,” adding, “We hope customers will take advantage of both online and offline channels to purchase gifts economically during the remaining event period.”
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