Early Seol Holiday, One-Week Expansion Expected Before Gift Demand
All-Out Effort Including Same-Day Delivery and Expanded Gift Item Selection
Lotte Department Store is delivering Lunar New Year gift sets through the "Direct Delivery Service," which operates until just before the Lunar New Year holiday (Photo by Lotte Department Store).
With the Lunar New Year holiday arriving earlier than usual, those who have not yet prepared holiday gifts are expected to rush to purchase gifts in the week right before the holiday, prompting department stores to move quickly. They are minimizing the time gap in delivery, which is the biggest obstacle for last-minute gift purchases, while also enhancing shopping convenience by expanding online gift options.
According to the distribution industry on the 16th, Lotte Department Store reported that 20% of holiday gift set sales over the past five years (2018?2022) occurred during the last four days right before the holiday. During early holidays like the 2020 Lunar New Year and the 2022 Chuseok, one-quarter of total sales happened in the last four days.
Lotte Department Store expects that this year, too, due to the early Lunar New Year, demand for purchasing gifts will be more concentrated in the latter part of the holiday season when the festive mood is felt, and will operate a 'Same-Day Delivery Service' until just before the Lunar New Year holiday. If customers purchase holiday gift sets worth more than 70,000 KRW, the service delivers the items within 3 hours on the same day to addresses within a 5 km radius of the purchase store. Lotte Department Store anticipates that popular items such as Korean beef and fresh fruit sets, as well as gifts suitable for family enjoyment like dried persimmons, traditional Korean sweets (Hangwa), and wine, will be highly popular.
Models are showcasing 'Fermentation: Gokgan Traditional Liquor' placed on the Lunar New Year's ancestral rites table at Shinsegae Department Store. Photo by Shinsegae Department Store.
Shinsegae Department Store is seeing the effects of the 'Gift Service' on SSG.com Shinsegae Department Store Mall. According to Shinsegae Department Store, sales from the Lunar New Year gift service on SSG.com Shinsegae Department Store Mall have more than tripled compared to the previous year. Since its debut in 2016, this service has rapidly grown with sales doubling every year, and this year’s growth rate has been even greater. From the 29th of last month to the 12th of this month, the average purchase amount per person also increased by 30%.
In response, Shinsegae Department Store is also focusing on the '2023 Lunar New Year Gift Set Exhibition' until the 20th. They have prepared about 100,000 carefully selected Lunar New Year gift sets by Shinsegae buyers. Moving beyond food-centered items like Korean beef and fruits, they are introducing many new genres of products suitable for gifting, such as body care and snack sets. The gift service can also be accessed from the main screens of the SSG.com and Shinsegae Department Store mobile applications. The recipient can set the delivery address, allowing use until just before the holiday. The purchaser only needs to enter the delivery address within 7 days of the receipt date.
An employee at Hyundai Department Store is introducing the custom-made Korean beef gift set called 'My Own Hanwoo Gift' (Photo by Hyundai Department Store).
Hyundai Department Store is strengthening its position as a 'traditional powerhouse' until just before the holiday. At Hyundai Department Store, 'grilling Korean beef sets' are popular gifts this Lunar New Year. With the endemic phase (periodic outbreaks of infectious diseases) leading to more family gatherings during the holidays, demand has increased for grilling Korean beef, which is easy to prepare among the representative holiday gift Korean beef options. From the 2nd to the 14th, sales of sets composed only of grilling cuts (steak, loin) such as sirloin, tenderloin, and striploin increased by 26.7% compared to last Lunar New Year. This is about twice the growth rate of 15.3% seen in sets composed only of cuts for braising ribs or bulgogi.
Sales of 'small-pack Korean beef sets,' which have become a sold-out item during holidays, also increased by 20.2% compared to last Lunar New Year. A Hyundai Department Store official said, "We are securing additional stock focusing on popular items expected to sell out early, such as grilling Korean beef," and added, "We will also pay closer attention to service quality management, including orders and deliveries, during the remaining holiday period."
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