Home Appliance Retailers in Crisis Aim for New Semester Sales Boost

Lotte Hi-Mart, 'Compare and Buy New Products the Fastest' Event
Electro Land, Double Regular Mileage Accumulation Based on Purchase Amount

Electronics retailers are actively targeting demand for IT appliances such as laptops during the graduation and new semester season, aiming to boost sales early in the year.

On the 6th, Lotte Hi-Mart analyzed sales data from 2020 to 2022 and found that about 30% of annual laptop sales were concentrated in February and March. Additionally, laptop sales in February increased by approximately 30% compared to January each year.

Electro Land also sold about 40% of its annual laptop sales in the first quarter last year. Most of the yearly sales were made during the academic season, known as the new semester season from January to March, while sales in the remaining second to fourth quarters were relatively evenly distributed.

Sales of mobile products, including smartphones and laptops, are also most prominent in the first quarter. Electro Land's mobile category sales in the first quarter of last year grew by about 5% compared to the previous year. Although this was a weaker figure compared to the 60% sales growth recorded in 2020?2021, driven by the success of Samsung Electronics' foldable phone ‘Z Flip’ series and increased sales of unlocked phones, it was a decent performance considering the overall sluggishness of the home appliance market last year.

Since laptop and mobile product sales are concentrated during this period, electronics retailers are competing to attract consumers by holding discount events. Lotte Hi-Mart is conducting the ‘2023 Compare and Buy New Products Fastest’ event throughout February, allowing customers to purchase major IT appliances at discounted prices. Purchasing LG Electronics laptops offers up to 300,000 KRW cashback depending on the model, and on weekends, laptops from overseas brands such as Apple, Microsoft, and Lenovo are discounted by up to 20%.

Electro Land is also offering double regular mileage points based on the purchase amount to members who buy products at stores nationwide throughout February. Additional double membership points are also given to new members who sign up for the membership.

Earlier, both Lotte Hi-Mart and Electro Land changed their leadership at the end of last year in an effort to turn the atmosphere around. Electronics retailers are facing increasing difficulties due to decreased demand caused by worsening consumer sentiment and the rise of sales channels such as e-commerce. According to financial information firm FnGuide, Lotte Hi-Mart is expected to have turned to an operating loss of 31.4 billion KRW last year, and Electro Land also returned to a loss in 2021 for the first time in nine years.