"Scratches Are Okay"... 'Refurbished' Products Rising Amid High Inflation

Lotte Mart Refurbished Sales 10 Times Higher Than Last Year
Homeplus Up 25%, Emart Doubles
"Impact of High Inflation and Value Consumption"

Due to high inflation and an economic downturn, sales of 'refurbished' products at major domestic large discount stores are significantly increasing. Consumers are flocking to the opportunity to purchase products that are not brand new but still functional at low prices. Each large discount store is opening new refurbished stores nationwide and expanding product categories, which were previously focused on home appliances and furniture, to include daily necessities, fashion, and miscellaneous goods to attract consumers.

A customer is looking at refurbished home appliances at the Lotte Mart Yeongjongdo Branch Refurb Shop in Jung-gu, Incheon.
[Photo by Lotte Mart]

According to the distribution industry on the 24th, Lotte Mart's cumulative sales of refurbished products from January to October this year increased tenfold compared to the same period last year. Lotte Mart currently operates four refurbished shop brands (Allland & Allso, Greeny, Doowon, Zoomarket) at 23 stores nationwide, including Juyop and Singal stores. During the same period, Homeplus also saw sales of refurbished products through 33 refurbished shops such as 'Awesome Market' nationwide increase by about 25% compared to the previous year. Emart's recently opened Banyaweol store (6th branch) recorded refurbished shop sales twice as high as the other five stores (Uiwang, Ilsan, Pentaport, Donggumi, Gwacheon). Since Emart first introduced the refurbished shop 'Doowon' at Uiwang store last year, it has expanded to six refurbished shops by opening the Banyaweol store in September this year. A representative from a large discount store said, "As the high inflation phenomenon prolongs, customers trying to reduce price burdens even slightly are increasingly visiting refurbished stores," adding, "Refurbished products are not worn-out or old like used goods, so they are popular among those who want to purchase trendy items at affordable prices."

Refurbished products refer to items that have been 'refurbished,' including overstock products, store display items, products nearing expiration, items returned immediately after delivery due to customer change of mind, and products with scratches incurred during distribution or manufacturing. Since these are not used secondhand goods, the product condition does not deteriorate significantly, yet prices can be up to 90% cheaper than the regular price. Previously, most small stores handled only home appliances and furniture, but recently, as more people seek refurbished products due to high inflation and economic downturn, product categories have diversified to daily necessities, kitchenware, fashion, and miscellaneous goods, and more large discount stores are officially opening refurbished stores by renting out space.

Accordingly, the distribution industry is also jumping into attracting customers by opening new refurbished shops or holding discount events within the year. Among major large discount stores, Lotte Mart, which operates the most refurbished shops, will open a new refurbished shop of about 992㎡ (approximately 300 pyeong) at the World Cup store in Seo-gu, Gwangju, early next month, selling various products at discounts of up to 70%. Lotte Mart will open three new refurbished shops this year alone, including the Busan store in March and the Seonbu store in August. The refurbished shop brand Awesome Market, located in Homeplus, launched its own private brand (PB) products for the first time this year. Emart plans to display not only furniture but also detergents, paper products, kitchenware, and various other product categories in refurbished shops within stores, allowing customers to enjoy the fun of finding 'cost-effective' products as if on a treasure hunt.

Experts analyze that alongside high inflation, the shift in consumption values toward eco-friendly and sustainable consumption, especially among younger generations, is also a factor in the popularity of refurbished products. Professor Lee Young-ae of the Consumer Studies Department at Incheon National University explained, "Of course, high inflation has an impact, but the main reason for the popularity of refurbished products is the changing consumption values centered on young consumers," adding, "While older generations viewed goods from the perspective of 'ownership,' today's younger generation views goods from the perspective of 'usage.' Unless there is particular inconvenience in use, refurbished products are regarded not as 'used' but rather as rational consumption."