January 29 Galleria, January 2 Lotte, Shinsegae, Hyundai Start
Premium and Value-for-Money Product Demand Expected to Clearly Diverge
Impact of High Inflation and Economic Recession, Pre-Order Volume Expands
The department store industry is collectively launching 'Lunar New Year gift pre-order sales.' Considering the increasing number of people purchasing gift sets through pre-orders, the quantity has been increased by about 10-20% compared to previous years. Since demand is expected to sharply divide between 'premium' products and 'cost-effective' products next Lunar New Year as well, the department store industry is strengthening both premium and mid-to-low priced cost-effective gift sets.
Models are introducing Lunar New Year gift sets at the Lotte Department Store main branch. [Photo by Lotte Department Store]
According to the department store industry on the 26th, among the four major department stores (Lotte, Shinsegae, Hyundai, Galleria), Galleria is the first to start pre-order sales for Lunar New Year gift sets. Galleria Department Store will begin pre-order sales for a total of about 280 items from the 29th of this month until January 22nd of next year.
This year, Galleria expanded the number of pre-order items by more than 20% compared to the previous year, including high-priced liquor sets and reasonably priced fruits and industrial products. Due to prolonged inflation dampening consumer sentiment, there is an emphasis on offering high-quality products at reasonable prices, focusing on cost-effectiveness.
From January 2nd next year, Lotte, Shinsegae, and Hyundai Department Stores will conduct Lunar New Year gift pre-order sales. Lotte will offer pre-orders for about 220 items at discounts of up to 50% off the regular price. Given the expectation that demand for pre-order sales with large discounts will significantly increase due to high inflation and economic recession, the number of items has been increased by 10%. Representative products include ‘Royal Hanwoo Steak GIFT (448,000 KRW)’, ‘Low-carbon Hanwoo Mixed GIFT (320,000 KRW)’, ‘Hanwoo Small Happiness Special GIFT (216,000 KRW)’, ‘Jeongseong Hanwoo Mixed GIFT (232,000 KRW)’, ‘Prestige Apple, Pear, Shine, Redhyang, Hallabong GIFT (195,000 KRW)’, and ‘Practical Hallabong, Plum Mango GIFT (95,000 KRW)’.
Shinsegae will conduct pre-order sales for about 260 items including agricultural, livestock, marine products, health/functional foods, and wine until January 20th next year. The number of pre-order items has increased by 11% compared to last year. When using pre-orders, customers can enjoy benefits of up to 20% on agricultural and marine products, 5-10% on livestock such as Hanwoo, and up to 55% on health/functional food products. Major products include ‘Suhyup Special Gulbi Manbok (200,000 KRW)’ and ‘Shinsegae Female Hanwoo Manbok (297,000 KRW)’.
Considering the increased demand for ultra-premium products, Shinsegae also expanded products priced over 200,000 KRW by 25% compared to last Lunar New Year. Representative products include ‘Shinsegae Female Hanwoo Steak (387,000 KRW)’ and ‘Suhyup Yeonggwang Chamgulbi Special (720,000 KRW)’.
Hyundai Department Store will conduct pre-order sales for about 200 items until January 21st next year. The pre-order quantity has increased by 20% compared to last year. Discounts reach up to 30%. Representative products include ‘Hyundai Special Hanwoo Song Set (270,000 KRW)’, ‘Rediscovery of Fruits Shine Muscat Melon Jeju Fruit Set (170,000 KRW)’, ‘Master Artisan Organic Red Ginseng Extract Nan Set (243,000 KRW)’, and ‘Master Artisan Mibon Sun Set (198,000 KRW)’.
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