Emart Records Highest Ever Sales in First Pre-Order
Homeplus Sees 37% Increase in Meat Gift Set Sales
Cost-Effective Gift Sets Popular Amid High Prices
Three major large-scale marts simultaneously began pre-orders for Chuseok gift sets in early this month, and initial sales results have been favorable. It is interpreted that value-for-money (performance relative to price) gift sets, introduced considering high inflation and economic downturn, have moved consumers' hearts.
According to the distribution industry on the 28th, Emart recorded its highest-ever sales performance during the first pre-order period for this year's Chuseok gift sets, with sales increasing by 4% compared to last year. Emart's first pre-order period for Chuseok gift sets was held from the 2nd to the 23rd of this month.
Emart emphasized that despite the first pre-order period being four days shorter than last year and shorter than usual, sales increased. When comparing by date outside the pre-order period, this year's sales rose by about 8% compared to last year.
Looking at the items that performed well in pre-orders, value-for-money gifts stand out. Among them, apple gift sets saw sales increase by 50.5% compared to the previous year. Sales of 'mixed fruit sets' containing apples and pears increased by 25.6%. This is believed to be due to improved apple harvests this year, stabilizing prices. Emart lowered the price of famous region apple sets (3.9 kg of apples) by 17% compared to last year and reduced the prices of main fruit gift sets by an average of 10%. The company explained that through pre-planning and integrated purchasing with Traders and Emart Everyday, they were able to freeze or lower sales prices.
Sales of Korean beef, tilefish, and seaweed gift sets also increased compared to last year. Emart offered a 20% discount on Korean beef and tilefish gift sets through card discount events, and for seaweed gift sets, whose raw material prices rose, prices were frozen at levels similar to last year through integrated purchasing. According to Emart, Korean beef gift sets saw double-digit sales growth during the first pre-order period, and nearly 1,000 tilefish gift sets were sold despite being a new product.
Models introducing the '2024 Chuseok Gift Set Pre-Order' at Homeplus Mega Food Market Gangseo Branch in Deungchon-dong, Seoul. [Photo by Homeplus]
Homeplus, which started pre-orders for Chuseok gift sets the earliest among large marts, also saw popularity centered on value-for-money gift sets. Homeplus accepts pre-orders from the 25th of last month to the 6th of next month.
At Homeplus, sales of value-for-money livestock sets priced between 20,000 and 90,000 won increased by 37% compared to the same period last year. Homeplus introduced value-for-money livestock sets for customers who find high-priced Korean beef sets burdensome. Representative products include ▲Bomeokdwae BBQ refrigerated set (Canadian, 1.5 kg, 32,700 won) ▲Traditional marinated beef bulgogi frozen set (Australian, 1.6 kg, 49,630 won) ▲Traditional marinated neobiani grilled frozen set (Australian beef and domestic pork, 1.2 kg, 46,130 won).
So-called 'extreme value-for-money' gift sets under 10,000 won were also popular. Sales of practical sets consisting of socks increased by 47% compared to last year. The highest-selling product was 'Fila, Nepa, PAT socks (2 pairs, 7,900 won, 1+1)'. Other products showing high sales growth compared to last year include ▲30,000 won health gift sets (283%) ▲10,000 won coin broth sets (250%) ▲30,000 to 50,000 won Spam mixed sets (36%).
The reason value-for-money gift sets are popular at each large mart appears to be the continued high inflation and economic downturn. According to Statistics Korea, the consumer price index last month was 114.13 (2020=100), up 2.6% from the same month last year, with the price increase rate for agricultural, livestock, and fishery products reaching 5.5%. In particular, the price increase rate for agricultural products was 9%, with strong prices continuing for fruits such as apples (39.6%) and pears (154.6%). Fruits are considered representative Chuseok gifts.
For this reason, large marts have consecutively introduced gift sets emphasizing value-for-money. Emart developed affordable pre-order exclusive fruit gift sets while expanding 40% discount sets from one type last year to five types this year. Homeplus configured 68% of its total gift sets as practical types priced under 30,000 won and increased the quantity of gift sets under 30,000 won by 20%. Lotte Mart also expanded the number of value-for-money fruit gift set items under 30,000 won by more than 30% and increased quantity by 20%.
The good discount benefits when purchasing during the pre-order period also seem to have contributed to attracting customers. According to Emart, sales of gift sets on the last day of the first pre-order period, the 23rd, set a record for the highest single-day sales during any Chuseok period. At Homeplus, pre-orders accounted for 75% and 70% of total gift set sales during last year's Chuseok and this year's Lunar New Year, respectively. Lotte Mart also saw the proportion of pre-orders for holiday gifts exceed half during the same period.
Meanwhile, the three major large marts plan to continue pre-orders for Chuseok gift sets until the 6th of next month.
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