Lotte Department Store "Premium Audio Market Growing on Netflix and YouTube"
[Asia Economy Reporter Seungjin Lee] Sales in the premium audio market have grown due to the influence of Netflix, YouTube, and other platforms.
Lotte Department Store announced on the 17th that sales in the 'Premium Audio' category, which includes audio products priced in the millions of Korean won range, grew by 6.7% compared to the previous year.
Despite the offline market shrinking recently due to the impact of the novel coronavirus (COVID-19), the premium audio market showed growth. The 'Premium Audio' category at the main store, where the premium audio store ‘ODE’ selling Bang & Olufsen, Geneva, and others is located, saw a 19.2% increase in sales from the 10th of last month to the 12th of this month compared to the previous year.
The growth in the premium audio market is analyzed to be influenced by the expansion of the online video service ‘OTT (Over The Top)’ market such as Netflix and YouTube. Unlike in the past, customers are increasingly transforming their personal spaces into ‘professional cultural viewing spaces’ by using premium audio equipment and home theaters, as they can enjoy movies and music without spatial or temporal restrictions.
Even after the spread of COVID-19, related sales have increased as people spend more time at home due to remote work and restrictions on outdoor activities, leading to greater interest and purchases of related products. Additionally, customers who want to enjoy their hobbies professionally often prefer to try expensive premium products in person and purchase them at department stores that provide reliable after-sales service, which is also analyzed as a factor contributing to sales growth.
Meanwhile, Lotte Department Store is operating a popup store for the world-renowned French audio equipment brand ‘Devialet’ at its main store until the 2nd of next month. Devialet is characterized by emitting 4500W of sound that fills the space with just one device, and its unique design also serves as an interior decoration effect.
The main products at this popup store include the ‘Phantom Reactor 600’ priced at 1,890,000 KRW, the ‘Phantom Reactor 900’ at 2,390,000 KRW, and the ‘Phantom Opera’ at 5,290,000 KRW. Customers who purchase these products will receive ‘Lotte Gift Certificates’ worth between 100,000 and 300,000 KRW depending on the purchase amount.
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Yoon Hyuncheol, Chief Buyer of Electronics at Lotte Department Store, said, “As more customers spend leisure time at home, demand for premium audio is increasing. We are organizing stores reflecting this trend and preparing related product events to capture customer demand.”
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