Frozen Mandu Instead of Beef... Buying 'More for Less' Amid COVID-19 and Economic Downturn

[Asia Economy Reporter Seungjin Lee] #Yoo Si-eun (30, pseudonym), an office worker who has been working from home for two weeks, recently bought large-capacity products that she did not purchase before while grocery shopping. Instead of buying six eggs, she bought a whole carton, and she also looked for a large-capacity facial cleanser that was twice the size of the product she usually used. Yoo said, "Large-capacity products are cheaper, and since I spend more time at home, I tend to buy a lot at once."

As the economic recession continues and the impact of the novel coronavirus disease (COVID-19) overlaps, more people are seeking large-capacity products. The cheaper price per unit of large-capacity products appeals to consumers trying to save money during the economic downturn, combined with the social atmosphere of refraining from outdoor activities due to COVID-19, leading to a tendency to buy in bulk.

According to SSG.com on the 17th, sales at Traders Mall from March 1 to 15 rose 82.2% compared to the same period last year. Compared to the previous month, sales also increased by more than 10%. It is analyzed that as the COVID-19 impact continues and the economic recession prolongs, consumers have turned to Traders Mall, which mainly handles large-capacity products.

Looking at the popular products sold at Traders Mall over the past month, boxed strawberries and milk, large-capacity frozen dumplings, and frozen meats ranked high. This contrasts with last year when relatively expensive meat products such as beef dominated the top ranks. In particular, the high ranking of frozen dumplings suggests that as budgets tighten, more people are seeking affordable processed foods.

An SSG.com official explained, "Due to the recent impact of COVID-19, demand for stocking up on daily necessities and home cooking has increased," adding, "Large-capacity products, including fresh foods and processed foods like frozen dumplings, are showing strong sales."

In addition, offline stores show that warehouse-style discount stores tend to increase sales during recessions, which was clearly reflected in February sales. According to the Financial Supervisory Service's electronic disclosure, Emart's discount store sales in February decreased by 9.6%, whereas sales at Traders, a warehouse-style store, jumped by 20.4%. Lotte Mart's warehouse-style discount store, Big Market, also saw sales increase while other Lotte offline stores experienced declines. The sales growth rates for January and February were 4.1% and 6.4%, respectively, reflecting consumers' tendency to seek cost-effective products during recessions.

The consumer trend toward large-capacity products is evident not only in food but also in cosmetics. From the 1st of last month to the 15th of this month, sales of products with "large-capacity" in their names increased by 22% compared to the same period last year. Additionally, more people are reported to be buying mask packs by the box rather than individually.

Regarding this, an industry insider said, "The increase in consumption of large-capacity products has always accompanied economic downturns," adding, "Recently, with reduced outdoor activities due to COVID-19, this trend has become even more pronounced online."

This content was produced with the assistance of AI translation services.