Home Appliance Industry Sees Decline in Offline Sales and Increase in Online Sales of White Goods
[Asia Economy Reporter Dongwoo Lee] Recent data shows a significant increase in online sales of major white goods.
According to the electronics and retail industries on the 28th, SSG.com, the online subsidiary of E-Mart, recorded a year-on-year sales growth rate for TV products of 160% in January, 110% in February, and 144% up to the 23rd of this month. Refrigerators also rose by 73%, 30%, and 54% respectively during the same period.
Hyundai Home Shopping's sales growth rates for large home appliances such as TVs, refrigerators, washing machines, and dryers in January and February this year also increased by 46% and 45%, respectively. A home shopping industry official said, “Considering that the average sales growth rate for electronics in home shopping is about 25%, this is a very unusual situation.”
It is analyzed that with the spread of the novel coronavirus infection (COVID-19), the increase in telecommuting, and the establishment of “social distancing” that discourages going out, the proportion of online non-face-to-face purchases such as e-commerce is increasing from daily necessities to home appliances.
On the other hand, offline store sales growth rates for electronics are decreasing. According to E-Mart, the offline store TV sales growth rate in January this year increased by 39.7% compared to the same period last year, but shrank to 10.6% in February when COVID-19 rapidly spread, and to 0.6% as of the 23rd of this month.
During the same period, refrigerator sales growth rates dropped to single digits, from 39.7% in January to 8.3% in February and 2.1% this month, and washing machines also decreased from 64.5% in January to 17.4% this month.
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The industry expects that if COVID-19 prolongs, this trend may continue for the time being. An electronics industry official said, “Based on last month’s TV shipment volume, the proportion of offline sales has decreased and online sales have increased, resulting in sales similar to the same period last year,” adding, “If the impact of COVID-19 continues, this sales structure is expected to persist for the time being.”
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