SSG.com Gift Service Experiences Rapid Growth Amid Social Distancing

[Asia Economy Reporter Seungjin Lee] It has been revealed that cases of sending gifts online have increased due to the impact of the novel coronavirus infection (COVID-19).

SSG.com announced on the 23rd that an analysis of sales in the ‘Gift’ specialty section from February, when ‘social distancing’ was fully implemented, until the 22nd of this month showed that sales increased by 43.2% last month compared to the previous year and by up to 50% this month.

In particular, among the 10 million products available for gifting, an examination of the top 100 products in terms of sales volume and revenue revealed a prominent consumption trend for ‘hometainment’ products for the ‘homebody’ group, home appliances and jewelry for anniversaries, and fragrance-related products.

First, as more people enjoy leisure time at home, gifts related to hobbies for the ‘hometainment’ group have significantly increased. The most popular product recently in the SSG.com Gift specialty section is the digital code for ‘Nintendo Animal Crossing: New Horizons.’ While physical game cartridges are currently scarce and hard to obtain, this product allows immediate game installation by purchasing a download code.

It is analyzed that the demand for gifting has increased as more people spend leisure time at home, either enjoying games alone or with acquaintances. Additionally, since the game content involves hobbies such as fishing, insect collecting, and home decoration, it seems to have psychologically satisfied customers who minimize outdoor activities.

Due to social distancing, as many events such as weddings have been canceled or simplified, cases of sending only gifts instead of attending have also increased.

In particular, it was analyzed that there are many cases of gifting large and small home appliances. Clothing care devices (stylers) were the most popular, and cases of gifting large appliances such as TVs, refrigerators, washing machines, and dishwashers also increased. The advantage is high convenience as the recipient can choose without needing to confirm the address or installation schedule. Small appliances such as cordless vacuum cleaners, hair dryers, toasters, and capsule coffee machines were also popular.

‘Pure Gold Angel Wing First Birthday Ring,’ a gift product for first birthday parties, newly entered the top ranks. Most customer reviews mentioned purchasing it as a gift. An overwhelming number of customers gifted a ring made of one don (3.75g) of gold to celebrate the first birthday. Additionally, a ‘Pure Gold Gold Spoon Plaque’ priced around 600,000 KRW was also sold.

As time spent indoors increased rather than going out, the number of people gifting ‘fragrance’ also increased accordingly. Purchases of scents suitable for spring stood out. A representative example is the fabric perfume ‘L’Occitane Relaxing Pillow Mist,’ which newly entered the rankings. This product, sprayed on pillows and blankets before sleep to aid rest, features a lavender scent that helps relax the body.

Also, gifts related to diffusers that change the scent of the entire home have increased. The ‘Jo Malone’ brand was popular, with floral scents such as ‘Lime Basil,’ ‘Freesia,’ and ‘Rose’ mainly gifted.

Currently, the main user base of SSG.com’s gifting service is people in their 20s and 30s, accounting for 70% of all customers. SSG.com views this as reflecting the generational characteristic of being accustomed to online interactions and preferring non-face-to-face meetings and purchasing methods when giving gifts to others.

Han Dong-hoon, Executive Director of Platform Planning at SSG.com, explained, “With the practice of social distancing expanding untact consumption, customers’ purchasing patterns have also broadened widely, ranging from products worth millions of won to exchange vouchers worth a few thousand won.”

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