COVID-19 Changed Consumption... Buying Imported Cars and Getting Plastic Surgery Instead of Traveling

Sales in Travel Industry Down 59%, Movie Theaters Down 57%, Theme Parks Down 53%
Internet Shopping Up 41%, Imported Car Stores and Plastic Surgery Clinics Also Booming

[Asia Economy Reporter Kim Min-young] It has been revealed that consumer behavior has changed significantly due to the novel coronavirus infection (COVID-19). Sales related to travel have sharply declined, and grocery shopping at large supermarkets has been replaced by online orders. As remote work has prolonged, plastic surgery clinics have experienced an unexpected boom.

On the 21st, Hana Financial Management Research Institute analyzed the "Changes in Consumer Behavior Brought by COVID-19" based on personal credit card sales data from Hana Card. The results showed that in the first quarter of this year, travel agencies, movie theaters, and theme parks suffered the most severe sales impacts. Travel industry sales recorded a -59% decrease compared to the same period last year. During the same period, movie theaters and theme parks also saw sales plunge by 57% and 53%, respectively. Airline sales were also found to have been halved.

Due to entry restrictions imposed by various countries, the number of travelers drastically decreased, causing duty-free shop sales to drop by 52% compared to the same period last year. In particular, during March, when COVID-19 peaked, sales plummeted by 88% compared to the same month the previous year.

As consumer behavior shifted online, online and offline shopping sales diverged sharply. Internet shopping sales in the first quarter surged by 41% compared to the same period last year. This was due to reduced offline consumption amid the spread of COVID-19 and a significant increase in contactless shopping sales. Home shopping sales also increased by about 19% during the same period.

On the 10th, Myeongdong in Jung-gu, Seoul is quiet due to the impact of COVID-19. Photo by Moon Honam munonam@

On the other hand, most offline shopping sales, such as outlet stores (-31%), electronics specialty stores (-29%), department stores (-23%), and large supermarkets (-17%), sharply declined. However, sales at convenience stores (6%), supermarkets (12%), butcher shops (26%), and agricultural product stores (10%), which are relatively close to residential areas, increased. Hana Research Institute interpreted this as the spread of the home cooking (home + cooking) phenomenon, where consumers purchase ingredients and cook at home. While bar sales decreased, sales at liquor specialty stores increased by about 20%, which was also seen as part of the 'home drinking' trend.

Surprisingly, some industries experienced a boom. During the same period, plastic surgery clinic sales increased by 9%. This is analyzed as a result of increased demand for procedures and plastic surgeries due to prolonged remote work and delayed school reopening. Sales of imported new cars also rose by 11%, contrasting with decreases in domestic new cars (-23%) and used cars (-22%). The research institute explained this as part of 'revenge consumption,' where suppressed spending is released all at once.

Bicycle store sales also increased by 45%. This indicates that while indoor exercises such as fitness centers are avoided due to infection concerns, more people are exercising outdoors.

Meanwhile, credit card usage in the first quarter significantly decreased. The net decrease in credit card sales is estimated to be between 16 trillion and 18 trillion won. Jung Hoon, a research fellow at Hana Financial Management Research Institute, said, "Consumer sentiment is subdued, and emergency disaster relief funds are expected to be mainly used for purchasing daily necessities such as groceries, so it will be difficult for overall industry sales to normalize in the near future." He added, "Especially travel, airlines, accommodation, leisure, and entertainment industries are expected to experience negative growth this year."

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