Shopping Online Instead of Going to the Mart, Bicycling Instead of the Gym (Comprehensive)

Large Retailers, Department Stores, and Outlets See Sharp Sales Decline
Purchasing Goods Online from Home
Bicycle Sales Surge Amid Outdoor Exercise Boom
Imported New Cars and Plastic Surgery Experience Unexpected Demand
Pharmacy Sales Increase Due to Public Mask Sales

[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 Sales related to travel have sharply declined, and grocery shopping at large supermarkets has been replaced by online orders.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 hits. 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 sharply 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 as much as 88% compared to the same month last year.

Sales in sectors such as academies, entertainment, and restaurants also saw significant declines. These industries, characterized by high indoor density, were advised to close temporarily, resulting in unprecedented drops in performance. Sales in martial arts dojangs and academies in March fell by 85%, arts and physical education academies by 67%, foreign language academies by 62%, and entrance exam and tutoring academies by 42% compared to the same month last year. Karaoke rooms and entertainment bars also saw sales decrease by 50% and 39%, respectively.

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 (untact) shopping sales. Home shopping sales also increased by about 19% during the same period.

On the other hand, most offline shopping sales, including 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%) located 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 to be due to increased demand for procedures and plastic surgeries as remote work prolonged and school openings were delayed. 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.

Additionally, with the surge in pharmacy visits due to public mask sales, pharmacy sales in the first quarter also increased by about 15%.

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

Meanwhile, credit card usage in the first quarter sharply 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, stated, "Consumer sentiment is depressed, and emergency disaster relief funds are expected to be mainly used for purchasing daily necessities such as food ingredients, so it will be difficult for overall industry sales to normalize in the near term." He added, "In particular, 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.