First Week of Donghaeng Sale... 2030 'Luxury Donghaeng' Hits Big

'Duty-Free Luxury Brand Fair' with Released Inventory
Revenge Spending Explodes Due to Overseas Travel Restrictions
Lotte Department Store Overseas Luxury Goods Sales Surge 78%
Suburban Outlet Sales Also Drive Growth

Large Marts Mandatory Sunday Closures
Overcome with Meat Discounts and Other Events

On the 26th at 11 a.m., customers are browsing clothes at the 'Korea Fashion Market' event held on the B1 floor of Lotte Department Store Jamsil branch.

[Asia Economy Reporters Hye-seon Lim, Min-young Cha] "I stopped by to buy some kitchenware, but since they were holding the Donghaeng Sale, I ended up buying jeans for my college daughter. Compared to May, it feels like the number of customers has increased two to three times." (Ms. Kim Su-yeon (pseudonym), housewife in her 50s)

During the first week of the 'Korea Donghaeng Sale,' the distribution industry achieved its best performance since the outbreak of COVID-19. The fashion industry, which had the toughest time in the first half of the year, finally smiled. Consumer trends showed a typical 'revenge consumption' pattern. In terms of purchasing behavior, the 'untact' (contactless) trend deepened, with increased interest focused on outdoor and sports apparel.

Luxury 'Revenge Consumption' Instead of Overseas Travel

From the 26th to the 28th, Lotte Department Store's total sales increased by 16% compared to last year's sale period. Sales of overseas luxury goods surged by 78%. The duty-free luxury goods fair (held at 8 department stores and outlets) contributed to this. The duty-free luxury goods fair sold 6.3 billion KRW worth of products by the 28th, consuming 70% of the total stock. The increase in luxury consumption is attributed to revenge consumption. With international flights blocked and overseas travel impossible, major luxury brands released inventory at up to half price, boosting consumption. A department store official said, "We believe that young people in their 20s and 30s, who couldn't travel abroad, compensated by purchasing luxury goods, increasing sales. The 20s and 30s age group accounted for more than 60% of total purchases." As people spent more time at home, sales of furniture, tableware, and home appliances also increased by 16%.

Shinsegae Department Store and Hyundai Department Store showed similar trends. Shinsegae Department Store's total sales increased by 20.9%. Sales of luxury goods, daily necessities, and home appliances rose by 55.3%, 50.0%, and 123.7%, respectively. Hyundai Department Store's total sales increased by 15.2%, with luxury goods up 37.2% and living products up 45.6%. Luxury goods also drove sales at suburban outlets. Lotte Outlet's sales nearly doubled, increasing by 98% year-on-year. Luxury goods sales rose 98% due to inventory sales.

Fewer Gatherings, Solo Outdoor Activities

The fashion industry is evaluating that the untact trend has fully taken hold. According to Lotte Department Store, sales of outdoor and sports apparel and accessories increased by 25.0% and 18.0%, respectively. Hyundai Department Store also saw sales increases in golf (30.1%) and sports (18.3%) product categories. Women's fashion product sales rose by 2% and 8.5%, respectively. Considering that sales had decreased by 16% and 29% in April and May, this is a significant rebound, though still below expectations.

A fashion industry insider explained, "After COVID-19, more companies have adopted permanent telecommuting, and gatherings have significantly decreased, so consumption of women's and men's clothing fell short of expectations." The insider added, "Interest in health has increased due to the pandemic, and more people are engaging in solo camping, hiking, and other outdoor activities, leading to increased sales of outdoor and sports-related fashion and accessories."

Mandatory Sunday Closures at Large Marts, Unique Marketing

Large marts could not operate on Sundays due to mandatory closures but still performed well. Lotte Mart's sales from the 25th to the 27th increased by 7.2% compared to the previous week. Sales of fruits (6.4%), vegetables (3.3%), and livestock products (13.6%) rose. Emart saw increased sales in liquor (15.7%), snacks (10.4%), and air conditioners (48.7%). Large marts launched various marketing campaigns to sustain the recovery of consumer sentiment.

Emart Traders introduced 'meat discount coupons' to capture summer vacation demand. They offer four 10,000 KRW discount coupons per week. The price is 19,800 KRW when paid with a Samsung Card. By purchasing the 'meat discount coupon' with a Samsung Card and using the coupons weekly, customers can buy meat products at about a 16% discount over four weeks. Lotte Mart, recognizing that 'time' is a new core competitive factor alongside quality and price in fresh foods, implemented a 'super fresh strategy' and sells 'eggs laid today' in stores. The eggs are sold in limited quantities of about 200 packs, priced at 2,980 KRW for a 10-egg pack of regular eggs.

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