Post-Corona Consumption Keyword... 'Distance (DISTANCE)'

KB Kookmin Card Big Data Analysis for the First Half of the Year
Comparison in 4 Stages According to the Spread of COVID-19
Expansion of Digitalization in Daily Life

[Asia Economy Reporter Ki Ha-young] An analysis has emerged suggesting that 'distancing (DISTANCE)' will become a new consumer behavior trend in the post-COVID-19 era. This includes not only the digitalization of daily life but also an increase in contactless payments and the expansion of local consumption.

KB Kookmin Card selected these keywords on the 29th through an analysis of big data on card usage by its customers in the first half of this year. The analysis was conducted by dividing the period into four phases according to the spread of the novel coronavirus infection (COVID-19): ▲Pre-spread (January 1 to February 11) ▲Spread phase (February 12 to March 10) ▲Impact phase (March 11 to April 21) ▲Adjustment phase (April 22 to May 19).

Online Growth and Leisure Distancing

The analysis showed that due to the impact of COVID-19, digitalization of life (Digitalization) such as growth in online sectors occurred, along with a preference for outdoor leisure spaces over indoor ones (Inside-Out).

From January 1 to May 19 this year, over a total of 20 weeks, card spending in sectors such as delivery apps, video and digital content, and gaming increased by more than 50% compared to the same period last year. In particular, card usage for delivery apps and video/digital content nearly doubled during the spread phase from February 12 to March 10 compared to the previous year. Looking at changes in card spending by age group during the impact and adjustment phases in major online sectors, those under their 20s showed increased usage in gaming, people in their 40s and 50s in delivery apps, and those aged 60 and above in video and digital content sectors, with increases exceeding the overall age group average.

Leisure venues also changed due to social distancing and avoidance of the "3 Cs" (closed spaces, crowded places, close-contact settings). Sectors where physical distance between individuals can be maintained, such as golf courses, billiard halls, and bowling alleys, showed relatively smaller decreases in card usage during the spread and impact phases, whereas amusement parks and theme parks saw significant declines. Golf courses experienced only a 1.2% decrease in card usage during the spread phase compared to the same period last year, and card usage increased by 3.8% and 9.1% during the impact and adjustment phases, respectively. In contrast, amusement parks and theme parks saw card usage drop to 26.6% and 22.9% of last year's levels during the spread and adjustment phases, respectively, remaining at about half (51.2%) of last year's usage during the adjustment phase.

Smaller Dining Scale and 50% Growth in Delivery Apps

The scale of dining out has shrunk to smaller groups (Small-Socializing), and the increase in contactless payments (Through), which had been steadily growing in recent years due to the rise of single-person households and advances in digital technology, accelerated further. During the analysis period, card usage at restaurants and pubs generally contracted after the spread of COVID-19. In particular, the scale of dining out at restaurants decreased. During the spread phase, transactions under 30,000 KRW decreased by about 20% compared to the pre-spread period, while transactions over 100,000 KRW, presumed to involve multiple diners, dropped to half of the pre-spread level.

Use of delivery apps increased by more than 50% compared to the same period last year. Delivery apps, which had been showing steady growth recently, saw card usage increase by about 20% from the spread phase through the adjustment phase compared to before the spread, aligning with the preference for contactless payments after COVID-19. By age group, the increase in delivery app usage was particularly notable among customers aged 40 and above, with usage among those 40 and older increasing by more than 30% during the impact phase compared to before the spread.

Expansion of Local Consumption Within 1km

Due to COVID-19, dining out at offline restaurants has been replaced (Alternative) by home meal sectors represented by grocery stores, online food markets, and meal kits, along with new lifestyle pattern changes (New Normal) such as staggered commuting times. Card usage for dining out at offline restaurants decreased by nearly 20% during both the spread and impact phases compared to before the spread. In contrast, the home meal sector, consisting of grocery stores, side dish shops, online food markets, and meal kits, saw a 21.5% increase in usage during the adjustment phase compared to before the spread.

Local consumption (Closer), where necessary purchases are made near home rather than far away, expanded. During the analysis period, merchants located within a 1km radius of customers' residential addresses experienced smaller decreases in card usage compared to merchants located farther away. For distant merchants, card usage dropped to 79.5% of last year's level at the beginning of the impact phase, whereas local merchants maintained 97.8% of last year's usage, showing relatively minimal decline. The online education sector also showed growth (Educational Change). Online foreign language courses increased card usage by 26.6% during the spread phase compared to the previous year, and online courses related to college entrance exams increased by 29.2% during the impact phase compared to the same period last year.

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