The 'Hygiene Products Set' Appears in Gift Sets for the First Time... How COVID-19 Changed the Chuseok Market

On the 11th, promotional models are announcing the pre-order sale of Chuseok gift sets at Emart Seongsu Branch in Seongdong-gu, Seoul. The pre-order sale of Chuseok gift sets, which will be held from the 13th to September 18th, will also offer 'untact' services due to the impact of COVID-19. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Seungjin Lee] The landscape of the Chuseok peak season in the distribution industry has changed due to the novel coronavirus infection (COVID-19). The proportion of Chuseok gift sets sold online has significantly increased, and hygiene products and home meal replacements (HMR) have taken the place of Korean beef and premium fruits.

Online-Exclusive Gift Set Volume Increases by Up to 70%

According to the distribution industry on the 24th, department stores and large marts have increased the volume of online-exclusive Chuseok gift sets by 30 to 70% compared to last year’s Chuseok, fearing that the offline Chuseok peak season might disappear due to the impact of COVID-19.

Lotte Department Store resumed pre-order sales of holiday gift sets this Chuseok, which had been suspended since this year’s Lunar New Year. Due to the long rainy season, sales decreased, and it was judged that the Chuseok peak season would not be as good as usual because of COVID-19. The volume of pre-order gift sets was increased by about 30%, and the pre-order discount rate was also raised, offering up to 70% discounts on 150 items.

Shinsegae Department Store increased the volume of online-exclusive products sold through the Shinsegae Group’s integrated online mall ‘SSG.com’ by 70% compared to last year’s Chuseok. The proportion of popular items amid the recent COVID-19 situation, such as wine and HMR, was increased.

Hyundai Department Store will sell Chuseok gift sets on its online mall ‘The Hyundai.com’ starting from the 7th of next month. Customers can purchase from The Hyundai.com without visiting the department store and have the items delivered to their desired location. The volume of online-exclusive gift sets was also increased by about 30% compared to last year’s Chuseok.

Lotte Mart strengthened benefits for pre-order purchases as pre-order sales account for 40% of total gift set sales. Especially this year, anticipating an increase in online pre-order purchases due to COVID-19, they are holding an event offering gift certificates worth up to 1 million KRW during the pre-order period.

AK Plaza has released a limited edition of 2,000 'AK Deokbun-ae (愛)' hygiene product gift sets in collaboration with Aekyung Industrial ahead of this Chuseok. The photo shows the 'AK Deokbun-ae' hygiene product gift set. (Photo by AK Plaza)

‘Masks’ Instead of ‘Korean Beef’... Distribution Industry Strengthens Contactless Services

Reflecting the times where hygiene products are given instead of precious ingredients to loved ones, the composition of Chuseok gifts has diversified. AK Plaza released a limited edition of 2,000 ‘AK Deokbunae (愛)’ hygiene gift sets in collaboration with Aekyung Industrial ahead of this Chuseok. The set includes ‘Rapsin’ hand sanitizer, hand sanitizing tissues, hand wash, and masks.

Emart introduced hygiene gift sets consisting of hand sanitizers, masks, and hand cleansers for the first time this year. Also, as fear of COVID-19 infection grew, the ‘Visiting Service’ that was conducted at about 20 stores last Lunar New Year was expanded to all stores. Customers can schedule visits by phone consultation with a nearby Emart, and Emart visits the customer’s home (or workplace) according to the reserved schedule for consultation and payment. New services such as easy set purchases through mobile applications and sending gifticons have also been introduced.

Lotte Mart increased the proportion of health functional foods by about 10% compared to last Chuseok and prepared personal hygiene gift sets for the first time. Market Kurly increased the proportion of health functional foods from 15% last year to 40% this year to prepare for Chuseok. Additionally, as the economy worsened due to COVID-19, a large number of mid-priced gift sets under 50,000 KRW appeared. Practical gift sets priced between 10,000 and 20,000 KRW, such as coffee and hair & body wash products, and mid-priced fruit sets priced between 30,000 and 40,000 KRW, including melon, Hallabong, and kiwi, also increased.

Meanwhile, a survey on Chuseok gifts conducted by Lotte On from the 3rd to the 5th with 3,000 subscribers showed that half (50.1%) of respondents chose e-coupons as the most desired gift. This was followed by fresh foods (fruits, Korean beef), health functional foods (red ginseng, vitamins), and processed foods (ham, tuna) in order of preference.

It is analyzed that as fear of COVID-19 infection grows, more consumers prefer e-coupons that allow them to set the desired time and place to receive gifts. In the same survey, 62.5% of respondents said they would purchase Chuseok gifts through online distribution channels.

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