Increase in 'Jipkok' Due to COVID-19... Rise in Sales of Large Home Appliances

People Replacing Large Appliances Like Washing Machines and TVs
Despite Negative Consumer Sentiment, Sales of Home Interior Products Increase

[Asia Economy Reporter Lim Hye-seon] Sales of large home appliances are increasing.

According to the distribution industry on the 5th, sales of home appliances at department stores have been on the rise since July. Lotte Department Store reported that sales of large home appliances such as refrigerators and washing machines increased by 2% compared to the same period last year during the early stages of the COVID-19 pandemic (March to May). Sales increased by 25% year-on-year in July and August, when COVID-19 resurged. Shinsegae Department Store also saw a 4.5% increase in large home appliance sales during the early COVID-19 period, but sales rose by 30.9% in July and August. Hyundai Department Store's sales of TVs and washing machines increased by 44.8% and 85.6%, respectively, in July and August.

The increase in sales of large home appliances is largely due to the impact of COVID-19. As the spread of COVID-19 has led to longer periods spent at home, more people are replacing their home appliances and furniture. Nam Seong-hyun, a researcher at Hanwha Investment & Securities, explained, "Although the consumer economy remains negative and the penetration rate per household exceeds 1.0, sales of home interior-related products are expected to steadily increase," adding, "We assess that Lotte Hi-Mart's operating environment in the third quarter is more positive than expected."

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