Department Stores' All-Out Effort Ahead of Chuseok Season... Expanding Premium Gifts and Increasing Contactless Services

[Asia Economy Reporter Seungjin Lee] The department store industry is putting everything on the line for the first Chuseok peak season since the outbreak of the novel coronavirus disease (COVID-19). Due to the impact of COVID-19, department store sales plummeted in the first half of this year, and as the number of confirmed cases recently surged, they have shifted their focus from attracting customers to strengthening Chuseok gift sets. In line with the spread of non-face-to-face consumption culture, they are introducing unique marketing and gift sets, and expanding high-priced premium gift sets.

On the 12th, as the atmosphere of refraining from hometown visits formed due to the influence of COVID-19, it was found that the pre-order sales performance of Chuseok gift sets at each department store and large mart significantly improved compared to last year. In particular, the compensatory psychology for not being able to visit parents or those to whom they are grateful in person, and the savings on travel expenses led to a significant increase in the purchase of high-priced premium gifts despite the economic downturn.

Shinsegae Department Store reported that sales of Chuseok gift sets from August 24 to September 9 increased by 44.6% compared to last year. Among them, the most popular gifts were the 950,000 KRW 'Luxury Traditional Dried Yellow Corvina Manbok' gift set and the 1,100,000 KRW 'Luxury Korean Beef Special Grade' set. Lotte Department Store's pre-order sales of Chuseok gift sets this year increased by 37.5% compared to the same period last year. By category, meat gift sets centered on Korean beef increased by 149%, fresh produce by 141%, and dried yellow corvina by 105%, all more than doubling last year's sales performance.

Following this trend, each department store has begun the main sales of Chuseok gift sets and strengthened premium gift sets. First, Lotte Department Store prepared about 500 items including ultra-high-end prestige gift sets, premium sets, and regional specialty sets. In particular, the quantity of premium and popular sets was expanded by more than 20% compared to last Chuseok.

Among the prestige sets, the 'KS 1994 Old Vintage Grand Cru Set,' consisting of three bottles of wine from a first-class winery, is sold in a limited quantity of only two sets at 7 million KRW. The top-grade Korean beef set is limited to 100 sets and sold at 1.7 million KRW, while the dried yellow corvina set and truffle mushroom set are offered at 2 million KRW and 550,000 KRW respectively.

Lotte Department Store also introduced a 'Gift Set Subscription Voucher' for this Chuseok, allowing recipients to receive gifts in installments. Those who receive the subscription voucher can pick up meat four times and fresh produce twice at nearby Lotte Department Stores. The validity period is from September 7 to November 22 (October 25 for fresh produce).

Shinsegae Department Store increased the volume of gift sets by 20% compared to last Chuseok. They are offering differentiated popular items such as Korean beef omakase sets in collaboration with the Korean beef specialty restaurant 'Motungiwoo,' and dried yellow corvina fed with apple, citron, and green tea water. Sets of boneless hairtail or red shrimp, which can be cooked immediately without special preparation, are newly introduced products this year. In line with increased interest in health due to COVID-19, the volume of health food products was expanded by 20%, and hygiene product sets such as comprehensive mask sets were also prepared.

Additionally, during the main sales period of Chuseok gift sets (September 14?29), Shinsegae Department Store will sell flower and potted plant subscriptions and fruit subscriptions as Chuseok gifts. First, the Shinsegae Department Store main branch and Gangnam branch will sell flower and potted plant subscription vouchers to the first 100 customers at the flower brand 'Jane Packer' stores. The price is 500,000 KRW.

Recipients of the subscription voucher can inform the serial number of the voucher, delivery address, and desired plant to the Jane Packer store, and receive one of potted foliage plants, fresh flowers, or orchids monthly from October to December. A seasonal fruit subscription delivering 3 to 5 types of fruits weekly to the doorstep for a month was also launched as a Chuseok gift. The subscription voucher is priced at 180,000 KRW and will be sold to the first 30 customers at the fruit gift corner of Shinsegae Gangnam branch.

Hyundai Department Store is increasing the volume of premium sets priced over 400,000 KRW by 1.5 times compared to last Chuseok. They are expanding the number of Korean beef products including sets with top-grade Korean beef and truffle mushroom salt and various sauces, natural pasture Korean beef sets, and antibiotic-free female Korean beef sets.

Also, the specialized salted dried yellow corvina seasoned with premium salts such as French Guerande salt will be sold in a limited quantity of 1,200 units, doubling last Chuseok's volume. Furthermore, the Shine Muscat grape products have been increased by 50% compared to last Chuseok, preparing a total of 6,000 sets across 11 items, and the volume of apple mangoes has been tripled, preparing 7 items in total.

Galleria Department Store will conduct the main sales of Chuseok gift sets at all food halls from September 14 to 29. The luxury store in Apgujeong-dong, Gangnam-gu, Seoul, will continue main sales until the 30th.

Galleria Department Store offers over 30 products including fresh produce, meat, and private brand (PB) sets through KakaoTalk Gift service to enable non-face-to-face purchases.

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