Karaoke and Entertainment Businesses Faced Greater Sales Impact in the Second Wave of COVID-19 Than the First Wave

Hana Financial Research Institute Publishes Report "Changes in Consumer Behavior Brought by COVID-19 II"
Second Wave Shows Different Consumption Patterns Compared to First Wave
Comparative Analysis of Industry Sales Between COVID-19 First and Second Waves

[Asia Economy Reporter Kangwook Cho] Entertainment facilities such as karaoke rooms and pubs experienced a larger decline in sales during the second wave of the COVID-19 pandemic compared to the first wave. Luxury-related sectors, including art pieces, watches, and jewelry, also saw significant sales decreases. Conversely, sectors related to entrance exam preparation and theme parks or leisure accommodations recorded sales growth during the second wave.

The most pronounced differentiation by sub-sector was observed in the medical industry, with a notable increase in demand for 'personal mobility' and 'health and green hobbies.'

On the 16th, Hana Financial Management Research Institute revealed these findings in its report titled "Changes in Consumer Behavior Brought by COVID-19 II." The study compared sales figures by industry between the first and second waves of the pandemic.

According to the survey, industries related to entrance exam preparation and travel/leisure accommodations such as theme parks saw sales increase during the second wave compared to the first. In contrast, entertainment sectors like karaoke rooms and pubs, as well as multi-use facilities, experienced a wider sales decline in the second wave, highlighting clear differentiation among industries.

Overall sales levels showed a slight recovery, moving out of negative growth until May to a cumulative 1.1% increase by October. However, sales began to decline again after the first emergency disaster relief fund ended, suggesting that expectations for economic recovery remain premature.

Home cooking and home drinking-related sectors saw sales increase during the second wave compared to the first wave or the previous year's cumulative figures, indicating a positive impact of COVID-19 this year. Within the travel industry, leisure accommodations and theme parks showed signs of sales recovery during the second wave. However, travel agencies and airlines suffered severe sales slumps, underscoring differentiation even within the same industry.

Home Cooking and Home Drinking Sectors See Mixed Fortunes with Entertainment and Multi-use Facilities

Additionally, the research institute compared Hana Card sales data between the first wave (March) and second wave (September) of COVID-19 across approximately 230 industries. Entertainment facilities such as adult arcades (-89%), karaoke rooms (-72%), and pubs (-65%) experienced relatively larger sales declines during the second wave. Luxury-related sectors like art pieces, watches, and jewelry also showed marked sales decreases.

Conversely, entrance exam academies (137%) and theme parks (121%), representing education and travel/leisure sectors, saw sales growth during the second wave. This was largely due to a base effect from poor sales in the first wave, but also attributed to the urgency of exam preparation and increased preference for outdoor facilities as vigilance relaxed.

Home cooking and home drinking-related sectors, including liquor specialty stores and meat markets, saw sales increase during the second wave compared to both the first wave and the previous year's cumulative figures, indicating overall benefits from COVID-19. However, entertainment and multi-use facilities continued to struggle with worsening sales declines.

Even within the same industry, differentiation by sub-sector was evident. In travel and leisure, leisure accommodations and theme parks had not yet reached previous year sales levels but were recovering compared to the first wave. In contrast, airlines and travel agencies experienced deepening sales slumps.

Medical Industry Shows Most Pronounced Differentiation by Sub-sector

The medical industry showed the most significant sales differentiation by sub-sector due to COVID-19. Sales in neuropsychiatry increased by 14% due to a rise in patients suffering from COVID blues amid the prolonged pandemic. Specialties less affected by COVID-19, such as plastic surgery (10%), ophthalmology (24%), and dermatology (10%), maintained stable sales throughout 2020.

Conversely, otolaryngology (-11%), pediatrics (-10%), general hospitals (-6%), and Korean medicine clinics (-2%) were negatively impacted by COVID-19.

Meanwhile, comparing sales changes during the week including this year's Chuseok holiday to last year's, the 'contactless Chuseok' led to notable sales declines in transportation-related sectors such as highway toll cards (-55%), railways (-46%), and gas stations (-21%).

Many people spent the holiday period on leisure and hobbies instead of visiting their hometowns. Notably, leisure and hobby sectors such as bicycles (+137%), golf and fishing equipment (+72%), and golf courses (+45%) saw high sales growth rates during Chuseok.

With reduced burden of returning home due to contactless Chuseok, many used designated driver services (59%) the day before the holiday, and entrance exam academies (25%) benefited from special Chuseok lectures.

Representative Consumption Trends of COVID-19: Personal Mobility, Green Hobby, and Interior Design

COVID-19 has brought significant changes in consumer behavior, notably a sharp increase in demand for 'personal mobility' and 'health and green hobbies.'

Concerns about public transportation led to a surge in demand for bicycles (92%), motorcycles (55%), and driver's licenses (19%). Increased interest in self-grown vegetable gardens and plant interiors boosted sales in flower and plant sectors (9%) and fertilizer and seed industries (15%) compared to the previous year.

With more people working from home and reducing outdoor activities, time spent at home increased, prompting many to improve their living environments. Consequently, furniture stores (25%) and indoor interior sectors (15%) saw significant sales growth compared to last year.

Researcher Yang Jungwoo stated, "In 2020, sales differentiation by sub-sector became more pronounced due to COVID-19, and consumer behavior tended to focus on 'personal' and 'green' aspects. However, it remains necessary to observe whether these will establish as long-term trends."

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