More Than Cash, Full of Sincerity... Sending New Year's Money as e-Coupons Too

Practical Non-Face-to-Face Lunar New Year Gifts
Gmarket Sales Up 48%
Department Store & Cultural Gift Certificates Up 81%
Food Delivery & Bakery Also Advance
Convenience Store Gift Certificates Popular for Practicality
Auction Sales Surge 347%

[Asia Economy Reporter Yuri Kim] #Mr. Lee, a man in his 40s, decided not to visit his parents' home this Lunar New Year, where he usually goes every holiday. Although he wants to see his parents and siblings after a long time, he chose to follow the government's guideline prohibiting gatherings of five or more people due to the difficult times caused by COVID-19. Feeling regretful, he plans to send money to his parents but decided to give e-coupons as New Year's money to his nephews and nieces. He thought it was practical because it felt more sincere than just giving cash and could be used like cash without worrying about their preferences.

As Lunar New Year approaches, more people are turning on their smartphones to look for 'e-coupons' rather than heading to banks to get new bills for New Year's money. This is a facet of the 'contactless Lunar New Year' due to the spread of COVID-19.

◆Gift certificates over cash transfers= As of the 8th, the sales growth rate of e-coupons sold on open markets has surged ahead of the Lunar New Year. From January 1 to 4, the total sales volume of e-coupons on Gmarket increased by 48% compared to the same period before last year's Lunar New Year holiday (January 14?17). Among these, the sales growth rate of department store and cultural gift certificates, which are widely chosen as gifts due to their diverse usage, reached 81%. This reflects increased demand for gift certificates instead of cash such as New Year's money. Especially after the Lunar New Year holiday, with the new school term starting, there is a rise in demand for department store and cultural gift certificates that can be used for various purposes like clothes and school supplies.

There has also been an increase in e-coupon gifts emphasizing practicality. During the same period, food delivery-related e-coupon sales on Gmarket rose by 57%. Auction also saw a 23% increase in food delivery-related e-coupon sales during the same period. Since it is not only a contactless period but also a time when going out freely is restricted, food gift certificates that can be conveniently ordered and delivered to each home are popular as gifts.

Sales of bakery gift certificates redeemable for coffee, bread, and more have also increased significantly. According to 11st’s data on e-gift certificate sales growth from January 23 to February 4 before Lunar New Year, bakery items surged by 143% compared to the same period last year. Representative brands include Paris Baguette and Tous Les Jours. Starbucks and other cafe e-coupons also rose by 11%.

◆Practicality emphasized... Convenience store gift certificates popular= Among the items frequently gifted instead of New Year's money, convenience store gift certificates were popular, with the 50,000 KRW price range being the most common. On Auction, sales surged by a whopping 347% during this period. Looking at the sales data by convenience store, the sales growth rate of 50,000 KRW mobile gift certificates, which are often purchased as gifts, stood out. Seven Eleven saw a 50.2% increase in sales of 50,000 KRW gift certificates from January 28 to February 3 compared to the same period before last year's Lunar New Year holiday. During the same period, CU also showed a clear increase in 50,000 KRW gift certificate sales; overall sales growth was 11%, but 50,000 KRW gift certificate sales surged by 62%.

Gift certificates usable at SPC Group brands such as Paris Baguette also saw a significant increase in sales. Although limited to dining, they are popular because children can buy snacks like bread, drinks, and ice cream. According to Sektanine, SPC Group’s marketing solutions affiliate, the most sold mobile gift certificate during last year's Lunar New Year was the 30,000 KRW denomination. This year’s data is still being collected, but popular items include Baskin Robbins ice cream cakes (30,000 KRW) and half-gallon ice cream (26,500 KRW).

An industry insider said, "It seems that the gift is gaining attention because it gives the feeling of sincerity in choosing rather than just money and fits the recent trend of emphasizing practicality to avoid clashing with recipients' tastes," adding, "Sales are expected to increase further during the Lunar New Year holiday."

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