'Homeconomy and Online Shopping'... Changes in Consumer Trends in the COVID-19 Era

[Asia Economy Reporter Kim Hyewon] 'H.O.M.E. S.T.A.Y'

The Korea Chamber of Commerce and Industry analyzed recent changes in consumer trends caused by COVID-19 through the 'Survey on Changes in Consumer Behavior and Implications in the COVID-19 Era,' conducted on 1,000 consumers on the 20th, and summarized the consumption keywords in the COVID-19 era as above. As COVID-19 prolonged, Homeconomy, Online shopping, More Health, and Ethical consumption have become common consumption trends. In addition, shopping experiences through new channels such as Subscription services, Trade of used goods, Act of reward, and live commerce are gradually spreading.

Fear and anxiety about COVID-19 increased the time spent at home, leading to Homeconomy consumption and naturally resulting in increased use of online shopping. According to the survey, 93.6% of respondents said that the 'time spent at home' increased after COVID-19. Activities that increased with more time at home included shopping (61.3%), watching movies (54.0%), gaming (34.6%), cooking (34.5%), and exercising (23.3%), making the home a place not only for rest and leisure but also for various economic activities.

Eight out of ten people (78.4%) answered that their use of online shopping increased compared to before COVID-19, and the most frequently purchased items were food and beverages (70.8%), indicating that online channels have emerged as a major purchasing place for food. In particular, online grocery shopping deeply penetrated daily life with the convenience of fast doorstep delivery. Nine out of ten people (89.1%) experienced online grocery shopping in the past year, and among them, 72.5% said their usage frequency increased compared to before COVID-19. The reasons for increased usage included 'convenient because of immediate delivery' (58.0%), 'wanting to avoid crowded stores due to infectious diseases' (57.2%), and 'online prices are cheaper' (50.3%), showing that convenience factors had the greatest influence.

Interest in health has also increased. Eight out of ten people (78.1%) said they pay more attention to 'my and my family's health' compared to before COVID-19. Reflecting this, 49.3% of all respondents reported an increase in purchasing health functional foods, and 29.7% said they have increased purchases of related foods and products such as organic and pesticide-free items.

Four out of ten people (40.4%) stated that 'compared to before COVID-19, when purchasing products, they no longer decide solely based on price and quality but consider the impact of their consumption behavior on other people, society, and the environment.' 'Neutral' was 46.2%, and 'disagree' was 13.4%. Additionally, 41.3% of consumers said they have increased purchases of products that help protect the environment compared to before COVID-19, and 53.8% said they tend to use products from companies that fulfill social responsibilities.

Jung Yeonseung, president of the Korea Distribution Science Association, said, "The spread of online shopping has provided opportunities to conveniently access a variety of affordable products," but added, "On the other hand, the rapid transition to a contactless society has increased interest in society and the environment, promoting ethical consumption that values corporate social responsibility."

Use of subscription services and trade of used goods is on the rise. 31.8% had experience using subscription services in the past year, with types of subscription services used including video streaming (63.7%), music (29.2%), shopping for clothing and flowers (16.6%), and newspaper/magazine subscriptions (13.9%). Among users, 43.7% increased their usage frequency in the past year, and 84.9% plan to maintain or expand their usage levels in the future.

One in two people (49.1%) answered that they have experience purchasing through trade of used goods. Among users, 41.3% increased their transaction frequency after COVID-19, and 92.2% said they would maintain or expand their current usage levels in the future.

Regarding overall emotional state after COVID-19, 61.9% answered they feel 'somewhat depressed,' and reflecting this, 62.6% of consumers said they are willing to pay a little more for their own happiness and self-satisfaction. Also, four out of ten people (40%) reported experiencing revenge consumption in the past year, showing an outburst of suppressed consumption desires.

One in four people (23.8%) had experience using live commerce in the past year. Among users, 59.7% increased their usage frequency after COVID-19, and 85.7% expressed intentions to maintain or expand their current usage levels in the future.

Mobile gifting also soared due to COVID-19. 77.4% had experience with mobile gifting in the past year. Among them, 47.3% increased their usage frequency after COVID-19, and 91.2% said they intend to maintain or expand their usage levels.

Seo Deokho, director of the Korea Chamber of Commerce and Industry Distribution and Logistics Promotion Institute, pointed out, "In the era of a major distribution transformation combining the impact of COVID-19 spread and the 4th Industrial Revolution new technologies, the distribution industry must not neglect business innovation efforts to continuously satisfy the evolving demands of consumers."

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