Retailers Face Growing Concerns Ahead of Olympics: "Worried About Unnecessary Backlash"

Lotte Department Store 'Korea Together Sale' promotional image (Photo by Lotte Department Store).

[Asia Economy Reporter Kim Yuri] The Tokyo Olympics boom, which was just a month away, has disappeared. While the distribution industry usually follows the heightened atmosphere during major sports events with marketing efforts, this year, due to concerns over COVID-19 and anti-Japanese sentiment, they are focusing on the 'Korea Together Sale' and plan to monitor public opinion and the atmosphere just before the Olympics.

◆The Vanished Olympic Boom

According to the distribution industry on the 22nd, not only offline retailers such as department stores and marts but also online retailers like e-commerce platforms are hesitant to engage in Olympic marketing. A representative from Department Store A said, "Although expectations for vaccines are spreading, concerns about COVID-19 variants like Delta remain, and negative views about the Olympics being forced ahead persist, so it is indeed burdensome to engage in related marketing," adding, "We are still reviewing things conservatively."

The fact that the 'Japanese product boycott' has continued for two years also makes the distribution sector cautious. A representative from Mart B said, "Marketing for food and alcoholic beverages to enjoy while cheering could be possible, but since the boycott movement against Japanese products continues, marketing for Japanese food and alcoholic beverages seems difficult."

◆For Now, Focus on the Together Sale

The industry plans to focus on the 'Korea Together Sale' and the 'Summer Regular Sale' starting on the 24th and observe the trends. Major department stores such as Lotte Department Store, Shinsegae Department Store, Hyundai Department Store, and outlets will launch regular sales from the 24th, offering products at discounts of up to 50-60%. Online and offline distribution channels like GS Retail and SSG.com will also offer discounts mainly on daily necessities. An industry official said, "We will focus on the Korea Together Sale, which has a good purpose of overcoming the COVID-19 crisis and revitalizing the domestic economy, and then monitor the situation afterwards."

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