Has the "Corona Boom" Ended? Delivery Declines, Movie Theaters Revisited, Mixed Fortunes Across Industries

New Lowest Number of Confirmed Cases... Demand Revives in Fashion and Cosmetics

On the 14th, when the mandatory COVID-19 test before entry was abolished, travelers were waiting for boarding procedures at Terminal 1 departure hall of Incheon International Airport as overseas travel reservations increased.
[Photo by Yonhap News]

[Asia Economy Intern Reporter Lee Gyehwa] As the number of COVID-19 confirmed cases gradually decreases, some industries that had been enjoying the so-called 'COVID-19 boom' are facing difficulties, while others are showing signs of recovery due to the resumption of economic activities.

The government views this winter as the final hurdle in responding to COVID-19. Lee Sang-min, Minister of the Ministry of the Interior and Safety and the 2nd Deputy Head of the Central Disaster and Safety Countermeasures Headquarters (CDSCH), presided over a meeting on the 21st, stating, "The scale of the COVID-19 outbreak has been steadily decreasing for four weeks since the fourth week of August," and "Today's new confirmed cases are about 41,000, the lowest in 10 weeks on a Wednesday basis." He added, "The government will do its best to overcome this final hurdle this winter based on sufficient vaccines, treatments, and stable medical response capabilities."

With the number of new confirmed cases decreasing and some suggesting the possibility of COVID-19 becoming endemic, companies are experiencing mixed fortunes. According to the Ministry of Trade, Industry and Energy's 'July Major Retailers Sales Trends,' demand for fashion and cosmetics is on the rise. Last month, department store sales increased by 31.6% compared to the same month last year. Sales of online and offline retailers rose by 9.7% year-on-year.

Cosmetics sales by online retailers increased by 14.0% compared to the same period last year. This is interpreted as a result of the transition to endemic COVID-19 and the resumption of economic activities, where remote work has shifted back to office attendance, leading to more outdoor activities and gatherings, thereby increasing demand for outing clothes and cosmetics.

The number of moviegoers is also increasing. According to a survey on Lotte Cinema usage jointly conducted by Lotte Members and Shinhan Card, the number of moviegoers in the first half of the year was 178% compared to the previous year, and the number of viewers in June recovered to 94% of January 2019, before COVID-19. The number of viewers at CGV and Megabox also recovered to 80% and 70%, respectively, compared to the same period.

The travel and airline industries are also increasing flights as demand surges. According to the Ministry of Land, Infrastructure and Transport, as of September's flight authorization, the number of international flights operating domestically is 1,926 per week. This is a recovery to 40.8% of the 4,714 weekly flights before the COVID-19 pandemic in 2019.

Compared to September last year, this is a 404.1% increase. The weekly number of international flights increased from 532 in May to 754 in June, 1,587 in July, and 1,909 in August. With the removal of the mandatory pre-entry COVID-19 test from September, overseas travel demand is increasing, and especially the drop in fuel surcharges has lowered airfares, which appears closely related to the rise in demand.

As social distancing measures are eased and dining out increases, the number of delivery app users is on the decline. [Image source=Yonhap News]

On the other hand, companies that prospered during the COVID-19 pandemic are facing difficulties. In particular, users of delivery apps on delivery platforms are continuously decreasing. According to Statistics Korea's online shopping trends, in July, the transaction amount for food services using delivery apps decreased by 194.6 billion KRW (-5.4%) from 2,587.29 trillion KRW in June to 2,567.83 trillion KRW. This is the first time since Statistics Korea began investigating the online food service market trends that the transaction amount has decreased, which is analyzed to be due to increased dining out following the lifting of social distancing measures, affecting the number of delivery orders.

As sales in the industry are divided due to COVID-19, there is an analysis that non-face-to-face companies that benefited from COVID-19 need to continuously seek future growth engines.

Professor Lee Eun-hee of the Department of Consumer Studies at Inha University said, "Consumers were inevitably isolated during the COVID-19 pandemic, but since humans are social animals, the growth rates of companies that enjoyed the non-face-to-face boom will inevitably decline after the transition to endemic," adding, "These companies should consider services that link online and offline to provide convenience and enjoyment to consumers."

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