"Almost New... Only Buy If Cost-Effective" Sales Surge for 'Under 10,000 Won, Refurbished, e-Coupons'

Cold Wind Blows Through Distribution Industry Amid Spread of Recession-Type Consumption

Recession-driven consumption is spreading in the domestic e-commerce market. Recently, demand for products under 10,000 won, refurbished products, and e-coupons has surged.

Photo by 11st website

According to the distribution industry on the 10th, 11st’s ‘9,900 Won Shop,’ which opened on September 20, saw its average daily sales in November increase by 196% compared to October. The average daily sales in October also rose by 1.8% compared to September. Considering that the average sales growth rate in the online distribution market from July to October was 10.2%, this is an overwhelming growth trend.

Tmon’s ‘Happiness for 10,000 Won’ special section also recorded a 98% increase in sales last month compared to the same period last year. The ‘Happiness for 10,000 Won’ section gathers products priced at 2,500 won, 5,000 won, 7,000 won, and 10,000 won.

Because They Are Almost Like New... Refurbished Products Gain Popularity

The popularity of ‘refurbished’ products (exhibition items or returned products due to minor defects) is rising again. ‘Refurbished’ is a shortened form of ‘refurbish,’ meaning ‘to renew.’ It refers to products returned due to simple buyer’s remorse, products repackaged due to issues during manufacturing or distribution, or exhibition items. These are not used secondhand products and have the advantage of being cheaper than new products.

According to Tmon, its self-operated ‘Refurbishment Imminent Market’ saw sales increase by 80% from January to November compared to last year. The number of purchases and customers grew by 66% and 63%, respectively. A company representative explained, “Visits remain steady because customers can purchase high-priced items such as smart TVs and mobile phones at affordable prices,” adding, “Ready-to-eat meals nearing their expiration dates are also among the top purchases.”

Wemakeprice also announced that sales of refurbished home appliances surged by 273% in the second half of this year compared to last year. Consumers, who used to be meticulous about fresh food, have started to consider cost-effectiveness, and sales of fallen fruit products skyrocketed by 366% during the same period.

E-coupons, which allow consumers to purchase products at prices lower than the list price, have also soared amid recession-driven consumption. According to Statistics Korea, online shopping transaction volume in October reached 20.09 trillion won, marking the highest monthly figure ever. This is the first time since 2001 that the 20 trillion won mark has been surpassed.

Employment Freeze Hits Distribution Industry Amid Recession

The current situation, where consumption is shifting toward recession-driven spending, is making things more difficult for distribution companies. A severe employment freeze has swept across the distribution industry. As consumers tighten their wallets due to the economic downturn, distribution companies experiencing poor performance have started to reduce their workforce. This is seen as a desperate measure to improve financial structure by cutting labor costs.

Lotte Mart is conducting its third voluntary retirement program since its founding. 11st has also been accepting voluntary retirement applications since last month. Among distribution companies, its eligibility criteria are the lowest. It is analyzed that accumulated fatigue from continuous deficits has led to restructuring. 11st alone recorded an operating loss of 150 billion won last year.

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