SEOUL, March 25 (Korea Bizwire) – Nearly half of all Koreans are expected to reduce their consumption this year compared to last year, hinting that the retail and food service industries which suffered stagnant sales and reduced profits due to the sluggish economy last year will have to endure more hard times.
According to market research firm Macromillembrain, which conducted a survey on consumer sentiment by interviewing 1,000 adults aged between 19-59, almost half (48.5%) of the respondents replied that they would reduce their consumption this year. While 34.5 percent said that they would maintain the same level of consumption as last year, only 12.5 percent replied that they would increase their consumption.
By age group, higher age groups expressed greater reductions in consumption. For those in their 50s, 52.4 percent said they would reduce consumption, followed by 52 percent in their 40s, 44.8 percent in their 30s and 44.4 percent in their 20s.
The respondents aim to cut dining out (34.3%) the most, followed by fashion and clothes with 28.8 percent, daily life durables (23 percent), IT products including smartphones (22.2%), culture and entertainment such as films, concerts and exhibitions (20.6%), other leisure activities (19.7%), travel (18.1%), buying new vehicles (17.6%), personal care (16.3%) and cosmetics (15.6%).
A retail industry official said, “We will have to endure the chilled consumer sentiment. The industry will need to implement various promotional activities to overcome the current crisis.”
By John Choi (email@example.com)