E-Mart reported a consistent growth of 10 to 20 percent in sales of value-consumption gift sets, such as low-carbon, organic, and pesticide-free products, during each holiday season since 2021 when value consumption gained prominence. (Image courtesy of E-Mart)
SEOUL, Sept. 7 (Korea Bizwire) —A recent survey has revealed that a majority of South Korean consumers are recognizing the need for a shift in holiday gifting practices. Often, holiday gifts are deemed excessively priced and overpackaged.
With the Chuseok holiday season approaching, it’s worth noting that meat is the most coveted food gift across all age groups. In contrast, fish and seafood are at the bottom of the preference list due to concerns stemming from recent radioactive water discharges in Japan.
In a survey conducted last month in preparation for Chuseok by Embrain and Shinsegae Foods, involving 1,000 men and women aged 20-49 from across the nation, 62.2 percent of respondents expressed the belief that holiday gifts should undergo a transformation.
The top two reasons cited for this desire were “More affordable gifts” (28.1 percent) and “Simpler packaging” (24.8 percent). The factors contributing to this sentiment included the inflated prices of gift sets, wasteful over-packaging, and environmental concerns.
With the emergence of the environmentally-conscious “value consumption” trend, the food and retail industries have been racing to introduce eco-friendly gift sets. However, they have faced criticism for their high prices.
For instance, major department stores have released eco-friendly and value-consumption gift sets for Chuseok this year priced around 500,000 won.
On the flip side, as more consumers seek products that align with their values alongside price and quality considerations, the retail and food sectors are increasingly offering products that cater to this demand.
This trend has led to an uptick in sales of eco-friendly, low-carbon, and other value-oriented products in holiday gift sets.
According to the Korea Agriculture, Fisheries and Food Administration (aT), the prices of fruits, such as apples and pears, which are in high demand during Chuseok, have increased compared to the previous year. In contrast, the prices of vegetables, including Chinese cabbage and radishes, have remained relatively stable and low. (Image courtesy of Yonhap)
E-Mart reported a consistent growth of 10 to 20 percent in sales of value-consumption gift sets, such as low-carbon, organic, and pesticide-free products, during each holiday season since 2021 when value consumption gained prominence.
Specifically, E-Mart’s organic holiday sets saw a 22 percent YoY growth during Chuseok in 2021 and a 16 percent increase during Chuseok last year. This year, the low-carbon certified apple and pear set, a flagship value consumption item, ranked among the top five fruit sets based on pre-booked holiday gift sales.
Considering factors beyond the basics, such as price, quality, and design, has become commonplace when purchasing goods. An 83.5 percent majority of respondents in a survey conducted by Lotte Membership Research Platform Lime last year among 1,500 individuals in their 20s to 60s indicated their participation in value consumption activities.
Furthermore, an additional survey by Korea Consumer Resources in June, involving 1,000 men and women aged 20 to 60, revealed that 86.4 percent of respondents were willing to buy eco-friendly products, even if they cost more than regular alternatives.
Additionally, emphasizing eco-friendliness can enhance a company’s brand image, making gift sets that offer value for money the focal point for supermarkets, department stores, and the food industry in anticipation of the Chuseok holiday.
Meanwhile, meat (38 percent) reigns supreme as the most favored food gift among all age groups leading up to Chuseok, Korea’s largest holiday. Processed meat (16.5 percent), health foods (15.2 percent), fruits (14.5 percent), oils and spices (6.2 percent), and baked goods (5.6 percent) follow in preference, with fish and seafood lagging behind at 4 percent.
When it comes to generational preferences for food gifts, there’s a noticeable split. Those in their 20s gravitate towards meat, particularly processed meats like canned goods and sausages.
In contrast, 30-somethings prefer fruits, while those in their 40s opt for healthy foods. These distinctions can be attributed to the differing lifestyles and priorities of each generation when making food choices.
Sales of beef gift sets have experienced a significant boost as hypermarkets and department stores began preselling Chuseok gift sets last month. Traditionally seen as costly presents, the market price of beef has become more stable this year due to an increased supply of slaughtered cattle, consequently driving up demand for these sets. (Image courtesy of Shinsegae Department Store)
Lina Jang (linajang@koreabizwire.com)
