Gift Delivery Deadlines Approach as Retailers Target Last-Minute Chuseok Demand

[Financial News] With Chuseok just around the corner, retailers are stepping up efforts to capture last-minute holiday demand. Department stores and hypermarkets are increasing inventories of products that customers can carry themselves and strengthening discounts as gift-set delivery deadlines approach. E-commerce companies are also targeting demand for gifts and groceries that continues until just before the holiday, leveraging mobile gifts and their own delivery capabilities.
According to industry sources on the 23rd, most gift-set delivery applications at Lotte Department Store have closed. Applications for delivery of products stored at room temperature ended at 4:30 p.m. the previous day, while applications for fresh-food delivery closed at 3 p.m. on the 21st. 
As gift-set delivery applications close one after another, Lotte Department Store is focusing on last-minute demand for gifts that customers can carry themselves. Demand was particularly concentrated on desserts and health products, which include a high proportion of hand-carry items. During this year's Seollal gift sales, revenue from those categories in the week immediately preceding the holiday accounted for half of total sales. In response, the company increased its supply of Chuseok 'hand-carry gifts' by approximately 20% to 30% from the previous year.
Courier applications for Lotte Mart's Chuseok gift sets have also mostly closed. Nationwide courier applications ended on the 21st, while regional applications closed the previous day. In response, Lotte Mart increased its supply of 'hand-carry apples and pears' by approximately 50% from the previous year and expanded its hand-carry seaweed supply by 20% to target demand for gifts that customers can take with them after delivery deadlines. It also strengthened discounts to capture last-minute purchases. Cheong Kwan Jang red ginseng gift sets are 25% off when purchased with an event card, while select red ginseng products, including Hansamin and CJ Hanppuri, are offered as buy-one-get-one-free deals.
E-commerce companies are targeting demand just before the holiday by promoting mobile gifts, which are not subject to delivery restrictions. 11st is running an 'E-Coupon Hot Deal' promotion through the 27th, offering mobile gift certificates and dining e-coupons at discounted prices. It is targeting demand for contactless gifts with mobile gift certificates from OLIVE YOUNG and H.Point, e-coupons from dining and café brands, and access passes for digital content.
The industry is also responding to last-minute orders as consumers increasingly delay online purchases of physical goods until just before the holiday. With in-house delivery networks and same-day and next-day delivery services expanding, more consumers are continuing to purchase gifts and groceries online until immediately before the holiday, rather than effectively ending their holiday gift shopping when courier delivery deadlines pass as they did in the past.
Coupang, which operates its own logistics centers and delivery network, is partnering with the National Hanwoo Association and the Hanwoo Checkoff Fund to hold the 'Sofrise: Korea Hanwoo Sale' through the 24th. It is offering around 30 Hanwoo products in high demand during the holiday, including sirloin and brisket, at discounts of up to roughly half price. Orders placed through Rocket Fresh are delivered by the morning after ordering. SSG.COM is also running a promotion through the 27th focused on holiday ceremonial foods, ready-to-eat meals, storage containers, and other products available through SSG Delivery.
An industry representative said, "Consumers are increasingly showing a clear tendency to use online and offline channels appropriately depending on factors such as when they make a purchase. As the industry's delivery services become more advanced, the number of consumers ordering gifts and grocery items online until just before the holiday continues to grow."
[email protected] Jang Yu-ha Reporter