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Tag: Korea Sale FESTA

  • Korea Sale Festa kicked off last week

    Korea Sale Festa kicked off last week

    The Korea Sale Festa beginning Sept. 28 will fail to fulfill its aim of boosting consumption and helping small- and medium-sized enterprises (SMEs), as a growing number of retailers and consumers have turned away from the government-initiated discount event.

    Since 2016, the government has hosted the Korean version of Black Friday to stimulate domestic consumption.

    However, consumers have pointed out low discount rates and the poor quality of products sold during the event.

    Retailers have also complained about the ineffectiveness of the event. “Department stores and discount chains regularly hold discount events, so their sales do not grow significantly during the Korea Sale Festa,” a retail industry official said.

    Amid the growing criticism, the government even cut the budget for the event and its duration.

    According to Rep. Yoon Han-hong of the main opposition Liberty Korea Party, the Ministry of Trade, Industry and Energy will spend 3.45 billion won (US$3 million) on the Korea Sale Festa this year, down from 5.1 billion won last year.

    In particular, the budget for traditional markets and SMEs decreased to 1.3 billion won from 2.77 billion won, while that for the promotion of the event is 2.15 billion won, down from 2.32 billion won.

    Most of the 2.15 billion won has been used to cast SHINee’s Choi Min-ho as spokes-model for the Korea Sale Festa, and entertainers who will perform on the eve of the event. They include Red Velvet, EXO, NCT 127 and several other singers and comedians.

    The length of the Korea Sale Festa has also been shortened to 10 days this year from 34 days last year.

    Given that the event will be held after the peak shopping season of the Chuseok holidays, SMEs and vendors at traditional markets will face difficulties in boosting sales.

    Against this backdrop, the number of companies participating decreased to 231 this year from 446 last year, as a growing number of retailers, hotels and restaurants declined to offer discounts.

    “Despite the recent slump in domestic consumption, the trade ministry does not pay any attention to the Korea Sale Festa, as it focuses only on the shutting down of nuclear power plants,” Yoon said. “The government should come up with measures to boost consumption and support SMEs.”

    The ministry decided to spend 2 billion won on the Korea Sale Festa next year, down 1.45 billion won from this year. Some observers expect the Moon Jae-in administration will move to abolish the event initiated by the previous Park Geun-hye administration.

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  • Korea to launch virtual reality shopping mall

    Korea to launch virtual reality shopping mall

    A virtual reality shopping mall is set to be launched in Korea, backed by the government.

    The Ministry of Trade, Industry & Energy says it will be rolling out the mall during this year’s Korea Sale Festa – Korean Black Friday – in October.

    The ministry hopes that consumers will be able to use to shop and place orders and have the goods delivered to their doorstep.

    This video gives an idea of what shoppers can expect when the design is complete.

    According to the ministry, although the global retail industry recognises VR or AR shopping as the industry’s future, key players such as eBay and Alibaba are still in the testing phase.

    Korean VR technology 2

    The ministry is inviting retailers to join its initiative starting this week to establish virtual outlets on the upcoming platform. The deadline for applications is April 10.

    “We’re hoping for our project to provide new business opportunities and create a whole new market,” a ministry official said.

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  • Korean online shopping reaches new high

    Korean online shopping reaches new high

    South Korean online shopping reached a new record high in October, aided by a nationwide discount event, according to government sources.

    Total online transactions reached a record 5.6 trillion won (US$4.8 billion) in October, up 17.3 per cent from 4.8 trillion won a year earlier, according to the report compiled by Statistics Korea.

    Purchases made through smartphones, tablets and other mobile gadgets also soared 37.4 per cent on-year to a record 3.2 trillion won to account for 56.1 per cent of all online sales in the month, up from the 54.7 per cent share the previous month.

    In October, the Korea Sale Festa, designed to tie up the retail industry with the tourism and cultural sectors in line with the major Chinese holiday season, encouraged people to go shopping online and offline.

    During the one-month period, some 200 retailers and internet markets offered discounts and promotions to attract local and foreign shoppers.

    Demand for clothes jumped 29.5 per cent on-year to 726.8 billion won and online sales of cosmetics surged 42.1 per cent to 465.1 billion won, while online food delivery vaulted 24.8 per cent to 521.4 billion won.

    According to separate data, the combined sales of department stores, large outlets and internet shops increased 8.4 per cent on-year in October, with those of offline stores gaining 6.3 per cent and those of online retailers jumping 13.2 per cent.

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  • South Korea to Launch Nationwide Shopping Festival in Fall

    South Korea to Launch Nationwide Shopping Festival in Fall

    South Korea will hold a nationwide shopping festival involving major retailers, manufacturers and traditional markets in the fall to draw foreign travelers and jack up lackluster domestic consumption, the government said Tuesday. 

    The Ministry of Trade, Industry and Energy and the Ministry of Culture, Sports and Tourism jointly formed a task force to create the massive shopping campaign, called “Korea Sale FESTA,” scheduled from Sept. 29 to Oct. 31. 

    “The government consulted with major manufacturers in consumer electronics, clothing, cosmetics and food industries, and they were positive about offering discounts on various items,” the ministries said in a release. “As Korea Sale FESTA is prepared well in advance, more manufacturers are expected to participate in this year’s event.” 

    The ministries separately held discount events last year as part of efforts to prop up the national economy hit hard by the Middle East Respiratory Syndrome outbreak last May.

    The culture ministry initiated a shopping festival called “Korea Grand Sale” from early September to mid-October during which retailers knocked down prices to woo back both domestic consumers and Chinese travelers during the long-haul national holiday. 

    Less than a month later, the trade ministry held another nationwide shopping campaign, called “Korea’s Black Friday,” during the first two weeks of October, to stimulate stagnant domestic consumption. 

    As last year’s discount campaign was criticized for hasty preparations and limited participation by retailers, the government formed a joint task force with industry officials this year to negotiate with retailers and manufacturers and offer shoppers better deals. 

    The culture ministry plans to provide support by hosting cultural and entertainment events with K-pop stars to attract foreign travelers, while the trade ministry will push for trade fairs and exhibitions to create a synergy effect. 

    The government will start promotion at home and abroad starting from late July and work with provincial governments and related organizations to link with local festivals during the period. 

    “We will combine shopping, tourism and culture to promote Korean culture and create a festive mood to bring in domestic and international consumers,” the ministries said.

     

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