Grim outlook for Korea retail

Nearly half of all Koreans are expected to reduce their consumption this year compared to last year.

The finds of a new survey suggest 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 in 2015.

According to market research firm Macromillembrain, which conducted a survey on consumer sentiment by interviewing 1000 adults aged between 19-59, almost half (48.5 per cent) of the respondents replied that they would reduce their consumption this year. While 34.5 per cent said that they would maintain the same level of consumption as last year, only 12.5 per cent 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 per cent said they would reduce consumption, followed by 52 per cent in their 40s, 44.8 per cent in their 30s and 44.4 per cent in their 20s.

The respondents aim to cut dining out (34.3 per cent) the most, followed by fashion and clothes with 28.8 per cent, daily life durables (23 per cent), IT products including smartphones (22.2 per cent), culture and entertainment such as films, concerts and exhibitions (20.6 per cent), other leisure activities (19.7 per cent), travel (18.1 per cent), buying new vehicles (17.6 per cent), personal care (16.3 per cent) and cosmetics (15.6 per cent).

Observed a retail industry official: “We will have to endure the chilled consumer sentiment. The industry will need to implement various promotional activities to overcome the current crisis.”

(Original reporting by John Choi).

 

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