24% of consumers experience “revenge consumption”, and Korean consumers’ demand surges

The economic upturn felt by residents of Seoul, South Korea , stagnated in the first quarter of this year, according to a survey .

In addition , the survey found that a quarter of citizens experienced so-called "revenge consumption , " which refers to a one-time outburst of consumption after being suppressed due to external factors.

On the 7th, the Seoul Institute released Policy Report No. 321, announcing the results of the survey on "Consumer Confidence and Revenge Consumption in Seoul in the First Quarter" , with a sample of 1,200 citizens.

The "Consumer Attitude Index" reflecting consumer sentiment reached its lowest point (82.8) in the first quarter of last year and has risen for three consecutive quarters: 86.1→87.9→89.4, but it fell by 0.4 points from the previous quarter to 89.0 in the first quarter of this year.

The "current living conditions index , " which is a component of the consumer attitude index in the first quarter of this year , fell 2.9 points from the previous quarter to 72.9 , while the "future living conditions index" rose 2.1 points from the previous quarter to 96.0.

The " Durable Materials Purchasing Attitude Index " was 77.6 , down 3.6 percentage points, and the "Housing Purchase Attitude Index" was 53.6 , down 2.0 percentage points . The residential purchasing attitude index has declined for three consecutive quarters.

Regarding the revenge consumption caused by the new coronavirus infection, 24.3% (291 people) of the respondents answered that they had "experience".

In the initial period of revenge consumption, the highest proportion of respondents chose the fourth quarter of last year, followed by the revenge consumption sector, followed by "food (healthy food, food and beverages)" (44.0%), "electronic products" (20.3%), and "branded clothing and groceries" (13.1%), etc.

Among those who experienced revenge consumption, 36.4% answered that the biggest reason was "the psychological compensation for a depressed mind", followed by "the shopping needs postponed due to restraint in going out" (18.6%) and "substitute consumption to consume domestic and foreign travel expenses" (18.2%).

In addition, among those who have not experienced this situation, 10.1% answered that they "have the intention to engage in revenge consumption" in the future.

As for the areas planned for revenge consumption, "domestic and international travel" was the largest, accounting for 28.3%, followed by "electronic products" (17.4%) and "food" (16.3%).

South Korea

Revenge consumption

consumer