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[119] 2014.09.04
Prices for Chuseok (harvest festival)gift sets: those sold by department stores are the most expensive, followed by large supermarkets and online shopping sites

 

#701 Seoul YWCA 20, Myeong-dong 11-gil, Jung-gu, Seoul, Korea
TEL.: 82-2-774-4050/FAX: 82-2-774-4090
 
Press Release
 
Date
: Sept. 4, 2014
Dept. in Charge
: Cost Analysis Team
Tel.
: 82-2-774-4060
 
Prices for Chuseok (harvest festival)gift sets: those sold by department stores are the most expensive, followed by large supermarkets and online shopping sites
-Gift sets containing processed food are 23% more expensive than the total cost for the same individual items included in the gift set
-Consumers should choose items after checking price details
 
Consumers’ complaints about the unreasonably high prices of holiday gift sets have been a holiday ritual. The Price Monitoring Center of KNCCO (President: Lee Deok-seung) would like to point out the issues pertaining to holiday gift sets and provide consumers with useful information based on a comparison of prices per  businesses and price per items.
 
[Survey of prices for Chuseok gift sets]
* Survey period: August 25 (in department stores and large supermarkets); August 26 and 27 (in online shopping sites)
* Businesses surveyed: Department stores: Lotte (main branch), Shinsegye (main branch), Hyundai (Sinchon branch); large supermarkets (E-Mart, HomePlus, Lotte Mart); online shopping sites (G Market, Auction; 11st)
* Survey methods: On-site survey (at department stores and large supermarket); lowest online prices (at online shopping sites)
* Items surveyed: Household goods (LG Household & Health Care/AmorePacific/Aekyung), processed food (CJ Cheiljedang/Dongwon F&B/Daesang/Ottogi)
Household goods
LG Household & Health Care (4)
LG No.2; LG No.3; LG No. 4; LIEN No. 1
AmorePacific (4)
Danjang Nos. 1, 3, 4 and 6
Aekyung  (3)
Haengbok Nos. 1, 2 and 3
Processed food
CJ Cheiljedang (5)
SPAM Nos. 1, 3, Luxury-7, Salmon-1, Special-1
Dongwon F&B(3)
Richam No.6; Mix Nos. 10 and 20
Daesang (3)
Uri Palm No. 3, 5, and 2
Ottogi (2)
Special Nos. 16 and 18
* Based on actual prices.
 
1. Prices for processed food gift sets: those sold by department stores are the most expensive, followed by large supermarkets and online shopping sites
- In some cases, prices for household goods gift sets sold by department stores or large supermarkets are more than 80% higher than those sold by online shopping sites
 
After having checked the prices for 24 types of Chuseok gift sets, it appears that those sold by department stores are the most expensive, followed by those sold by large supermarkets, and lastly, those sold by online shopping sites. As for household goods gift sets, the prices offered by department stores and large supermarkets were 61% higher than those offered by online shopping sites. Even in the case of processed food, prices offered by department stores and large supermarkets were 30% and 27% higher, respectively, than those offered by online shopping sites.
 
The items that displayed the largest price difference were gift sets containing shampoo, hair conditioner, toothpaste, and soap (i.e., Aekyung Haengbok No.1 sold for 5,333 won at online shopping sites vs. 9,900 won at department stores and large supermarkets; LG Household & Health Care Lien No.1 containing shampoo and hair treatment sold for 16,567 won at online shopping sites vs. 29,900 won at department stores and large supermarkets.
 
Department stores and large supermarkets offered similar prices for household gift sets, but their prices were more than 80% higher than those offered by online shopping sites in some cases.
 
2. Some processed food gift sets appear to be exorbitantly expensive
- Prices for 12 gift sets are 12% higher than the total cost for the same individual items included in the gift set
 
As a result of comparing the prices for 12 gift sets and the total costs for the individual items contained in the gift sets, we found that the gift sets cost 4,140 won (i.e., 12%) more than the individual items on average. For example, CJ Cheiljedang SPAM Salmon No.1 Set, which contains eight SPAM Classic cans (200g) and five Alaska Salmon cans (100g), was 49,800 won vs. 40,500 for the total cost of the same items when purchased individually.[1] Also, approximately half of the items covered by the survey had a price difference of more than 4,000 won between the gift sets and the total cost of the individual items contained in the gift sets. This means that even if the packing cost is considered, the gift sets are exorbitantly expensive.
 
Many household goods gift sets contain the products which are not sold in ordinary markets and packaged differently from those can be found in ordinary markets, making it difficult to compare prices between gift sets and individually sold items. Consumers should remember when purchasing gift sets that usually the prices set for these sets are higher than for the exact same individually sold products.
 
Table 1. Comparison between gift set prices and the total cost of individual items
 
Brand name
Product name
Gift set prices (A)
(unit price: won)
Total prices of individual items (B)
Price difference
(A-B)
Percentage
(A/B×100)
CJ Cheiljedang
SPAM Salmon No.1
49,800
40,500
9,300 won
122.96%
Dongwon F&B
Richam No.6
34,800
32,040
2,760 won
108.61%
Daesang
Palm Oil Luxury No.2
34,800
32,360
2,440 won
107.54%
Ottogi
Special No. 18
36,800
30,140
6,660 won
122.10%
Average (12 gift goods)
-
-
4,140 won
111.80%
Note: 1) Gift set sales prices: based on the average prices offered by three large supermarkets
2) The total cost of individual items is based on the highest prices offered by the online shopping sites for three large supermarkets
 
Consumers need to check what a gift set is composed of and compare prices before making a purchasing decision
 
Contrary to what consumers expect, the prices of gift sets are higher than the total cost of the individual items contained in a set, which is not justified even if the cost of packaging is considered. Businesses should set prices for gift sets in a reasonable and transparent way to win trust from consumers. It is recommended that consumers should check what the gift set is composed of and meticulously compare prices before making a purchasing decision.
 
※ Attachment: prices for Chuseok gift sets offered by different distribution channels
 
-----------------------------Partners of Korea National Council of Consumer Organizations------------------------------
National YMCA of Korea, Green Consumers Network in Korea, Korea Federation of Housewives Clubs, National Council of Homemakers Classes, Korea Consumer Education Center, National Council of YMCAs of Korea, Consumers Union of Korea, Consumer Affairs Institute, Citizens Alliance for Consumer Protection of Korea
 
 
(Unit: Won)
Manufacturer
Gift goods
Prices
Total prices of individual items
Department stores
Large-sized marts
Open markets
Household goods
LG Household & Health Care
LG No. 2
13,900
13,900
9,433
-
LG No. 3
15,900
15,900
9,433
-
LG No. 4
19,900
19,900
14,400
-
Lien No.1
29,900
29,900
16,567
-
AmorePacific
Danjang No.1
9,900
9,900
6,120
-
Danjang No.3
15,900
15,900
9,500
-
Danjang No.4
19,900
19,900
13,533
-
Danjang No.6
29,900
29,900
17,167
-
Aekyung
Haeongbok No.1
9,900
9,900
5,333
-
Haeongbok No.2
13,900
13,900
9,467
-
Haeongbok No.3
15,900
15,900
10,400
-
Processed food
CJ Cheiljedang
SPAM No.1
71,500
69,800
60,167
63,920
SPAM No.3
57,967
57,800
49,367
53,320
SPAM Luxury No.7
21,500
20,800
16,333
17,780
SPAM Salmon No.1
51,000
49,800
43,133
40,500
Special No. 1
49,000
44,800
34,800
38,850
Dongwon F&B
RICHAM No. 6
-
34,800
22,033
32,040
Mixed No. 10
57,000
58,800
54,360
55,910
Mixed No. 20
-
62,800
58,733
62,260
Daesang
Chungjungone Uri Palm No. 3
47,200
45,800
34,417
-
Chungjungone Uri Palm No.5
34,800
33,800
26,707
32,700
Chungjungone Palm Luxury No. 2
35,900
34,800
24,657
32,360
Ottogi
Special No. 16
29,400
26,800
19,100
22,140
Special No. 18
38,300
36,800
28,323
30,140
Average
Higher than online shopping sites by
145.65%
142.46%
100.00%
-
Higher than the total cost of individual items by
117.27%
111.80%
89.42%
100.00%
Note: The total cost of individual items is based on the highest prices offered by the online shopping sites for three large supermarkets.

[1] Alaska Salmon is sold only in package(6 tins). Thus, the unit price was estimated.


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