Home appliance sales strong amid virus crisis

Although the COVID-19 crisis has dampened overall consumer sentiment, sales of home appliances remain strong, according to industry sources Sunday.

With people spending more time at home to practice social distancing, home appliance sales are booming.

The government’s subsidy program to support purchases of energy-efficient home appliances is also contributing to the sales growth.

According to Lotte Himart, 10 home appliances categorized as energy-efficient saw combined sales go up by 80 percent from March 23 to April 12 over three weeks.

The sales of air conditioners surged 200 percent during the period, while kimchi refrigerators and fridges went up by 130 percent and 125 percent, respectively, Lotte Himart said.

The Korea Energy Agency proposed a subsidy plan for 10 energy-efficient home appliances to encourage consumers to use the products -- since March 23. According to the policy, consumers can receive 10 percent of the price of a home appliance as a refund, with a 300,000 won ($245) upper cap.

The 10 home appliances include air conditioners, refrigerators, air purifiers, washing machines and televisions. The policy is due to last until the planned budget of 150 billion won is used.

The sales of appliances for small households are also on the rise.

According to Cuckoo Electronics, a leading rice cooker maker, the sales of e-rice cookers for fewer than six people rose 5 percent in February on-year.

The Cuckoo Egg Rice Cooker, rolled out in November to target single-person and two-people households and those in their 20s and 30s, witnessed sales increase by 120 percent in February on-month.

Many home appliance companies are rolling out various discount promotions.

Samsung Electronics has presented discount events for home appliances up to 1 million won, including the government subsidy of up to 300,000 won.

For instance, it offers about 700,000 won in a points system for customers of its Chef Collection Refrigerator.

LG Electronics is also offering a cash-back event. For buyers of the Whisen Air Conditioner 2in1, for instance, the company will return up to 450,000 won.

By Jo He-rim (herim@heraldcorp.com)