Survey: Korean consumer sentiment during the coronavirus crisis

| Survey
With inflationary headwinds, pessimistic view on economy is rebounded and makes Korean consumers conservative on spending, especially on discretionary categories.

With the increasing concern on inflation, pessimism has risen again since March 2022, especially among low income group. While footfalls are coming back as consumers are gradually getting back to normalcy, the intent to splurge, especially on discretionary categories is slightly in decline due to perceived financial severity.

These exhibits are based on survey data collected in Korea on August 24–30, 2022. Check back for regular updates on Korean consumer sentiments, behaviors, income, spending, and expectations.

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Most Koreans have mixed views about an early economic recovery in their country
Pessimism among Korean consumers has rebounded
Sentiment across income groups has polarized since last cycle; lower-income groups are less optimistic and more pessimistic
Older and unvaccinated consumers are generally more pessimistic
An increasing portion of consumers believe that their income, spending, and savings are stable
Intent to splurge has decreased among consumers, but younger, mid- to high-income generations show stronger intent
Desire to splurge on travel and dining has slowed down; desire to splurge increased for personal wellness
Consumers report negative net intent to spend in most categories, excluding a few essentials and wellness categories
Price increases are affecting Korean consumers’ shopping decisions, such as purchasing a smaller volume or trading down
Spending net intent has stabilized across categories
About one-third of consumers say they are engaging in 'normal' out-of-home activities--but in Gen Z, less than 20 percent
Consumers have modified their engagement in out-of-home activities across categories
Roughly 70 percent of consumers adjusted or engaged less in out-of-home activity when BA variant broke out
Relevance of social media and omnichannel continues in purchase behavior
Omnichannel and online are prevalent across most categories while in-store is still dominant in some categories
SNS influences consumers across categories with Gen Z being influenced in most categories
Most consumers engage in social media at least once a week with YouTube being the most prevalent
Most consumers engage entertainment platform at least once a week with Netflix being the most prevalent
There were shifts in consumer loyalty and behavior and consumers intend to maintain the changes even after COVID-19 crisis subsides
Intent to use digital services after the COVID-19 crisis subsides remains high
Consumers continued their digital shopping behaviors and at-home activities as often or more frequently in the last three months
Shifts toward digital service have scaled across categories, spearheaded by delivery and online streaming
Brand switching continues with value as top 1 reason among APAC countries
Emergence of new shopping behavior slowed, with lower adaptation among older generations and low-income group
More than four in ten consumers faced a stockout in the past three months
Few consumers waited for restock, instead opting for a different retailer or different brand
Value is the top reason for switching brands, followed by demand for better quality or organic features
Value is the top reason for switching retailers, followed by demand for better quality or organic features
Most consumers have observed price increases, with more than half reporting price rises for groceries and gasoline
Consumers are most likely to respond to a price increase by switching brands, buying smaller quantities, or delaying purchases
Among those who switched brands, 60 percent chose a private label; for those who switched retailers, price was the key driver
Inflation and energy shortages are top concerns as a result of the war in Ukraine, especially among elder groups
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Global surveys of consumer sentiment during the coronavirus crisis

Global surveys of consumer sentiment during the coronavirus crisis

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