Do the Olympic Games drive sales of consumer goods? Yes! The Olympic Games have a unique ability to drive consumer behavior, and during the 2016 Rio Olympics, sales of processed foods, health tonics, and other related products in South Korea surged dramatically.
The Olympic Impact on Sales: A Look Back at Rio 2016
During the 2016 Rio Olympics, the 12-hour time difference between South Korea and Brazil led to many events being broadcast late at night or early in the morning. This unusual timing had a significant impact on consumer purchasing habits:
1. Processed Foods and Snacks: Sales of instant noodles saw a 120% increase in the first week of August 2016 compared to the previous year. Dumplings, pizza, and the popular Korean snack tteokbokki also saw sales rise by 36%. Confectionery and munchies sales increased by 60%, while instant rice and soups grew by 55%.
2. Health Tonics: Gmarket reported a 73% rise in health tonic sales as consumers sought to combat fatigue from late-night viewing.
3. Home Entertainment Systems: The demand for home theater systems and projectors soared, with sales increasing by 133% and 156%, respectively. Sales of 3-D glasses rose by 23%.
4. Convenience Stores: Leading convenience store chain CU noted a substantial increase in late-night sales, with cold-storage convenience foods and instant noodles sales jumping by 45.3% and 19.8%, respectively. Coffee drinks also saw a 31.1% increase.
Paris 2024: Anticipated Trends and Consumer Behavior
As the Paris 2024 Olympics approach, South Korean retailers are preparing for another significant boost in sales, capitalizing on the seven-hour time difference that will see major events broadcast at dawn in Korea. The focus will be on products that cater to consumers watching games at home.
1. Retail Discounts on Sports Gear and Cosmetics:
- Lotte Department Store is offering up to 60% discounts on popular sports brand clothing, sunglasses, and sunscreen products.
- Hyundai Department Store is holding special exhibitions for sports clothing brands with discounts of up to 30%.
2. Supermarket Promotions:
- E-Mart is conducting a beer and snack discount event, offering deals on premium imported beers and popular late-night snacks.
- Special promotions include discounted prices on chicken, hot dogs, and seafood dishes, ideal for home viewers.
3. Electronics and Home Entertainment:
- Lotte Hi-Mart is providing gift certificates worth up to 820,000 won with the purchase of TV event products.
4. Convenience Store Deals:
- GS25 is offering discounts on chicken and beer, staples for sports viewing.
- CU and 7-Eleven have launched various meal sets and large-capacity PET bottle beer promotions.
Key Takeaways
1. Late-Night Consumption: The time difference during the Olympics leads to increased sales of convenient, ready-to-eat foods and beverages.
2. Home Entertainment: Consumers invest in home entertainment systems to enhance their viewing experience.
3. Targeted Promotions: Retailers capitalize on the Olympic craze with targeted promotions and discounts on relevant products, driving significant increases in sales.
4. Health and Wellness Products: There is a noticeable surge in the purchase of health tonics and other wellness products as consumers seek to stay alert and energized during late-night events.
The Olympic Games provide a unique opportunity for retailers to boost sales through strategic promotions and by catering to the viewing habits of sports fans. As seen in 2016 and anticipated for 2024, the Olympics are not just a celebration of sports but also a significant driver of consumer behavior and retail sales.
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