As domestic demand deepens and consumption declines across the board, food and distribution companies are vying for consumer wallets through frugal marketing.
According to the distribution industry on the 12th, SPC Samlip's 'Lunch Bread,' which recently began sales, surpassed 500,000 units sold within two weeks of its launch. This figure is more than double the average sales of existing baked goods during the same period. SPC Samlip sees the price of 1,900 won as a major factor in attracting consumer choice. Although the Lunch Bread is inexpensive, it is designed to be a large size. The initial goal was to develop a product that could replace a full lunch with just one piece of bread.
Supermarkets and convenience stores are also actively engaging in frugal marketing. Emart recently sold domestic pork belly and neck at 966 won per 100 grams (when paid with a promotional card), while imported pork belly and neck were sold at 779 won per 100 grams. Homeplus sold Canadian 'Boreumgwi' (pigs raised on barley) at 790 won per 100 grams, and 'Handon Pomegwi' (pigs raised on grapes) at 990 won per 100 grams. Lotte Mart also began selling Canadian and American pork belly and neck at 890 won per 100 grams.
A distribution industry official noted, "The field is working hard to reduce consumer prices by even one won, and here, through discounts from card companies, prices are lowered by another 10 to 20 won to target frugal consumers."
Convenience stores are launching ultra-low-priced products under their own brands (PB). In the past, large supermarkets were focused on acquiring contract volumes in bulk and reducing marketing expenses to create PB products, but now convenience stores have set up a structure where they can also compete with PB products. According to the Ministry of Trade, Industry and Energy, from January to November last year, convenience store sales accounted for 17.4% of the distribution industry, surpassing department stores at 16.6%. The growth exceeding department store sales indicates that convenience stores have sufficient buying power to offer competitive PB products.
Since last year, CU convenience stores have been selling cup ramen at 880 won and snacks at 990 won. Strawberry and chocolate milk also cost 990 won. Among these, the sales of cup ramen have reached 1.1 million units in the past year. A CU official said, "We have succeeded in reducing production costs by maximizing operational efficiency, including increasing the operating rate."
GS25 is also joining frugal marketing with its own brand (PB) 'Real Price.' While food manufacturers are steadily raising consumer prices, Real Price has reduced the price of chicken breast (100g) from 2,300 won to 1,800 won, a decrease of 500 won (22%). Additionally, in January, two types of refrigerated noodles, Wando seaweed udon and anchovy kalguksu, were launched at around 1,000 won. GS25 plans to expand the Real Price product line to over 100 types by the end of this year.
Emart24 has introduced a low-cost food PB project titled 'The End of Imagination.' Notable items include '900 Triangular Gimbap,' '1,900 Gimbap,' '2,900 Jajangmyeon,' and '3,600 Bibimbap.' Among these, 1,900 Gimbap sold over 400,000 units in the shortest time.
The reason food and distribution companies are engaging in frugal marketing is based on the judgment that consumption is declining across the board. According to the Credit Finance Association, the 'January 2025 card approval results' show that sales have decreased compared to the previous year, regardless of the industry. This includes the educational services sector, which has rarely seen a decline, showing a 5.5% decrease compared to January of last year. Sales in the educational services sector include kindergartens and private institutes. Typically, January is a vacation period, meaning spending on private institutes tends to increase.
A distribution industry official stated, "This is a phenomenon resulting from the ongoing polarization of consumption," adding, "While food prices continue to rise due to exchange rate and cost issues, on the other hand, more products are expected to emerge that undercut costs and leverage price competitiveness as an advantage."