The distribution industry is currently in the midst of a 'flower crab war.' They are drawing consumers' attention with a '10 won difference' discount event. Since the ban on fishing was lifted on the 20th, the three major distributors, including Emart, Lotte Mart, and Homeplus, are focusing on securing flower crab supplies. With e-commerce (electronic commerce) company Coupang and various seafood startups joining the fray, the discount competition has intensified.
A source in the distribution industry noted, 'From the end of August through October, sales of autumn flower crabs account for 70% of the annual total flower crab sales. To avoid losing ground to competitors in this 'peak sales season,' distribution companies have no choice but to participate in the 10 won difference discount event.'
On the 27th, according to the distribution industry, Emart recently began selling live flower crabs for 985 won per 100 grams. Homeplus is offering the crabs online at 905 won per 100 grams. Lotte Mart is selling them for 992 won per 100 grams. Consumers are flocking to major outlets. In the case of Emart's live flower crabs, securing them is difficult unless one arrives at the opening hour.
E-commerce company Coupang has also joined the lowest price discount war, selling at the same price as Emart. A consumer, Ms. Lim, who visited the Emart Hanti Station branch, said, 'I couldn't buy flower crabs at Emart, so I purchased them from Coupang.' She added, 'I'm curious if the crabs with good meat will arrive, but I ordered because the prices are attractive.'
The distribution industry expects that by next month, the consumer prices of flower crabs at the three major hypermarkets will converge at a minimum price level. The results of last year's flower crab price competition were similar. A source in the distribution industry stated, 'As buyers are competing heavily to secure supplies, consumer prices will drop. This year, the operating environment is better than last year, and if supplies are secured similarly, prices are likely to lower accordingly.'
The intense price competition for flower crabs among hypermarkets has escalated since online distributors started challenging them. Coupang has been focusing on flower crab sales since last year, viewing them as an ideal product category to promote thanks to their cold chain and same-day delivery network. A source in the distribution industry explained, 'This reflects a management decision that it is ideal to demonstrate strengths not only in non-perishable foods like snacks and ready-to-eat meals but also in fresh produce.'
The seafood startup Mermaid's Pirate Group is also actively advertising flower crabs. They began running advertisements for seasonal flower crabs starting this week. They matched the pricing well enough not to fall behind major distributors in the flower crab war. The Mermaid's Pirate Group sells their products through Naver Store and distributes seafood in collaboration with the Noryangjin Fisheries Market.
A representative from Emart stated, 'Based on our accumulated purchasing know-how, we will continue to strive to offer consumers seasonal flower crabs at even more affordable prices.'