As snacks like butter tteok follow the Dubai jjondeuk cookie in quick succession, the confectionery industry is facing a dilemma. In a structure where trends are created and disappear ever faster around social media (SNS), confectionery companies equipped for mass production find it structurally difficult to respond in real time.
According to the industry on the 16th, confectionery companies recently have been gauging consumer response through limited editions rather than blindly chasing fast trends. Because they must factor in plant equipment, materials and supplies procurement, and logistics under a mass production structure, immediate product launches tailored to rapidly changing fads are becoming harder. Some also noted that from development to production, new products take significant time and expense, and if launched after a trend has passed, the risk can be even greater. Rising inventory and operating expenses are also cited as burdens.
In fact, some consumers say that when a confectionery company releases a trend-reflective product such as the Dubai jjondeuk cookie, the perception arises that the fad is already over. The mismatch between an extremely fast trend cycle and the manufacturing production structure is increasing uncertainty over the success of new products.
A confectionery industry official said, "From a manufacturer's standpoint, because we do mass production, it is difficult to produce impulsively in line with trends. Unless there is idle equipment, launching a new flavor requires running a separate line," and added, "Once we move to mass production, coordination with sales channels is also necessary, so by the time a new product reaches consumers, the trend is often already over."
Accordingly, the confectionery industry is using a strategy of testing market reaction through limited-edition products. Orion, Lotte Wellfood, and Haitai Confectionery & Foods release limited editions that apply new flavors or concepts to existing brands, then decide whether to convert them into regular products based on the response. For example, Orion recently launched "Moist Yellow Cheese Chips" as a limited edition for the spring season. After its Feb. launch, it trended on SNS, leading to deepening shortages and even higher resale prices, prompting Orion to decide recently on a small additional production run.
Typically, manufacturers secure materials and supplies inventory sufficient for more than three months. Because limited editions only require securing the planned quantity, they can reduce risk from rapid shifts in trends.
However, even limited editions carry no small burden in development and production. As a result, the industry is choosing to add trend elements to a proven "long-running brand"–centered strategy. They are expanding low-sugar, zero-calorie, and premium lineups of long-running brands. Lotte Wellfood's "Moncher," "Pig Bar," Haitai Confectionery & Foods' "Home Run Ball," and Binggrae's "Melona" are being updated with flavor variations or premium elements to minimize risk.
In addition, when even launching a limited edition is burdensome, the industry is also conducting market tests using pop-up stores (temporary shops). In the midst of rapidly changing consumer trends, the core task has become striking a balance between responding to those trends and profitability.
A confectionery industry official said, "Operating pop-up stores through collaborations with specific commercial districts or specific companies can be a solution to partially test advance reactions to new products," and added, "We are continually exploring ways to expand existing brands without falling behind in popularity."