In the food industry, convenience stores are establishing themselves as "product co-development partners" that go beyond simple sales channels to take part from the new product planning stage. In the past, it was common for manufacturers to develop products and then place them with distributors, but recently, with convenience stores at the center, manufacturers and distributors are increasingly collaborating from the start by sharing consumer data and market trends to jointly plan product concepts, prices, and volumes. In some cases, convenience stores propose ideas first, and in others, manufacturers propose new products and then work with distributors to flesh them out, diversifying the ways they collaborate.
On the 19th, according to the food industry, major food companies such as CJ CheilJedang and Nongshim, Lotte Wellfood, Orion are rolling out a series of exclusive products co-planned with convenience stores. As consumer trends change faster, the analysis is that a strategy is taking hold in which, rather than launching new products nationwide from the start, companies first gauge market response through convenience stores and then expand sales channels.
In practice, collaboration begins at the initial planning stage. A GS Retail official, which operates the GS25 convenience store, said, "From the product development stage, we discuss with manufacturers what flavors and concepts can gain attention in the market," and added, "MDs sometimes propose products based on keywords that are trending on social media (SNS) or consumer trends, and there are also cases where we refer to popular products overseas and propose, 'Let's make a product with this concept together.'"
Conversely, there are cases where the manufacturer proposes a product first. Recently, Nongshim released potato chips in different flavors with CU, GS25, 7-Eleven, and E-MART24. For this series, the manufacturer first developed several products and proposed them to distributors, after which each convenience store selected products that fit its customer base, and the collaboration proceeded accordingly. Depending on the product characteristics, who makes the first proposal may differ, but the explanation is that the structure of jointly creating products from the planning stage is becoming increasingly common.
Similar cases are following one after another. Lotte Wellfood introduced the convenience store–exclusive "Kkokkalcorn Night Market series," selling more than 800,000 bags in the first two weeks after launch and is considering additional production. Orion is also expanding convenience store–exclusive products, such as launching "Chunsik Kkobuk Chip sweet potato tanghulu flavor" in collaboration with GS25.
For manufacturers, a key advantage is the ability to reduce initial expense burdens. A Nongshim official said, "If you launch a product across all distribution channels simultaneously, the burden of sales and marketing expenses is heavy, but if you collaborate with a specific convenience store, the distributor lends support to promotional activities, allowing us to reduce the initial burden," and added, "If the response is good, it is also possible to expand sales to other distribution channels afterward."
A Lotte Wellfood official said, "Recently, releasing limited-edition flavors by convenience store at the same time has established itself as a fun element for consumers," and added, "By adding new flavors and concepts to long-running brands, we can convey a fresh image to younger consumers."
Convenience stores are also actively expanding this kind of collaboration because it enables them to secure differentiated products. Exclusive products that add new flavors to existing popular brands easily attract consumer attention, and the scarcity of being available only at a specific convenience store also serves as a competitive edge.
A GS Retail official said, "When we integrate new flavors or concepts into well-known brands, consumers can experience new products based on brands they are familiar with, and the fact that they are available only at a specific convenience store becomes a differentiating factor," and added, "In practice, this has led to natural virality, with consumers visiting convenience stores in search of differentiated products and then sharing purchase proofs and reviews on SNS."
The industry expects this kind of collaboration to expand further. As consumer trends become more segmented and convenience stores intensify competition to secure differentiated products, the outlook is that joint planning between manufacturers and convenience stores will take root as a new way to develop new products.
A food industry official said, "In the convenience store channel, demand for exclusive products continues steadily, and manufacturers benefit by being able to rejuvenate their brands through new flavors and concepts," and added, "Because it helps both the channel and the manufacturer, collaboration will continue to expand."