Daesang 'JibeuroON' · Shinsegae 'Olban'
Rapid Sales Growth with Differentiated Menus
Popular Menus Also Released Offline
[Asia Economy Reporter Choi Saeng-hye] The food industry is focusing on 'online only' products sold exclusively through online channels instead of offline stores. These products are advantageous for producing a wide variety of small-quantity items to meet diverse consumer preferences, and by reducing distribution costs, companies can increase quantity and improve quality, resulting in positive consumer reviews.
◆ Daesang 'JibeuroON' Surpasses 6 Billion KRW in Q1 = According to Daesang on the 16th, the online-exclusive brand 'JibeuroON' has seen rapidly increasing sales, exceeding 6 billion KRW in the first quarter. JibeuroON is a service that allows customers to conveniently enjoy famous local restaurant menus at home, characterized by reasonable prices and excellent quality. Launched in March 2017, its sales were only about 3 billion KRW in the first year but steadily grew to approximately 11 billion KRW in 2018 and about 17 billion KRW last year.
A Daesang representative explained the background of launching JibeuroON, saying, "With the rapid growth of the home meal replacement (HMR) category due to the increase in single-person households, there has been a rise in the development and consumption of small-quantity and small-packaged products. As 'pragmatism' and 'cost-effectiveness (performance relative to price)' consumer values expanded, the need for exclusive products developed by online distributors emerged. In particular, we thought online-exclusive products that could differentiate specifications and prices from the offline market were necessary."
In the case of online sales, inventory can be managed at the headquarters level, allowing production volumes to be adjusted according to consumer preferences. This also reduces inventory management costs for the company.
◆ Expanded Choices with Frozen Cakes and Generous Portions of Fried Rice = Shinsegae Food's 'Beckia Enouveau Frozen Cake,' launched exclusively online last November, saw its March sales increase by 257% compared to January. The number of online-exclusive frozen cake varieties has expanded from just three at launch to seven currently. Recently, in collaboration with the dining company Guseul Hambak, Shinsegae Food introduced 'Olban Guseul Hambak Steak' exclusively for online and home shopping channels. Initial stock of 4,000 sets received orders exceeding 5,000 sets, prompting a second production run.
Lotte Food's 'Chef Food Frozen Fried Rice' line, launched exclusively for online sales in December last year with five varieties, also saw March sales increase by about 170% compared to January. The five types of Chef Food frozen fried rice were designed for sale on various online malls, including open markets. The portion sizes are more generous than previous products.
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◆ Entry into Offline Market as Well = Samyang Foods' online brand 'Bultaneun Series,' launched for the first time last October, has expanded into the offline market as sales increased. The Bultaneun Series targets the main online purchasing demographic of people in their 20s and 30s by differentiating products and packaging. The first product, 'Bultaneun Gochu Jjajang,' launched last October, is also sold at convenience stores in the Seoul metropolitan area. Subsequently, Samyang Foods strengthened the Bultaneun Series lineup by adding 'Bultaneun Gochu Jjamppong' (December last year) and 'Bultaneun Gochu Bibimmyeon' (March this year). Currently, the three Bultaneun Series products sell about 200,000 units monthly through online channels alone.
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