Competition Among Food Specialty Malls Triggered by 'Market Kurly'... Let's Wear a Unique 'Color'

Permill Focuses on Securing Product Competitiveness... Market Kurly Maintains High-Quality Policy
Food Companies Renovate Online Malls Amid Growing Contactless Trend

The Dan Sweet Corn from Permill.

[Asia Economy Reporter Lee Seon-ae] Competition among food specialty malls is getting fiercer. Food specialty mall companies, led by Market Kurly, are striving to differentiate themselves from existing e-commerce by considering the increasingly demanding tastes and preferences of consumers. This is due to the surge in online food consumption driven by the acceleration of contactless consumption trends. As a result, food companies are actively strengthening their online malls.

According to Table Life on the 29th, Permill has made a bold move to strengthen its products. The company believes that providing competitive products to capture diverse consumer tastes is key to securing competitiveness in the fierce market.

Accordingly, Permill is establishing itself as a specialty food platform specializing in high value-added agricultural, marine, and livestock products such as Chodang corn, cave-stored sweet potatoes, 3-year aged garlic, Iberico Bellota 100%, and King Tiger shrimp. In particular, Chodang corn attracted attention as the first large-scale cultivation and sales in Korea. Consumer response to the product was enthusiastic, with 400,000 units of "The Dan Chodang Corn" sold within two months of launch. Iberico products include premium "Bellota 100%" grade items supplied to the Spanish royal family. Additionally, Permill developed a "Sweet Box," a subscription box containing 5 to 7 types of fruits in small quantities for single or two-person households, which has also received high praise for its unique product composition.

A Permill representative said, "In the growing e-commerce market that is becoming more specialized and segmented, the growth of food specialty malls tailored to diverse consumer tastes and sophisticated palates is expected. At Permill, expert product planners (MDs) with a deep understanding of food carefully select competitive new varieties and local agricultural products, establishing solid distribution environments through over seven years of contract farming, procurement, and exclusive product development."

Iberico Bellota 100% Pork Neck Steak by Permill.

Yam Table, an online and offline distribution and sales company that directly connects seasonal and flash-frozen seafood and processed seafood products to consumers, is also a notable food specialty mall. Unlike existing online sellers that distribute products made by third parties, Yam Table directly purchases raw materials, cleans, selects, and processes them, then sells them in small packages. Through operating four processing centers in Geoje, Tongyeong, Sokcho, and Pohang, they process various seafood items directly purchased from producers. Targeting the difficulty of preparing and cooking seafood at home, they focus on home meal replacement (HMR) products such as seasoned cockles, marinated shrimp, and sea squirt bibimbap, which are easy to enjoy at home.

Meatgram, a livestock distribution startup, operates 'Meatgram Mall,' which sells small quantities of various premium meat cuts, the 'Meat Quick' same-day delivery service in the metropolitan area, and 'Majangdong Sodo-dokdan,' which sells meat up to 40% cheaper than regular butcher shops. Meatgram Mall emphasizes a premium strategy through specialty breeds and ultra-fresh meat. For example, the 'Meat Sample' product, which contains small portions of various specialty cuts allowing consumers to explore their preferences, sold very well. They also launched 'Ultra-Fresh Yukhoe' (raw beef), delivering products within 24 hours of slaughter to pre-purchasers on the same day. By utilizing their delivery network, they supply items that were previously consumed only in small quantities near slaughterhouses, receiving high consumer approval.

Market Kurly, regarded as the pioneer of the food specialty mall era, plans to consistently maintain product quality competitiveness and delivery services. Market Kurly started in May 2015 as Korea's first dawn delivery startup and has strengthened its dominance in the fresh food dawn delivery market. Its sales grew significantly from 17.3 billion KRW in 2016 to 428.9 billion KRW last year. Market Kurly currently offers about 12,000 products through dawn delivery, with 20% composed of independently distributed products, establishing its own brand. Its high-quality policy is also a competitive advantage. Market Kurly gains consumer trust by signing long-term contracts with certified producers to guarantee sales. Last year, the repurchase rate reached 61.2%. Recently, Market Kurly succeeded in raising 200 billion KRW in investment, which will be used to strengthen the Gimpo logistics center scheduled to open at the end of the year, enhance customer service, and recruit talent.

The reason food specialty malls are each strengthening their competitiveness is due to the busy moves by food companies to reinforce their online malls. Companies such as Dongwon F&B, CJ CheilJedang, Daesang, and Korea Yakult are actively renovating their online malls, launching specialized online brands, and offering dawn delivery to prevent losing customers. A food industry insider explained, "Food companies are putting their lives on the line online," adding, "To survive the contactless trend, they are pursuing strategies to strengthen product power, delivery services, and membership benefits in their online malls."

This content was produced with the assistance of AI translation services.