30 Takeout Coffees for 50,000 Won... Subscription Economy Booms in Department Stores and Shopping Malls

Offering bundle sales at affordable prices
Increasing offline visitors
and rising non-face-to-face subscriptions with curation
Emphasizing health, taste, and value consumption

[Asia Economy Reporter Cha Min-young] As the novel coronavirus disease (COVID-19) continues for a long time, subscription economy services aimed at attracting offline walk-in customers are increasing. Conversely, 'Yontact (non-face-to-face)' subscription services that curate products and deliver them right to customers' doorsteps in line with the non-face-to-face culture are also on the rise.

'Win-Win' Strategy with Affordable Prices

According to the distribution industry on the 25th, HDC I'Park Mall, a distribution specialist company affiliated with the HDC Group, will start selling coffee subscription tickets from the 5th of next month. For a monthly subscription fee of 50,000 won, customers can receive one Americano every day for 30 days at the Avant Gallery Cafe on the first floor of I'Park Mall Living Park, offering benefits about 65% cheaper than the regular price.

AK Plaza started selling bakery subscriptions that allow 'one bread a day' and coffee subscriptions containing up to 15 coupons at the Bundang branch from the 25th until the 4th of next month for the entire month of October. Customers who purchase can choose one bread priced under 4,000 won daily at the 'La Romde Bbang' store until October 31. Among customers using the bakery subscription service, those who purchase over 10,000 won will receive additional discounts and voucher promotions. The coffee subscription service is also offered simultaneously. It can be purchased for 30,000 won at the 'Facade Cafe' on the 7th floor of the Bundang branch until October 11, and from October 5 to 31, customers can choose between Americano and latte, taking out up to two cups per day and a maximum of 15 cups throughout October.

From the perspective of distribution companies such as shopping malls, securing fixed customers can capture walk-in demand, allowing for additional synergy effects. From the customer's perspective, they can gain satisfaction by purchasing products or using services at affordable prices. The coffee subscription service introduced by E-Mart Traders is a representative case that achieved effective results. According to Traders, the redemption rate of coffee subscription tickets sold over two months from March to April reached 40%.

The Core of Non-Face-to-Face Subscriptions is 'Taste'

Conversely, subscription services aimed at customers reluctant to go out due to COVID-19 are also increasing recently. In particular, curated services tailored to taste consumption such as fruits and bread have received positive responses in pilot operations and are expanding mainly in department stores.

Shinsegae Department Store is selling subscription service vouchers for flower and fruit regular delivery services for the first time during the main Chuseok sales. The fruit regular delivery service costs 45,000 won per delivery or 180,000 won per month, delivering 3 to 5 kinds of seasonal fruits carefully selected by Shinsegae Department Store fruit buyers to the customer's doorstep every Thursday. This is worth about 200,000 won. The fruit subscription service, first introduced at Shinsegae Department Store Gangnam branch in May, increased its number of subscribers by 150% in just three months. The flower regular delivery service will also be introduced during the main Chuseok sales period. However, the delivery area is limited to the metropolitan area, and customers can receive one of air-purifying foliage plants, fresh flowers, or orchid plants monthly for three months from October to December. It is sold to the first 100 customers at Jane Packer stores in the basement level 1 of Shinsegae Department Store main branch and Gangnam branch.

Lotte Group's integrated online mall 'Lotte On' recently launched a subscription service for bakery products from Lotte Department Store's bakery brand 'Yeoseot Si Oven.' Popular products such as strawberry bread and fig orange are delivered once a week for a total of four times a month. The product packages are offered in three price ranges: 80,000 won, 110,000 won, and 145,000 won, providing a 10% discount compared to purchasing individually.

Son Eunkyung, head of the MD Development Division at Lotte Department Store, said, “Along with the non-face-to-face trend and improvement in quality of life, subscription services based on value consumption are expanding in the food sector.”

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