"Capture Loyal Customers in the Untact Era"... Food Industry Strengthens Online Direct Shopping Malls

Surge in Food Purchases on Online Malls Due to COVID-19
Improving UI, UX and Strengthening Related Marketing

[Asia Economy Reporter Choi Saeng-hye] The food industry is strengthening its own online malls to secure loyal customers. In particular, following the surge in online food purchases after the outbreak of the novel coronavirus disease (COVID-19), companies intend to enhance one-on-one sales with consumers through their official malls to drive brand growth.

According to the food industry on the 21st, CJ CheilJedang plans to upgrade 'CJ The Market,' which was positioned as a 'home meal replacement specialty mall,' into the number one 'food specialty mall' proposing a healthy home meal lifestyle 365 days a year. The range of products sold on CJ The Market has been diversified to allow consumers to purchase various foods all at once in one place. The product lineup has expanded from CJ CheilJedang’s existing products to include fresh and seasonal foods such as fruits and vegetables, and bulk products are also available for practical purchase. Additionally, the product curation service that suggests menus and table settings tailored to customers’ food culture, lifestyle, and preferences will be strengthened.

To enhance consumer satisfaction, CJ The Market plans to improve the user interface (UI) and user experience (UX) to make shopping more convenient. Since its launch in July last year, CJ The Market has surpassed 2 million members within a year, and attracted 600,000 new members in the first half of this year. With the upgrade to a food specialty mall, it is expected to attract more active customers.

The premium beef brand ‘Excel Beef’ is strengthening loyalty on its online mall and attracting customers by promoting high-quality products such as chilled (non-frozen) meat and premium chilled aged beef, as the number of consumers purchasing meat online has surged due to COVID-19. Excel Beef’s online mall sells premium quality beef recognized by the United States Department of Agriculture (USDA) at the highest grades. In particular, reflecting the trend of small packaging consumption, it launched the ‘Excel Cut’ brand, which packages beef products in single servings, actively targeting the millennial generation’s 1-2 person households, the main consumers of online food purchases. A representative small-packaged product is the recently increasing demand ‘LA Galbi,’ which is packaged in 1kg units instead of the existing 3kg or 5kg units, allowing small households to enjoy it conveniently.

Excel Beef is a beef brand that has firmly established its status in Korea, ranking first in the domestic U.S. beef market share for 11 consecutive months since 2019 according to the U.S. PIERS report. It is used by famous steak houses in the U.S. mainland, allowing consumers to enjoy renowned beef fresh at home. As the number of people eating home meals increases, demand for its online mall is also growing.

Dongwon F&B has launched its paid membership service ‘Band Plus’ on its own mall and aims to secure loyal customers through premium membership services. Band Plus members receive discounts and reward benefits on Dongwon Mall for one year, along with premium services such as exclusive membership events.

Band Plus membership is available for an annual fee of 30,000 KRW and offers members benefits exceeding the membership fee. The 30,000 KRW annual fee is immediately paid back as reward points upon joining, and members enjoy an additional 5% discount on Dongwon products, 1% rewards on Band and Cool Band deliveries, and over 20% discounts on all products from the comprehensive health functional food brand GNC, among various membership services.

Meanwhile, according to the online shopping trend announced by Statistics Korea, online shopping transaction volume from April to June this year reached 37.4671 trillion KRW, a 15.2% increase from 32.5293 trillion KRW in the same period last year. In particular, there was a clear increase in food services (73.8%) and food and groceries (38.7%).

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