Convenience Store 'PB War'... From Price to Quality

Got Heyroo ramen at CU.

[Asia Economy Reporter Lim Chun-han] Convenience stores are focusing on differentiation strategies by strengthening their private brand (PB) products. While PB products used to focus solely on low prices, recently, products combining quality and eco-friendly consumption trends have been launched one after another.

According to CU on the 24th, PB products accounted for about 20% of total sales last year, showing their popularity. This is thanks to various differentiation strategies in terms of cost-effectiveness, taste, and concept. GS25 has representative PB products such as Omori Kimchi Stew Ramen, Cafe25, and Yours Schnel Chicken. As of last year, Omori Kimchi Stew Ramen surpassed cumulative sales of 46 million units. From January 1 to the 20th of this month, sales increased by 19.3% compared to the same period last year, currently ranking first in ramen product sales.

Seven Eleven has a total of about 2,000 PB products. The sales composition ratio was 36.4% last year and has been increasing annually. Recently, in addition to the basic PB brand Seven Select, it has been expanding private brands in specific categories. Representative examples include the integrated lunchbox brand Hankki Research Institute, fresh food integrated brand Seven Farm, coffee bean brand Seven Cafe, and single-person household tailored HMR brand Sobahn. Emart24’s differentiated products total about 500 types, accounting for 27% of total sales composition. Among them, the best-selling products Min-saeng Ramen and Min-saeng Coffee saw sales increase by 61% and 56%, respectively, from January 1 to the 19th compared to the same period last year.

In particular, competition in ultra-low-price and eco-friendly PB products is active. CU launched Heyroo ramen and sparkling water on the 22nd. Heyroo Ramen Deuktem is priced at 1,900 won for a 5-pack, making the price per pack 380 won. Until now, the industry’s lowest-priced ramen was Emart24’s PB bagged ramen Min-saeng Ramen at 390 won per pack. Heyroo Sparkling also has a price per 100ml that is about half that of general manufacturer products, making it the lowest-priced private brand sparkling water. Major convenience stores are also strengthening their eco-friendly PB product lineups by consecutively launching unlabeled bottled water, among others.

Exports of PB products overseas are also increasing. Mongolia CU’s Heyroo products account for nearly 30% of total sales. GS25 is selling collaboration box products including Yours through direct overseas purchase sites, and Emart24 exported 350,000 units of Min-saeng Ramen to the United States last month.

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