[K-Food Hidden Hero] "Competing with Premium Ingredients... Repurchase Rate 62%"

⑦ Kim Sangdong, Hyundai Department Store One Table Dedicated Buyer

[Asia Economy Reporter Lim Hye-seon] There is a ready-to-eat meal brand gaining popularity among department store VIP customers. The star is Hyundai Department Store's premium ready-to-eat meal brand, ‘One Table’. As the tendency to choose premium products that provide higher psychological satisfaction rather than simple and cheap meals grows stronger, One Table products made with premium ingredients sold at department store food halls are attracting attention.

Premium Ready-to-Eat Meals Have Twice the Repurchase Rate

Kim Sang-dong, the dedicated buyer for One Table at Hyundai Department Store (photo, 36), said on the 18th, "VIP customers account for more than half of total sales," adding, "Since its launch in 2017, 600,000 units of One Table products have been sold within a year."

There are also many loyal customers. The repurchase rate, where the same customer buys the product again, reaches 62%, twice as high as other ready-to-eat meals. Although the product price is about 5-20% higher than other ready-to-eat meals, this price barrier has been overcome by ‘quality’.

One Table is a premium ready-to-eat meal brand that emphasizes ‘fresh ingredients’ and ‘taste’ by leveraging the strengths of department store food halls. The core is to present ‘delicious ready-to-eat meals’ by combining specialty products from all over Korea sold at Hyundai Department Store food halls with cooking methods from famous restaurants. The brand name also contains the meaning of a table where families can gather and enjoy a heartfelt meal, despite being a convenient meal.

Buyer Kim Sang-dong explained, "Unlike most retailers’ private brands (PB) that focused on price at the time of One Table’s launch, we started with a strategy to create products that satisfy customers by using good ingredients and raw materials, even if the price is somewhat higher." He added, "We formed a ‘One Table Taste Evaluation Panel’ consisting of about 20 people, including housewives in their 30s and 40s, the main target group for ready-to-eat meals, and experts, and prepared for about a year before launching One Table." The panel included Jang Kyung-hoon, CEO of ‘Bonguri’, introduced in the comic ‘Sikgaek’ by cartoonist Heo Young-man, and Ko Se-wook, CEO of ‘Isipsajeolgi’, selected as a Michelin Guide one-star restaurant. The response was a so-called ‘big hit’. After its launch in November 2017, One Table sold 59,000 sets in two months, nearly three times the target sales volume of 20,000 sets.

Expanding from Korean Food to Snacks and Side Dishes

The most popular product among customers is ‘Hanwoo Yukgaejang’ (spicy beef soup). Unlike typical ready-to-eat meals on the market, it uses Hanwoo (Korean beef) and increased its proportion to 6%. Buyer Kim said, "The popularity factors include the use of domestic vegetables such as bracken, mung bean sprouts, green onions, and radish along with abundant meat, and the deep flavor that these ingredients bring out," adding, "Housewives in their 30s and 40s account for about 70% of total sales."

Another popular item is the ‘Chadol Kkakdugi Fried Rice’, launched last year in collaboration with the aged Hanwoo specialty restaurant ‘Umihak’. It uses premium rice ‘Sindongjinmi’, milled within five days, and employs a cauldron direct-fire method to enhance texture and nutrition. Buyer Kim analyzed, "Due to the prolonged social distancing caused by the COVID-19 pandemic last year, orders through Hyundai Department Store’s food specialty online mall ‘Hyundai Food Hall To Home’ increased," adding, "Sales last year rose 36.7% compared to the previous year, and this year sales are growing by 66.4%."

Hyundai Department Store plans to expand the number of One Table products from the current 40 to over 60 this year. The product categories will also increase from mainly Korean food to include snacks and side dishes. To this end, they are currently developing products in collaboration with several famous restaurants. Buyer Kim predicted, "One Table has opened the premium ready-to-eat meal market," and "The premium ready-to-eat meal market will continue to grow."

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