Convenience Store Launches 2,000 New Products Annually... Only 100 Survive

Convenience Store Trend 'Sokjeonsokgyeol'
Accelerating New Product Development Speed
Deciding Continuity Based on Sales Data

On the 3rd, a customer is purchasing a new craft beer product at the convenience store CU.

[Asia Economy Reporter Lim Chun-han] Convenience stores are speeding up to target the MZ generation (Millennials + Generation Z), who are sensitive to trends and prefer new products over steady sellers. Dozens of products developed within a month are released every week, and over 90% of these products disappear within 2 to 3 months, making "quick decision and execution" a new trend in convenience stores.

According to CU on the 3rd, the average number of new products released weekly is about 50, totaling around 2,000 annually. Among these, only 5-10%, about 100 products, continue to be sold for more than a year. More than 90% of the remaining products are discontinued within 6 months if sold for a long time, and most are discontinued within 2 to 3 months. Product generations are rapidly replaced depending on customer reactions and trending issues.

The speed of new product development has also increased. In the past, it took about 3 to 6 months, but recently, more products are planned and launched within 1 to 2 months. At CU alone, over 30 types of craft beers such as Baekyang BYC Bien Lager, Malpyo Green Grape Ale, Marilyn Monroe Beer, and Buldak Mango Ale have been released this year. The continuation of new products is usually decided based on 2 to 3 months of sales data. Products with high sales survive, while those with low sales are discontinued and replaced by other new products.

Even 1% of steady sellers are born. Gompyou Wheat Beer, which caused a sold-out frenzy after its release last year, is a representative example. Consomm?-flavored popcorn has become a long-lasting product operating for 10 years, gaining popularity to the extent of surpassing the traditional strong brand Saewookkang. The Giant Tteokbokki series has also settled as a steady seller by expanding its lineup to include Rabokki and Sundae.

Thanks to the "quick decision and execution" trend, performance is also increasing. BGF Retail's sales in the third quarter of this year reached 1.8365 trillion won, a 9.1% increase compared to the same period last year, and operating profit rose by 9.1% to 69.5 billion won.

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