Distribution Industry Missing 'Crowd Funding'... New Product Launches Continue on Wadiz

Crowdfunding Gains Attention for Marketability Forecast and Promotion Advantages
'Pre-Investment, Post-Production' Efficient... Official Release After Funding
New Product Launches Continue in Food & Beverage and Fashion Companies

Maeil Dairies 'Sangha Farm Organic Yogurt Plain Low Fat'./Photo by Maeil Dairies

[Asia Economy Reporter Song Seung-yoon] The distribution industry is continuously launching new products through the 'crowd funding' method. Crowd funding is a transaction method where funds are secured by receiving pre-orders from consumers, and once the minimum target amount is reached, products are manufactured based on that. Wadiz is the dominant domestic crowd funding platform. Most companies also showcase their products on Wadiz.

According to the industry on the 2nd, Maeil Dairies first introduced the yogurt product 'Sangha Farm Organic Yogurt Plain Low-fat' on Wadiz on the 27th of last month, and as of the morning of that day, 6.64 million KRW, which is 1328% of the target amount, had been raised. The product will be officially launched on the 16th of this month.

Ottogi also unveiled its new product 'Olive Basil Tuna' through crowd funding. Since its pre-opening on the 8th of last month, more than 33.69 million KRW has been raised, far exceeding the target amount of 500,000 KRW, achieving 6739%. Ottogi expects more than 1,500 customers to participate in the funding, including the complete sell-out of the first production batch. This product is also scheduled for official release on online malls and other channels after the funding ends this month. CJ CheilJedang introduced two types of Excicle Crispy Chips through crowd funding and additionally launched the plant-based protein drink 'Ultive Plant U' on the 29th of last month. The two crispy chips will also be officially stocked in some distribution channels from the second half of the year, and Ultive Plant U will be officially launched within the year.

Kolon FnC is conducting funding for the slacks pants 'Coolax 2.0', and LF also launched the functional T-shirt 'Namsan Short Sleeve' on Wadiz. These products have currently achieved 7864% and 4438% of their funding goals, respectively.

Companies' crowd funding efforts are more focused on confirming market reactions and predicting demand rather than profitability. There is also the advantage of promotional effects through limited edition products. Consumer reactions and opinions can be reflected in the products with the official launch in mind. Since products are manufactured with pre-investment, there is no leftover inventory, making it efficient from the company's perspective. Sometimes, products that gain attention through crowd funding find it somewhat easier to enter other platforms based on that.

An industry official said, "There is an advantage in being able to observe consumers' vivid reactions to products and in attracting attention and interest in new products, so the trend is to prefer crowd funding," adding, "Since it does not cost much and has many benefits, many companies are jumping in."

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