Benefit or risk... The pros and cons of the rising 'Goods Marketing'

'Goods Marketing' Active but Issues Like Starbucks 'Summer Carry Bag' Incident
Expert: "Goods Marketing Will Still Be Active in the Future"

[Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] The distribution industry’s 'goods marketing' craze targeting the MZ generation (Millennials + Generation Z) continues. The industry is striving to attract consumers' attention by releasing limited-edition goods through various collaborations. Goods marketing is positively evaluated not only for enhancing brand awareness but also for contributing to increased sales. However, if issues such as product safety arise, the brand image can be severely damaged, requiring caution.

With the summer peak season underway, goods marketing in the distribution industry is heating up day by day. HiteJinro Beverage recently launched the 'Hite Zero 0.00 Toad Mug Set,' utilizing HiteJinro’s flagship character 'Dukkeobi' goods. The set consists of 12 cans of the non-alcoholic beer-flavored beverage 'Hite Zero 0.00' and one Dukkeobi mug, and was sold in a limited quantity of 5,000 units.

Meanwhile, Dongseo Food also released a limited quantity of the 'Maxim Coffee Mix X Minions Special Package' last month, featuring the character 'Minions.' Dongseo Food also launched seven types of goods using the Minions character, including tumblers and mood lamps.

The reasons why the distribution industry is rushing to release goods are multifaceted. First, from a corporate perspective, goods marketing can be expected to increase sales and brand favorability. From the consumer’s perspective, goods satisfy consumption desires and provide enjoyment, making them attractive. Especially, limited-edition goods are even more popular among young consumers due to their 'scarcity,' as they can only be purchased during a set period.

Photo by HiteJinro.

However, if issues such as product safety or hygiene arise, the brand image can be damaged instead. In particular, Starbucks Korea’s goods marketing has significantly contributed to sales, but recently became controversial after carcinogens were detected in its goods.

Earlier, Starbucks Korea announced on the 28th of last month that formaldehyde, a carcinogen, was detected in the promotional 'Summer Carry Bag.' Formaldehyde is classified as a Group 1 carcinogen by the International Agency for Research on Cancer under the World Health Organization (WHO).

Starbucks issued a statement saying, "As a result of tests conducted by a nationally accredited professional testing agency, an average of 459 mg/kg of formaldehyde was detected on the outer surface of the 'Summer Carry Bag' before opening, and an average of 244 mg/kg on the inner surface. For products two months after opening, averages of 271 mg/kg on the outer surface and 22 mg/kg on the inner surface were detected." They added, "We sincerely apologize for causing great concern and disappointment to many customers."

Despite Starbucks’ apology, criticism remains strong. Trust in the safety of Starbucks goods has already been damaged. In response, Starbucks promised to restore customer trust by ▲providing newly produced goods (or a 30,000 KRW gift card if the customer does not want the goods) ▲strengthening quality verification processes ▲establishing stricter internal safety standards than national safety standards.

Meanwhile, experts predict that the goods marketing craze in the distribution industry will continue. Professor Eunhee Lee of Inha University’s Department of Consumer Studies said, "Companies can reinforce brand recognition to consumers through goods and express gratitude to loyal customers through goods. Especially, goods have a purchase promotion function. The 'lock-in' effect, which can keep customers loyal, can be maximized through goods, so goods marketing will remain active in the future."

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