"Burden of High Prices on Shopping Baskets" Online Shoppers Also Seek '1+1' Deals

SSG.com '1+1' Category Sees Increase in Visitors and Page Clicks
Top Sales Include Repeat Purchase Items Like Tofu, Eggs, and Formula
Bonus Products Popular at Convenience Stores, CU-Related Sales Up 25.3%
Beyond Loss Leaders, Attracting Loyal Customers with Expanded Products and Dedicated Space

SSG.com, '1+1' category (Photo by SSG.com).

[Asia Economy Reporter Kim Yuri] As soaring prices drive consumers to seek cost-effective (price-to-performance) products, 'buy one, get one free' and 'buy two, get one free' promotional items are gaining popularity not only offline but also online. While freebie products have traditionally served as 'bait products,' recent growth in thrifty shoppers has led to these items themselves playing a role in increasing channel loyalty.

According to the distribution industry on the 13th, SSG.com’s '1+1 category,' which separately collects and displays freebie promotional products within its 'Sseuk Delivery' service, saw a daily average number of visitors (UV) increase by more than 10% during the period from August 23 to September 22?when price issues became prominent?compared to the same period two months earlier. Page views (PV) during the same period rose by about 20%.

SSG.com stated, "We launched this service in June last year as a digital transformation (DX) strategy that applies the 1+1 concept, a representative discount event of large supermarkets, to the online channel. Recently, amid high inflation, this service has attracted significant attention." They added, "Freebie sales focus on fresh foods such as vegetables, seafood, dairy products, and side dishes, as well as daily necessities like tissues, toothbrushes, toothpaste, and detergents. Additionally, products in various categories including pet supplies, baby and child products, toys, beauty, and fashion are sold as freebies with extra discount benefits, which is drawing consumer interest." In fact, over the past two months, top-selling items have mainly been repeat-purchase products such as tofu, eggs, and infant formula.

In the distribution industry, 1+1 marketing has traditionally been conducted by exposing 1+1 products among regular items to attract customer interest and encourage additional purchases of other products. However, recently, retailers have been creating separate categories exclusively for 1+1 products and regularly changing promotional items to encourage consumers to check them each time, thereby increasing channel loyalty. Online and offline retailers with buying power are increasingly using 1+1 products as part of killer categories with the longer-term goal of securing loyal customers.

Following this trend, freebie product purchases are increasing not only in large supermarkets focused on bulk buying but also in convenience stores offline. CU convenience store reported that sales growth of promotional items such as 1+1 and 2+1 last month increased by 25.3% compared to the same period last year, surpassing the growth rate of the number of freebie products (15%) during the same period.

Industry insiders expect high demand for cost-effective and promotional products to continue amid the high inflation situation. They plan to expand the assortment of these products and strengthen marketing by creating separate categories and offering additional discounts.

Homeplus is attracting customers by regularly changing promotional items in its annual event, the 'Price Stability Project.' Until the 19th, it is focusing on food discounts by offering new menu items in the Dangdang series, following the 'Dangdang Chicken,' which surpassed one million cumulative sales, at promotional prices. Starting today, SSG.com launched '99 Deal,' offering popular grocery items to new and dormant customers at a 99% discount off the regular price to attract cost-conscious consumers. Additionally, for ten days starting today, 'Obanjang Week' will offer up to 50% discounts on fresh and processed foods, home meal replacements (HMR), and health foods selected by buyers.

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