250,000 Won 'Sold Out' vs 9,980 Won 'Hot Seller'... Polarization of Christmas Cakes

Hotel Cakes Popular Despite High Prices
Large Supermarkets Sell Cost-Effective Cakes
Convenience Stores Target Single-Person Households

Alluring Winter sold at Seoul Shilla Hotel. (Photo by Hotel Shilla)

[Asia Economy Reporter Lim Chun-han] Amid the recent persistent high inflation, consumer polarization is becoming increasingly evident. Ahead of the year-end, premium hotel cakes priced over 200,000 won have sold out, while more people are seeking cost-effective (price-performance) cakes at large supermarkets and convenience stores.

On the 22nd, Seoul Shilla Hotel introduced three Christmas limited edition special cakes on the 1st: Alluring Winter, The Brightest Moment Ever, and White Holiday. The prices of these products range from 130,000 to 250,000 won. Among them, the most expensive Alluring Winter was produced in a limited quantity of 50 per season and early reservations were fully booked. Chosun Palace sold four types?White Tree Special, Merry Santa House, White Forest, and Sweet Snow?priced between 85,000 and 250,000 won. The highest-priced White Tree Special cake is already fully reserved.

The Grand Intercontinental Seoul Parnas released five Christmas special editions: Merry-Go-Round, White Candle, Snowball, Centennial Ganache, and Gingerbread House. The highest-priced cake is 200,000 won. Each was sold in a limited quantity of 30 and all were sold out within less than two weeks of release. This year, hotel cakes raised prices compared to last year due to rising raw material costs but still maintain high popularity.

Large supermarkets are targeting consumers with affordable prices. Emart partnered with Shinsegae Food to launch the Bbangbbangduck Mini Cake at 9,980 won, selling over 15,000 units in three weeks. This accounts for half of the cakes sold at Emart from the 1st to the 20th of this month. The product features high-quality Seolhyang strawberries and chocolate toppings shaped like the Bbangbbangduck character.

Lotte Mart conducted pre-orders for Christmas cakes from the 8th to the 14th, with bakery sales increasing by 20% compared to the previous year. Representative products include Christmas Stollen (14,400 won), Milky Strawberry (26,000 won), and Choco Tree Forest Ball (26,000 won). Homeplus also saw a 40% increase in pre-order sales of Christmas cakes from the 1st to the 14th compared to the same period last year. Montblanc Bakery sells eight types of cakes, including Very Merry White Christmas (17,010 won) and Classic Strawberry Fresh Cream (26,010 won).

Convenience stores are targeting single-person households. GS25 sells four types of mini cakes: Dore Dore Strawberry Santa Cake, Dore Dore Milk Cloud Cake, Dolce Chocolong Cake, and Blueberry Long Cake, priced between 5,900 and 6,500 won. Seven Eleven introduced Red-Haired Anne Egg Castella and Strawberry Roll Cake at 18,000 won. Emart24 launched Panettone and Pandoro, festive breads from Italy traditionally shared with family or given as gifts during Christmas, as unique products priced at 14,900 won.

An official from the distribution industry said, "Due to recent effects such as interest rate hikes, real consumer spending power has decreased, and only ultra-high or ultra-low priced products are selling. Mid-priced products have disappeared, and consumer polarization is intensifying."

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