[Distribution Hot People] "Fresh Jeans for Around 10,000 Won, Breaking the Supermarket Stereotype"

Interview with Kang Byung-gu, Lotte Mart MD

Unusual to Plan Fashion Instead of Food
Price at 19,800 Won, About Half the Market Price
Sell-through Rate Twice as High as Expected, Positive Outcome
'Series 2' Scheduled for Release Next Spring

"I wanted to let people know that there are many good clothes at the mart besides food. Our job is to deliver something new to consumers."

There is a person who broke the existing perception of ‘mart = fresh food’ and captivated consumers with affordable yet high-quality clothes. He is Byunggu Kang, the merchandiser (MD) behind last month’s ‘half-price jeans’ launched by Lotte Mart. Kang MD joined Lotte Mart Yeongdeungpo branch in 2001 and has built up 7 years of experience as an MD this year, after working as a supervisor and in various fields such as sports and footwear.

Nevertheless, from the start, there were worried eyes. Generally, clothing is classified as an unpopular category in large marts, and four years ago, Lotte Mart’s ambitious private fashion brand ‘Te’ did not meet expectations and was discontinued after three years. Kang MD said, "Especially since clothing is strongly perceived as a minor field in marts, there were many internal concerns. Still, I thought it was the MD’s role to offer good products at reasonable prices regardless of the category, so I took on the challenge."

Kang Byung-gu, Product Planner (MD) at Lotte Mart. [Photo by Lotte Mart]

The most important aspect when planning the half-price jeans was undoubtedly ‘reasonable price.’ In March this year, Kang MD partnered with Dongkwang International, a fashion company operating women’s brand ‘Soop’ and men’s brand ‘Adhoc,’ to secure fabric in advance and increase cost competitiveness. Unlike typical fashion brands, they minimized marketing costs such as promotion and advertising. The belief was that if good products were offered at reasonable prices, many consumers would recognize them without heavy marketing efforts. Kang MD said, "Based on past experience, I felt that enhancing the competitiveness of the product itself was the most important. I decided to focus on offering clothes that anyone can comfortably wear at reasonable prices."

The half-price jeans born from this effort are currently sold at 19,800 KRW, about half the average market price of SPA brands, at 41 Lotte Mart stores nationwide. The current sell-through rate is 30%, more than twice the expected rate, and sales are about three times higher than other clothing products at Lotte Mart. Consumer response has exceeded expectations. Kang MD explained that many female customers who tried and were satisfied with the jeans returned to buy for their husbands and sons.

Encouraged by consumer response, Kang MD plans to launch ‘Half-Price Jeans Series 2’ around February next year. The product range will expand from one straight fit to two types, and colors will increase from black and indigo to 3-4 options. The expected volume is 3 to 4 times the previous amount. Kang MD emphasized, "Many customers naturally think of food when they think of marts, but I want to let them know that Lotte Mart has as many good clothes as food. We won’t stop at half-price jeans; we want to continue making reasonable and good clothes to deliver satisfaction to consumers."

Models are promoting by holding half-price jeans at Lotte Mart Yangpyeong branch.
[Photo by Lotte Mart]

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