[K-Shaped Consumption] ④A Steam Iron for 4,980 Won? Ultra-Low-Priced Private Labels Attract Big Corporations Too

Interview with Emart Overseas Sourcing Buyer Moon Jeonghun

Introduction of Ultra-Low-Priced PL '5K Price' Small Home Appliances

Sourcing for Manufacturers in China to Meet Target Pricing

Achieving Ultra-Low Prices through Buying Power

"How much did you say this iron costs?"

A senior female customer who visited Emart’s Yongsan branch in Seoul lingered for a while in front of a display of boxes from Emart’s ultra-low price private label brand, "5K PRICE." She appeared quite surprised to see a steam iron priced at just 4,980 won. Given that this is a corded steam iron commonly found in electronics sections, she was notably astonished that a product with steam functionality was being sold for less than 5,000 won.

This product marks the first entry into the small home appliance category for Emart's 5K Price lineup, which was launched in August last year. Moon Junghoon, Overseas Sourcing Buyer at Emart, who led the introduction of this item, said, "The most important factor when selecting products was how frequently the item is used," and added, "We believed that if we introduced a daily-use appliance like an iron, it would naturally become a touchpoint for customers to experience the 5K Price brand."

Moon Junghoon, Overseas Sourcing Buyer at Emart, is explaining the 5K Price Steam Iron sold for 4,980 won. Provided by Emart

The 4,980-won price point was chosen because it is both accessible for customers and considered exceptionally affordable. It matches the price of wired earphones sold under the 5K Price lineup. While even the most affordable steam irons from established brands typically sell for between 20,000 and 30,000 won, this product is about four to five times cheaper, yet still aims to deliver enough user satisfaction. To achieve this, Emart searched for a manufacturer capable of meeting those standards.

Buyer Moon recalled, "We reviewed several countries and manufacturers, but in reality, it was extremely difficult to meet a unit price under 5,000 won. In particular, with new suppliers, issues like trust, order volume requirements, and quality reliability made it virtually impossible to achieve that price point."

After much trial and error, they found a manufacturer in Ningbo, eastern China, that could commercialize the product under the required conditions. Emart has a track record of business in this region from when it operated overseas stores, so trusted suppliers—who passed internal factory audits—were available for negotiations. Among them, Emart built a consensus with a long-standing partner and conducted extended price negotiations. Buyer Moon explained, "We offered negotiation cards that would interest the manufacturer, such as maximizing order quantities and increasing volumes for other product lines that Emart directly sources."

A Steam Iron priced at 4,980 won is displayed in the 5K Price Zone at Emart Yongsan Store. Provided by Emart

It took about six months to bring the steam iron to market, but just as the official launch was approaching, new variables emerged. The Middle East war, triggered by U.S. and Israeli airstrikes on Iran, caused a significant surge in exchange rates, which inevitably threatened the cost structure established during earlier negotiations. To offset this, Emart increased order quantities for the steam iron as much as possible, managed shipping schedules, and streamlined costs related to design and packaging to keep the price below 5,000 won. Buyer Moon said, "When working in overseas sourcing, you’re heavily affected by unpredictable external variables like exchange rate fluctuations and rising raw material costs," and emphasized, "The ability to respond flexibly to such situations is also crucial."

To dispel concerns that "cheap means poor quality," Emart obtained the national integrated certification mark (KC) to guarantee consumer safety and product quality, and also completed in-house inspections through external professional agencies according to Emart’s internal standards. Buyer Moon stressed that, because of this thorough safety review, there is a clear distinction from low-priced online direct import items that are frequently criticized for poor quality. If a steam iron is found to be defective initially, customers can exchange or refund it at the store, and a customer service phone number is provided for after-sales support.

The strategy of stimulating consumer curiosity with ultra-affordable small appliances has proven effective, as about 80% of the initial stock of 5K Price steam irons has already been sold. As the polarized "K-shaped" consumption trend continues to spread, all 5K Price products have drawn significant attention—over 23 million units across more than 230 types have been sold in the seven months since launch. Products in this category are being sold at up to 70% lower prices compared to general brand items.

Emart is sequentially introducing other ultra-low price small appliances, such as a hair dryer (4,980 won), a body fat scale (4,980 won), a corded vacuum cleaner (9,980 won), and an egg steamer (9,980 won). Buyer Moon said, "We reference overseas exhibitions, global commerce sites, and manufacturer proposals to gather new product ideas," and added, "If Emart has so far been strong in groceries, I now hope to help build a reputation as a place where customers can confidently buy home appliances as well."

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