Korean consumers hot for jumbo-size food items
Office worker Kim Soo-hyun’s favorite place to go for lunch has long been convenience stores because of rising market prices coupled with a monthly income not high enough to enjoy restaurants. He chooses franchise convenience stores where there are a variety of options to choose from at affordable prices compared to restaurants. With convenience stores bustling with customers during lunchtime these days, he had to move swiftly to secure his items before the shelves were stripped bare.
Lately, Kim has discovered more reasons to continue with the lowcost option. Some new products are now available in jumbo sizes previously unseen, offering the most competitive prices in the market. There are large-sized cup noodles, and snacks and coffee in substantial quantities, all priced affordably without imposing a significant financial strain.
“Having to use convenience stores almost every day nowadays felt kind of sad at first, as I used to freely dine in restaurants before prices went up,” Kim said. “But these new products that come in satisfactorily large sizes and varieties relieved me from worrying over what to eat. Besides, it’s kind of fun trying these new products.”
Convenience stores and other retailers with competitive prices in the country are betting on big-size food products to attract more customers amid soaring inflation and prolonged high interest rates. For consumers mindful of their daily expenditures, these jumbo products are offering a welcome relief.
The rising trend is not just helping consumers get through the financially challenging time. It’s also proving advantageous for food producers, driving up profits, as noted by BGF Retail, operator of one of the nation’s largest convenience franchises, CU.
“Many convenience stores are releasing jumbo-sized packaged food products of various types because they not only help consumers save money amid high market prices, but also as the companies’ upselling strategy to raise base prices and increase franchisees’ sales,” a company official said. “This largesize trend will continue for a while as we’ll use our key products to meet more consumers’ needs.”
On Sunday, CU released a lineup of 200 gram jumbo-sized Giant Hot Dogs. Compared to already-available hot dogs that have been available, which are 80 grams on average, the new ones, each containing a 130 gram sausage, are more than double the total weight.
The brand also recently unveiled another giant-size product, triangular rice wrapped in seaweed, four times bigger than the conventional one. Last year, it launched “getAmericano,” a watered-down espresso in a 520 milliliter cup, similar to Starbucks’ venti size, for 1,700 won ($1.30). These products are part of the company’s strategy to “go big” which began in 2014. As of February, the products’ accumulative sales reached 80 million in number.
GS25, another major Korean convenience store franchise run by GS Retail, bet on instant noodles. Following the first product that put eight noodle bricks in one package becoming a blockbuster hit nationwide last year and having sold 1.7 million so far, the brand has introduced two other types of the same size. Altogether, they have sold over 2.7 million units.
Traders Wholesale Club, a wholesale brand by Shinsegae Group’s E-Mart, saw rising sales of meat products at prices lower than market average by up to 15 percent. Their sales in January and February saw a 52 percent year-on-year increase.