In South Korea, the rise in food prices has led to an increase in demand for ultra-low-cost products, specifically those priced under 1000 won. This surge in demand has prompted convenience stores to grow their range of super-value items.
On the 30th of July, the famous convenience store chain, 7-Eleven, introduced two new coffee products to its line: “Seven Select Black Coffee” and “Seven Select Cafe Latte.” Retailing at only 900 won each, these offerings are approximately 36% cheaper than the average market price of 1400 won for similar items. The black coffee offers a clean, Americano-style flavor, while the cafe latte provides a lightly sweet taste and aroma that appeals to a wide range of customers.
This addition to 7-Eleven’s product line follows the mid-July release of “Seven Select Venti Coffee” in 600ml PET bottles. Available in black and hazelnut varieties, these beverages retail at 1800 won, making them 33% less expensive than typical 500ml bottled coffees. These products experienced a 70% increase in sales from July 18 to 25, compared to the preceding month, indicating robust consumer interest in large volume, low-cost options.
According to 7-Eleven, reflecting the wider economic pressures, sales of all differentiated products priced under 1000 won increased by 30% from July 1 to 25 compared to the same period the previous month.
CU, another popular convenience store chain, has also responded to the ultra-value trend. In preparation for Korea’s traditional midsummer days, CU introduced two affordable traditional chicken dishes to its private-label “Duktem” series. These are the “Samgyetang Chicken Breast,” priced at 1900 won, and the “Samgyetang Whole Chicken Leg,” available for 3500 won.
Easily prepared in a microwave in under two minutes, these dishes offer a cost-effective alternative to Samgyetang. This traditional Korean chicken soup, generally considered a restorative dish, has become increasingly expensive. Data from Korea Price Information shows the cost of making Samgyetang at home has risen to 9000 won per serving, while dining out costs an average of 17,654 won, a 4.6% increase from the previous year.
Large retailers, such as Emart, Homeplus, and Lotte Mart, have also recognized this trend and begun offering aggressive promotions on fresh poultry and ready-to-eat health foods. For instance, Emart offered two antibiotic-free young chickens for 3580 won with a member card, while Homeplus sold first-grade whole chickens for 3650 won each with bulk purchases.
As consumer spending power declines and economic uncertainty persists, ultra-affordable, high-value products are fast becoming a key strategy for retailers. The aim is to attract cost-conscious shoppers looking for reasonably priced alternatives to expensive meals and beverages.
What effect is the rise in food prices having in South Korea?
South Koreans are increasingly seeking ultra-low-cost products. This demand has prompted convenience stores to expand their range of super-value items.
How have 7-Eleven and CU responded to this demand?
7-Eleven has introduced affordable coffee products, while CU has released cost-effective traditional chicken dishes to cater to this growing demand.
What is the overall retail strategy in response to these economic pressures?
Retailers, recognizing the need for affordable options amid declining consumer spending power and economic uncertainty, are focusing on providing ultra-affordable, high-value products to attract cost-conscious shoppers.
