South Korean hypermarkets expand 'always 980 won' private brand items to lure shoppers amid inflation

South Korean hypermarkets are intensifying their focus on ultra-low-priced private brand products, with many items now consistently selling for less than 1,000 won ($0.72). This strategy aims to capture shoppers struggling with prolonged high inflation.

Retailers are moving away from relying solely on temporary sales events. Instead, they are increasingly expanding their selection of consistently affordable goods. Lotte Mart and Lotte Super, for example, recently launched revised versions of their PB products like tofu and bean sprouts at 980 won, increasing the quantity while lowering the price from previous offerings.

Lotte Mart has significantly boosted its under-1,000-won PB offerings, doubling the number of such items to 90 as of June this year, up from 45 in April 2024. Initially focused on fresh ingredients and snacks, the retailer is now extending this low-price strategy to household goods. This expansion is driven by growing consumer demand for value, with sales of these budget items showing a steady increase.

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We set the target price first and then select product specifications and manufacturers accordingly, while also reducing our own profit margins.