500 Won Snacks, 990 Won Instant Rice... Ultra-Low-Priced PB Products Take on Inflation

Rising Consumer Prices Amid Middle East Conflict

Hypermarkets and Convenience Stores Expand PB Lineups

Amid concerns that consumer sentiment may weaken due to high inflation and the impact of the ongoing war in the Middle East, retailers such as hypermarkets and convenience stores are expanding their private brand (PB) product lines and launching aggressive discount campaigns. By focusing on processed foods and daily necessities with ultra-low prices as their main concept, they are striving to maintain price competitiveness.

According to the industry on April 11, Lotte Mart is holding a large-scale discount event called the "PB Festa" until April 29, centered on its flagship private brands "Oneuljoeun" and "Yorihada." The event features an expanded lineup of PB products with outstanding value for money, particularly focusing on frequently purchased food items and daily necessities, thereby maximizing the practical discount benefits for customers.

Lotte Mart representatives are introducing the Private Brand (PB) Festa product line, a large-scale discount event centered around private brands. Provided by Lotte Mart

For example, the "Oneuljoeun Daily Milk (1L)" is being sold for 1,880 won. This means customers can purchase fresh milk at a price of 188 won per 100 mL, which is comparable to the price of imported sterilized milk. PB snacks such as "Oneuljoeun Potato & Onion Thin Crackers (75g each)" are priced at 500 won each, while beverages like "Oneuljoeun Green Apple & Grape Sparkling Zero" and "Oneuljoeun Peach Iced Tea Zero (500mL each)" are available for 780 won each. PB fish cakes, which are commonly used as side dishes, are priced at 1,000 won and 2,000 won, respectively.

Lotte Mart explained that with the prolonged war in the Middle East expected to slow the economy and increasing consumer concerns about rising prices for food and daily necessities, they organized this PB-focused event to help alleviate the burden on consumers.

According to the National Statistical Portal of the Ministry of Data and Statistics, the Consumer Price Index (2020=100) in March stood at 118.80, marking a 2.2% increase compared to the same month last year. In particular, the price increases were significant for major food staples such as grains (12.3%), livestock products (6.2%), and seafood (4.4%). Processed foods (1.6%) and dining out (2.8%) also continued to rise, reflecting an overall upward trend in grocery prices. As a result, the Consumer Composite Sentiment Index (CCSI) for March fell to 107.0, a 5.1-point drop from January's 112.1, indicating that consumer sentiment has cooled.

Convenience store chains, which emphasize cost-effectiveness and accessibility, have also expanded their PB lineups to help ease the financial burden on households. CU, operated by BGF Retail, has introduced a bundle product as part of its PB "Deuktem" series, allowing customers to purchase two types of instant rice—white rice and brown rice—at 1,200 to 1,500 won per pack when bought together. From April 21 to 30, CU will hold a "Stock Up Week" event, offering an 8-pack of Deuktem white rice for 7,900 won (990 won per pack) and an 8-pack of brown rice for 9,900 won (1,300 won per pack). In addition, CU is promoting processed meat products priced between 1,000 and 3,000 won per item, three types of dried snacks for 6,900 won, and sanitary products with a buy-one-get-one-free offer.

GS25, operated by GS Retail, launched its PB "Hyejaroun Dessert Series" at a uniform price of 1,500 won last month, and cumulative sales exceeded 1 million units in just over a month. The main products—the Hyejaroun Soboro Peanut Cream Bread and Hyejaroun Red Bean Cream Bread—are offered at the lowest price among similar items carried by GS25. Other large hypermarkets such as Emart and Homeplus are also offering 20% discounts on PB products, focusing on camping gear and food in anticipation of the spring outing season. Previously, Seon Yang Soju, a liquor company based in the Chungcheong region, released a special edition soju at the 20-year-old price of 990 won, limited to 9.9 million bottles exclusively for local supermarkets nationwide.

An industry official emphasized, "As cost pressures continue to rise and consumers become more price-sensitive, expanding PB product lines—which reduce consumer prices by cutting production and logistics costs—is no longer a choice but a necessity."

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