”Daiso's standard”... Supermarkets and convenience stores also follow the ”1,000 won order” (Korea)

"One block of tofu costs 980 won, one triangle kimbap costs 990 won." The price tags in the distribution industry are extraordinary. "Is it possible to do it at this price?"
Ultra-low-priced products are appearing one after another. Major supermarkets and convenience stores are all embarking on the "1,000 won marketing" campaign, and the ultra-low-price war to attract price-sensitive consumers is in full swing.
Some analysts say that Daiso, which is considered a prime example of the "cheap and high-volume" strategy, is leading this trend.
According to the industry on the 25th, E-Mart and E-Mart Everyday
The new ultra-low-priced private brand (PB) "5K Price" that was unveiled at the event has been achieving results beyond expectations, with sales of up to 160,000 units per item in the first month since its release.
It is a super low-priced line of daily necessities with all products priced under 5,000 won. It has reduced prices to the maximum extent possible through small-scale packaging, direct procurement, and integrated purchasing. The entire distribution structure is based on a low-margin, high-volume sales model.
During this period, 160,000 units of "Delicious Tofu (980 won)" were sold in one month, and over 130,000 units of "Bean Sprouts (980 won)" were sold.
Other popular items include frozen thinly sliced pork shoulder (4,980 won), and shelled quail eggs (4,980 won).
Sales of the entire tofu category at E-Mart increased by 20% compared to the previous month. With numerous bestsellers in a short period of time, E-Mart plans to expand the 5K price range to over 250 items during the second half of the year.
Lotte Mart is also accelerating its price destruction strategy. The "World Buffet" series of its private brand "Cooking" offers a total of 40 types of Western, Japanese, and Chinese cuisine for 3,000 yen.
The menu is priced at a flat rate of around 4,000 won. Menu items that require high labor costs are delivered in a semi-processed form that can be easily cooked in-store, reducing costs. A Lotte Mart official said, "The prices are fixed.
"Because it's so low, it has become a 'cash cow' that attracts customers to the store," he explained. The convenience store industry is also moving quickly to expand its low-price line. CU is selling "under 1,000 won" products.
The year-on-year sales growth rate of the company reached 29.8% last year, the highest in the past three years.
The strengthening of the pricing strategy has been successful. This series is more than half the price of the manufacturer's (NB) products. A CU official said, "We have made great efforts to purchase raw materials in bulk, and to improve the pre-processing and automation.
"We are lowering the unit price through our facilities," he said, explaining, "This is a plan to meet the needs of price-sensitive consumers." GS25 also has a 1,000-yen shop, focusing on its private brand "Real Price."
Recently, they launched two 1,000 won snacks (Twist and Chocolate Corn) and three 1,500 won snacks (Butter Peanuts, etc.).
The Real Price product group has increased from about 10 types last year to 40 types this year, and sales increased 6.9 times compared to the previous year from January to August this year. A GS Retail official said, "Based on customer satisfaction,
The reason why major distribution channels have started to follow the '1,000 won rule' all at once is that flat-rate shops
Daiso has maintained a six-tiered price system of 500 won, 1000 won, 1500 won, 2000 won, 3000 won, and 5000 won.
Customers can predict the price range and are accustomed to "affordable prices" that are easy to afford. This simple pricing structure reduces consumer fatigue and serves as a key mechanism for encouraging repeat purchases.
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