Beyond Sseuk Day, the First Day of the Year... New Year's Ultra-Low Price Battle: Emart and Lotte Mart 'Win-Win'

January 1st Ultra-Low Price Event with No Space to Step
Emart Sees Customer and Sales Growth Surpassing 'SSG Day'
Lotte Mart's 'Tongkeunjeol' Sales Up 51% Year-on-Year
Mom Cafes Respond Positively... 1+1 Diapers and More Sold Out

[Asia Economy Reporter Cha Min-young] On January 1st, the first day of the Year of the Rat, Emart's 'Chotan Day' and Lotte Mart's 'Tongkeunjeol' went head-to-head, resulting in a significant increase in customer traffic. In particular, Emart achieved higher customer turnout and strong performance, surpassing last November's 'SSG Day' event.

According to industry sources on the 3rd, Emart announced that on Chotan Day, January 1st, the number of customers and sales increased by 43.1% and 78.3% respectively compared to the same period last year. Chotan Day is a shortened term for 'Chojeoga Tansaengil,' meaning 'Ultra-Low Price Birth Day.' Notably, it exceeded the customer and sales growth rates of 38% and 71% recorded on last year's SSG Day event (November 2nd), which was jointly held by Shinsegae Group affiliates, marking a significant achievement.

By product category, the cost-effective (price-to-performance) home appliance series led the sales growth. Sales of home appliances, including Emart's private brand (PB) product 'Electroman 49-inch UHD TV,' increased by 145.9%. In addition to TVs, rice cookers, air purifiers, and premium air fryers were offered at special low prices. Fresh foods such as bananas, apples, Alchan eggs, and Jeju silver hairtail, as well as processed foods and daily necessities like diapers and infant formula, also saw sales increases of 70.9% and 98.7% respectively compared to the previous year.

Lotte Mart's Tongkeunjeol also enjoyed a high customer turnout effect. The number of purchasing customers and sales increased by 51.6% and 42.7% respectively compared to the same period last year. Tongkeunjeol inherits the meaning of the 'Tongkeun Chicken' event introduced 10 years ago. Tongkeun Chicken gained attention as an affordable food option that improved accessibility for ordinary people who found it difficult to buy expensive franchise chicken.

At Lotte Mart, MS (Meal Solution) products including Tongkeun Chicken recorded a sales growth rate of 80.7%. Tongkeun Chicken was offered in a 1+1 promotion at a limited quantity for 5,000 won, boasting an affordable price of about 2,500 won per chicken. Pork sales increased by 140.4%, and fruits such as tangerines and strawberries also showed a growth rate of 49.2%.

The reason large marts launched an ultra-low price war from the beginning of the new year reflects the offline industry's sense of crisis due to underperformance compared to online channels this year. This was a year in which Coupang and Market Kurly stood out with 'Rocket Delivery' and 'Dawn Delivery.' As consumers shifted from offline to online, the three major large marts took a direct hit to their performance. Korea's number one Emart recorded its first-ever quarterly loss in the second quarter of this year. Although it rebounded in the third quarter thanks to events like SSG Day last November, the outlook for next year remains uncertain.

In fact, on the day of the event, online communities popular among housewives were filled with purchase reviews of affordable diapers and infant formula. On a mom cafe in Changwon, comments such as "The line extended from the parking lot entrance, it felt like all the people of Changwon came," and "I went to the event because baby diapers were on a 1+1 sale, but they were already sold out," were posted. On a mom cafe in Ulsan, a review stated, "There were so many people at Emart's Chotan Day. I usually hesitated because of the high prices, but I bought items on the one-plus sale without hesitation."

A Lotte Mart official said, "The ultra-low price event held on January 1st, the first day of the new year, is also a declaration of our intention to provide customers with competitively priced products throughout the year," adding, "We expect that this will gradually increase visits to offline stores by customers who mainly use online channels."