Attracting Attention with Untact Trend and Funding Sales Method
Startups and Small Farms Can Achieve Win-Win Situation
[Asia Economy Reporter Choi Sunghye] The food and dining industry is drawing attention by partnering with startups and small-scale farms to sell new products through funding. Until now, funding sites have seen active participation mainly from fashion and lifestyle product companies, but as competition in the food and dining sector intensifies and contactless consumption trends spread, related companies are seeking new sales methods that can capture consumers' interest. Collaboration with small farms and startups, enabling mutual growth, is also increasing corporate participation rates.
According to funding site Wadiz on the 20th, the food conglomerate that has generated the hottest response is Ottogi. Ottogi recently partnered with startup Baekbandesign to run a goods funding project. This promotion collaboration was launched to secure publicity in celebration of the 50th anniversary of Ottogi Soup's launch. As of 3 p.m. that day, consumer participation was so active that it ranked 4th among popular fundings. The target amount was 1.5 million KRW, but it achieved 4,893% of the goal within one day of starting funding on the 15th, and by the 20th, it reached 88,453,000 KRW, fulfilling 5,896% of the target amount.
An Ottogi representative explained, "We started this project thinking that the 'Table for Eating Alone' previously created by Baekbandesign would be a good collaboration goods item for Ottogi Soup's 50th anniversary."
This goods set was designed to reflect the historical fact that Ottogi's 'Santa Soup,' launched in 1970, was Korea's first soup, by maximizing the feel of the original packaging. It includes one table, one pot stand, one set of cup coasters, one set of magnets, and two powdered soups, sold at a regular price of 65,000 KRW but discounted by 47% to 35,000 KRW. Since the project is successful if it reaches over 100%, production will begin on the 17th after funding closes on the 12th of next month, and shipping will start on the 30th.
Hyundai Green Food sold stick-type honey products and Shine Muscat grapes through the crowdfunding platform Wadiz in July and earlier this month (from the 4th to the 16th), respectively. Both products exceeded their funding goals and succeeded in funding, with Shine Muscat achieving 45,132,600 KRW in funding, reaching 9,026% of its target.
A Hyundai Green Food representative said, "We conducted sales by securing new sales channels that make it easier to promote the advantages of unique products produced by small business owners, rather than standardized products," adding, "From the perspective of small business owners, it is well received as it allows them to secure new sales channels that can generate additional revenue." The stick-type honey product is made in collaboration with Mr. Kim Gonghwa, a beekeeper in Uljin, Gyeongsangbuk-do, and the Shine Muscat product is a collaboration with Mr. Jang Jaeseon, the Grape Doctor of Gyeongsan.
Some dining companies are launching and selling their own brand RMR (Ready Meal Restaurant) products through funding. A representative of Whale Gamjatang, a gamjatang brand operated by dining company Didim, said, "Because it is conducted through funding, it can increase publicity, and there is also a viral effect through reviews from purchasers, so we expect greater promotional effects."
Meanwhile, interest in funding among food companies is growing. Korea Yakult signed a strategic MOU with Wadiz last month for startup growth support and joint marketing using the platform. Kim Byungjin, CEO of Korea Yakult, said, "Through this agreement, we plan to lead mutual growth through cooperation between the two companies, including attracting millennial customers and securing new sales channels," adding, "Korea Yakult will continue to serve as a growth bridge that opens distribution channels for startup venture companies."
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