Expected to Achieve Target Sales of 120 Billion KRW and Cumulative Sales of 6.1 Billion Units... Record High
Winter Snacks Soar Despite Abundance of Snacks... Quality Efforts and Marketing as Driving Forces
[Asia Economy Reporter Lee Seon-ae] Hobbang, a white steamed bun sold in winter with a diameter of 10 cm, a height of 5 cm, and a weight of 90 g. This winter, the nation's top snack is still Hobbang. From steaming in the street vendor’s steamer during childhood to now occupying a corner in convenience stores, Hobbang is on the verge of reaching a cumulative sales volume of 6.1 billion units this winter season (6 billion units until 2020). The records set so far are astonishing. Over half a century, more than 100 million units have been sold annually on average, which means that based on South Korea’s population, more than 2.5 Hobbangs have been eaten every winter season each year. Considering the six-month sales period during the year, 7.6 Hobbangs are sold every second (based on 120 million units sold in six months).
Hobbang, Cumulative Sales of 6.1 Billion Units
According to SPC Group on the 17th, sales of Samlip Hobbang are rapidly increasing. Sales in December alone rose 15% compared to the previous year, marking a record-breaking growth rate. The cumulative growth rate from October to December, the peak sales season for Hobbang, reached 11%. It is expected that by February to March, when winter ends, the target sales of 120 billion KRW and cumulative sales of 6.1 billion units will be achieved. Last winter season also set a record with target sales of 110 billion KRW and cumulative sales of 6 billion units.
Hobbang, named as a shortened form of "hot bread you blow on before eating," is a product that fully benefits from the winter cold wave demand. However, industry experts say that the records set by Hobbang so far are remarkable and cannot be simply explained by the "economics of weather." Especially considering the recent economic downturn and declining consumption trends, the growth is surprising. Unlike the past when Hobbang was considered a premium bread during times when food options were limited, it is exceptional that Hobbang continues to sell like hotcakes even now when there are numerous types of bread and alternative snacks available.
Hobbang was launched in October 1971 as the "first domestic winter bread." At that time, heating was poor in winter, and bread on the shelves of SPC Samlip’s distributors often froze. SPC Samlip and its distributors had to suffer from poor sales in winter. The late Heo Chang-seong, Honorary Chairman of SPC Group, believed that creating a winter bread would help overcome the sales slump and introduced Hobbang after research and development. The response was explosive. Even though it was sold only during a limited period from mid-October, when the cold season begins, to February of the following year, it accounted for 15% of SPC Samlip’s annual sales at the time.
Continuous New Product Development
Heo Young-in, SPC Group Chairman and son of the late Honorary Chairman Heo, has brought various changes to Hobbang. Based on the traditional steady sellers such as red bean and vegetable Hobbang, new products reflecting current trends are introduced every year. New products using new ingredients such as pizza, sweet potato, spicy chicken, milk, burger, and golden egg Hobbang are launched annually. Since 2016, the quality of Hobbang has been enhanced by applying a domestically developed "native yeast." As a result, Hobbang is consumed not only by middle-aged consumers buying nostalgia but also by younger generations. The sales proportion of new Hobbang products reflecting trends has steadily increased from 10-20% (new product sales rate among all Hobbang) until 2016 to 30% last year.
The diversified new products hit the mark again this winter. New products maximizing spicy flavors, such as "Ssen Buldak Hobbang" filled with spicy chicken ingredients and "Ssen Szechuan Jjajang Hobbang" with spicy Szechuan black bean sauce, attracted a young customer base. Additionally, collaboration products targeting young consumers, such as "Minions Banana Hobbang" and "Hershey’s Choco Hobbang," gained great popularity with over 5,000 related posts on social media (SNS).
Marketing and Channel-Specific Customized Product Strategies
One of the driving forces behind this year’s record-breaking sales is diverse marketing. The popularity of "Hojjimi," a merchandise item, led to growth in online sales. The Hobbang mini steamer "Hojjimi" and Hobbang sets were launched on "KakaoTalk Gift" in early October, and the prepared quantity of about 20,000 units sold out in about an hour. Through the publisher "Urban Books," SPC Samlip published the "Samlip Hobbang Brand Book (Hobbang Book: The Archive)," which contains warm stories about Hobbang’s history, value, and people, focusing on marketing that approaches consumers in a familiar way.
Channel-specific customized product strategies also contributed to growth. In 2018, SPC Samlip launched "Manjindubbang" exclusively for warehouse-type stores such as Emart Traders. In 2019, Hobbang with witty product names targeting young consumers who frequently visit convenience stores was introduced. Targeting the delivery market and online channels in line with lifestyle changes also drove growth. The collaboration product "ㅎㅎ Hobbang" with Baedal Minjok (a food delivery service) received a good response as it matched delivery culture trends. The "Samlip Hobbang Special Edition," which includes a mini humidifier and Samlip Hobbang, sold out within an hour of its release on KakaoTalk Gift and online shopping malls.
An SPC Samlip official said, "We plan to carry out various promotions and marketing campaigns," adding, "We will continue to strive not only to achieve the highest-ever performance but also to make Samlip Hobbang a truly beloved national brand for everyone."
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