'9,990 Won Chicken' Revival?... Intense Ultra-Low Price Marketing at Large Marts Amid High Inflation

Expected Inflation Rate at 4.7%, a Record High
Franchise Chicken Prices Rising Daily with 'No Chicken' Posters
Ultra-Low Price Product Marketing from Chicken to Fruits, Processed Foods, and Daily Necessities

As we enter the era of "30,000 won chicken," affordable chicken from large supermarkets is gaining popularity. The photo is not directly related. [Image source=Pixabay]

[Asia Economy Reporter Kim Jeong-wan] Amid the era of '30,000 won chicken prices' following successive price hikes in franchise chicken, the distribution industry is continuing its competition in 'lowest price and ultra-low price marketing' targeting the high inflation economy. Some large supermarkets are expanding their ultra-low price product lines, promoting offers such as '2 chickens for 9,990 won.'

Homeplus announced that it will hold discount events for the summer vacation season from July 28 to August 17, including a special membership offer of 'two fried chickens' for 9,990 won. This is an extension of the ultra-low price marketing that began in the first half of the year, aimed at addressing the recent intensified high inflation. Homeplus has already been selling its private brand 'Dangdang Chicken' at 6,990 won per chicken (fried) since June 30. As of the 27th, 'Dangdang Chicken' is reported to have sold 228,381 chickens.

In the distribution industry, this has been referred to as the return of Lotte Mart's 'Tongkeun Chicken.' Tongkeun Chicken was a private brand (PB) chicken sold by Lotte Mart for one week in December 2010 but was discontinued following criticism from the franchise industry accusing the conglomerate of infringing on local businesses.

On the 25th, when vegetable and fruit prices were rising due to the heatwave and monsoon, citizens were shopping at a large supermarket in downtown Seoul. Photo by Mun Ho-nam munonam@

According to the 'July 2022 Consumer Sentiment Survey Results' released by the Bank of Korea on the 27th, the expected inflation rate, which indicates the consumer price inflation forecast for the next year, rose by 0.8 percentage points from the previous month to 4.7%. This is the highest level since related statistics began in July 2008. The 'price perception,' which reflects the perceived inflation rate over the past year, also recorded 5.1%.

The popularity of these large supermarkets' chicken is also attributed to the rise in franchise chicken prices. On the 18th, an online community posted a poster titled 'Boycott Franchise Chicken.' The poster parodied the 2019 Japanese product boycott movement 'No Japan' and expressed a refusal to buy franchise chicken. The poster included phrases such as "We do not order. We do not eat," and "In the era of 30,000 won chicken prices, consumers have the right to choose." The post quickly garnered 200,000 views and over 300 comments.

'No Chicken' poster appeared on an online community. Photo by Online Community Capture

As ultra-low price marketing gains traction, large supermarkets are competitively launching ultra-affordable products. Homeplus's ultra-low price brand 'Price Stability 365,' which has been sold since February, continues to see increasing sales. Homeplus's private brand product 'Homeplus Signature Domestic Soybeans (300g x 2, 3,280 won)' recorded about a 126% increase in sales compared to the same period last year until the 17th of this month, ranking first in total sales among Homeplus tofu products. Homeplus has expanded the product line from the initial 12 items to 29 and plans further expansion.

Lotte Mart, operating a 'Price Stability Task Force,' has launched 'Ugly Fruits' as 'Win-Win Fruits,' offering them up to 30% cheaper than market prices. Since January, sales of Ugly Fruits have increased by more than 180% compared to the same period last year.

Emart announced on the 4th that it will implement the 'End of Price' project, maintaining the lowest prices daily by checking competitors' prices for 40 essential items, including 17 processed foods, 7 fresh foods, and 16 daily necessities.