Gift Sets Released One After Another in the Distribution Industry
Most Prices Higher Than Last Year
"Rising Raw Material, Logistics, and Labor Costs"
[Asia Economy Reporter Song Seung-yoon] With the Chuseok holiday just ten days away, the prices of Chuseok gift sets have also risen due to the impact of increased raw material and logistics costs that have continued since the beginning of this year.
According to the industry on the 26th, Sajo introduced about 100 types of gift sets this Chuseok. For example, the ‘Anshim Special Set No. 7’ is priced at 135,000 KRW per set, up 19,000 KRW from 116,000 KRW a year ago. The ‘Sajo Tuna Set No. 1,’ consisting of eight cans of lean tuna (150g) and four cans of lean plus tuna (150g), rose by 5,000 KRW to 45,000 KRW from 40,000 KRW a year ago. The ‘Sajo Premium Tuna Set No. 1,’ which includes 1.6kg of bluefin tuna otoro, fresh wasabi, two sashimi sauces, and two each of pickled radish and red ginger, increased by 50,000 KRW from 200,000 KRW to 250,000 KRW.
Lotte Confectionery launched about 70 types of Chuseok gift sets this year, including eco-friendly sets. The ‘Lospam Korean Pork and Hanwoo Set No. 1’ rose by 6,000 KRW to 123,000 KRW, and the ‘Uiseong Garlic Lospam Set No. 1’ increased by 28,000 KRW to 169,000 KRW.
CJ CheilJedang’s ‘CJ Best Choice Premium Set’ also rose by 14,000 KRW to 99,000 KRW based on Emart sales prices compared to 85,000 KRW a year ago. The ‘Spam Combo Set No. 2,’ consisting of six cans of Spam Classic (200g) and three bottles of canola oil (500ml), also increased by 9,000 KRW to 49,900 KRW.
Dongwon’s tuna gift set ‘Jin Set’ is priced at 138,000 KRW per set, up 15,000 KRW, and Daesang’s ‘Cheongjeongwon Set No. 13’ rose by 4,000 KRW to 53,000 KRW. Most gift set prices have increased by 10 to 12%.
However, these gift set prices differ significantly from actual purchase prices. Almost no gift sets are sold at the initially set prices, and actual purchase prices can be two to three times different due to varying discount rates applied across distribution channels. This has been a long-standing practice in the food and beverage industry. Nevertheless, considering this, the initial price increase means that applying similar discount rates results in higher actual prices compared to the previous year.
An industry insider said, "Since the prices of most products included in gift sets have risen, the gift sets themselves inevitably have to increase in price. Despite efforts to reduce costs, most companies had no choice but to raise prices due to rising raw material costs, logistics expenses, and labor costs."
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