November Sales Account for About Half of Annual Total
High Sales Areas Are Academy Districts and Office Zones
Pepero Export Volume Increasing Annually
Lotte Confectionery Strengthens Overseas Marketing
[Asia Economy Reporters Lim Chun-han and Koo Eun-mo] As November 11 approaches this year, Pepero has begun to dominate the distribution market. Although it has long been criticized as a baseless event and a marketing ploy, it has now firmly established itself as an important commemorative day alongside Valentine's Day and Christmas. This year, due to the Itaewon tragedy, large-scale marketing is not being conducted, but event displays are quietly being set up.
◆An Important Commemorative Day Surpassing Valentine's Day
According to major marts and convenience stores on the 7th, Pepero sales in November account for a significant portion of annual sales. At E-Mart, Pepero sales in November last year accounted for 36% of annual sales. During the same period, Lotte Mart recorded 45%, and Homeplus 40%. Convenience stores showed similar trends. CU accounted for 40% of annual sales, GS25 52.2%, 7-Eleven 45%, and E-Mart24 41%. This means that about half of all Pepero sold throughout the year are sold during the month of November.
At convenience stores, Pepero purchasing patterns varied depending on location. According to GS25, high sales areas were academy districts and office districts, while areas with high per-person purchase amounts were office districts and areas near subway stations. Gift sets sold well in residential and entertainment districts, while individual Pepero sticks sold more in office and academy districts. The sales ratio between men and women was 58% and 42%, respectively. By age group, sales proportions were 21% for teenagers, 29% for people in their 20s, 27% for those in their 30s, 16% for those in their 40s, and 7% for those aged 50 and above.
The origin of Pepero Day is most likely from the 1980s among female middle school students in the Yeongnam region, where exchanging Pepero sticks symbolized the wish to become slim like Pepero. At that time, the trend spread from Yeongnam to neighboring regions and was even reported by the media, which helped start the craze. Later, Lotte Confectionery actively used Pepero Day for marketing from the late 1990s, evolving it into a nationwide event. In fact, cumulative Pepero sales from 1983 to 1995 amounted to about 163 billion KRW. However, sales over the 25 years from 1996 to last year exceeded approximately 1.6 trillion KRW. As a result, Pepero Day has been criticized as merely a marketing strategy created by confectionery companies.
There is also analysis that Pepero Day has surpassed Valentine's Day and White Day. While Valentine's and White Day often involve gifting luxury or expensive accessories instead of chocolates or candies, Pepero Day is considered a day that both men and women can easily celebrate. According to a survey conducted by the marriage information company Gayeon last year on 500 unmarried men and women aged 25 to 39 through Open Survey, the most important commemorative days were birthdays, first meeting anniversaries, Christmas, Pepero Day, and then Valentine's/White Day, in that order.
At the end of last year, a clerk and a customer are taking a commemorative photo in front of the Pepero Day display at the CU Centerpoint store in Malaysia. (Photo by BGF Retail)
◆Pepero Spreading Overseas
Pepero Day is expanding beyond Korea to become a global festival. Pepero is exported to more than 50 countries worldwide, including the Middle East, Southeast Asia, and the United States, establishing itself as a cultural phenomenon among overseas MZ generations (Millennials + Generation Z). The rising interest in Korean culture fueled by the global popularity of BTS, Squid Game, and other K-pop and K-content has also played a significant role.
According to Lotte Confectionery, Pepero export amounts have increased annually: 20 million USD in 2013, 30 million USD in 2014, 40 million USD in 2015, and 50 million USD last year. Pepero Day was introduced in a U.S. elementary school reference book (READING FOR THE GIFTED STUDENT) in 2010. Last year, students at the Massachusetts Institute of Technology (MIT) held Pepero Day events on campus, and the British major retailer Tesco registered Pepero as an official brand.
Lotte Confectionery continues to strengthen its overseas marketing. Last year, as Pepero Day's recognition increased in China, they produced and sold products with EXO-K group photos printed on the packaging. This year, Pepero Day marketing campaigns are being conducted in Kazakhstan, Taiwan, the Philippines, and Singapore. In Mongolia, sales outlets such as CU and GS25 are running events where customers who purchase Pepero can enter a raffle to win prizes.
A Lotte Confectionery official said, “Pepero export amounts are increasing every year. Interest in Pepero Day is expected to grow worldwide, and overseas market performance will gain even more momentum.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
