[Jihye Choi's Trend 2023] "Local Brands" Thrive as Neighborhoods Become Hip

Last year, the popular drama "My Liberation Notes" featured a line: "Do you know what people say about Gyeonggi Province? They say Gyeonggi is like the egg white. The egg white surrounding Seoul. Even if I say I live in Sanpo-si, no one knows where Sanpo-si is attached. Whether I take Line 1 or Line 4."

As someone who has lived in Gyeonggi Province all my life, I was moved by the writer's precise expression. That's right. I was born and raised in Gyeonggi Province. Back when all the famous hot places were in Seoul, and trends circulated there before disappearing, I could only find franchises famous in Seoul in my neighborhood much later. I always wondered when I could live near a hot place. I think I always longed for the life of a Seoulite.

However, recently, a change in this trend has been observed. While Seoul's status as a trendsetter remains, small alleyway shops, brands based on local communities, unique goods created by regional creators, and rural lifestyles difficult to experience in the city are gaining word-of-mouth popularity, attracting hipsters. The local-oriented trend of consuming unique local sensibilities is observable through big data. According to an analysis by Shinhan Card Big Data Research Institute of new franchise store names from 2019 to the first quarter of 2022, the number of stores with regional names such as "Busan," "Daegu," "Jeonju," and "Incheon" has increased. Conversely, the ranking of new franchise stores with "Seoul" in their names has declined. The revival of local areas is significant.

The most prominent phenomenon is the success of local brands. Especially notable are F&B brands utilizing regional agricultural products. A representative example is the potato bread from the agricultural corporation "Bat," based in Gangwon Province. In 2022 alone, 700,000 people visited "Cafe Gamjabat" located in Gangwon-do. Sinbuk-eup in Chuncheon-si, where it was once hard to find even a chicken restaurant, has become a hot place. "Dancing Cider," which has been releasing various cider products since 2018, is also a representative local brand. Cider refers to a fruit wine with an alcohol content of 4-7% made by fermenting apple juice, and Apple Cider especially uses apples harvested in the Chungju area of Chungcheongbuk-do. The drink itself is unique, but it is even more famous for its stylish packaging.

Furthermore, unique local sensibilities are being expanded into brands. Daegu streetwear select shop EPLC is a prime example. The "Daegu T-shirt," released to commemorate the shop's first anniversary, sells out every year. What is the secret to its sell-out success? The design or color of the T-shirts is not particularly special. The strategy of producing T-shirts in different colors each year or selling them in limited quantities at the beginning of the year stimulates collectors' desire. The detailed touch of including Daegu's area code "053" also catches the eye.

The popularity of grocery store concepts is also closely connected to neighborhoods. The term "grocery store" is increasingly cited when discussing recent shopping trends. In the West, it refers to retail stores selling food products such as agricultural and marine products, processed goods, and daily necessities?in other words, supermarkets. Supermarkets, which had been overshadowed by large marts, are being reborn by emphasizing community-based services. "Eunhasu Store," a grocery store located in Yongho-dong, Nam-gu, Busan, offers a grilling service that cooks meat and fish for free. This service, inspired by concerns about ventilation and the disappearance of fish smells in apartments, is popular among local residents. "Rolo wa Yeongdo Grocery," located in Yeongdo-gu, Busan, aims to be more than just a place selling good products; it strives to be a space for communication with neighborhood people. The monthly "Rolo wa Potluck Party" is an open gathering without restrictions on participants or themes, where people share food and freely talk. This is an example of a supermarket expanding into a local community space.

The preference for local also changes travel trends. According to the travel platform Triple, nationwide accommodation bookings in June 2022 increased by 241% compared to the same period in 2021. Interestingly, excluding popular travel destinations like Gangwon and Jeju, accommodation bookings in cities and counties of Yeongnam, Honam, and Chungcheong regions (excluding metropolitan cities) increased by 408%. This indicates a trend of seeking relatively lesser-known domestic travel spots. It reflects a travel trend where people want to find unique places only they know and influence others through social networking services (SNS).

As the value of local areas is reappraised, regional collaboration products are increasing. For example, CU introduced more than 20 types of convenience foods using local agricultural specialties in 2022, recently launching various convenience foods using Jindo green onions. Ottogi launched the Jeju-specialized brand "Jeju Dameum," introducing "Jeju Gamgyul Dough Pizza," made with dough containing Jeju tangerine pickles.

Neighborhoods are becoming hip. For consumers seeking unique and rare experiences, local areas represent a "limited edition experience." In other words, the uniqueness of our neighborhood can be an attraction that draws people. We support the pioneering spirit of creators who discover local charms and expand them into brands. The revival of localism, which instills pride in the region, is welcome.

Choi Ji-hye, Research Fellow, Consumer Trend Analysis Center, Seoul National University