Itaewon Tragedy 1st Anniversary Memorial, Halloween Marketing Restraint
Increase in Related Goods Releases and Promotions Targeting November 11
Christmas Included as a Turning Point for Year-End Sales Boost
The domestic distribution industry has rolled up its sleeves to capitalize on the marketing boom ahead of 'Pepero Day' on the 11th of next month. Alongside Halloween and Christmas, it is a symbolic event of the autumn season that can attract consumer interest in the second half of the year. This year, with the somber atmosphere commemorating the first anniversary of the Itaewon tragedy and a restrained Halloween promotion, Pepero Day is expected to become one of the few major sales opportunities. Lotte Wellfood, the manufacturer, has set a plan to expand consumer contact marketing domestically and internationally and boost sales to maintain Pepero's popularity, which aims for annual sales exceeding 200 billion KRW from a single product. Distribution channels such as convenience stores are also seeking to increase sales through goods and related events incorporating Pepero during this period.
"A Festival with NewJeans and the World"
According to industry sources on the 24th, Lotte Wellfood is conducting a global integrated campaign every year on November 11th with the ambition to promote K-food worldwide through Pepero. The campaign, which started in 2020, is now in its fourth year and is conducting global marketing in a total of 17 countries including the Philippines, Hong Kong, Taiwan, and Kazakhstan, together with the official product ambassadors, the popular girl group NewJeans. Video content featuring NewJeans will be used in these countries, and edition products featuring the members' images on the packaging will be introduced. The slogan of the Pepero global integrated campaign is 'Say Hello with PEPERO.' A Lotte Wellfood official explained, "It conveys the message of sharing warm empathy by offering Pepero, which can share feelings more than ten words in various everyday situations."
Domestically, a new promotion is the Pepero pop-up store 'Hello Pepero World,' which opened on the 16th at Lotte Premium Outlet Time Villas in Uiwang-si, Gyeonggi-do. Until the 29th, visitors can check out and experience various exhibits and products using NewJeans and Pepero's characters, 'Pepero Friends.' Here, visitors can take commemorative photos with various sculptures shaped like Pepero Friends and see a Pepero special edition featuring NewJeans' images, as well as various goods such as keyrings, hairpins, T-shirts, eco-bags, postcards, and stickers using Pepero.
Distribution channels have also launched Pepero Day marketing. Convenience stores near homes, schools, and workplaces have focused their efforts on preparing Pepero Day-specialized products that are popular yet rare among the Zappa generation (Gen Z + Alpha generation). They have prepared various category goods including stationery, fashion, and living items featuring popular characters, making these goods themselves a kind of 'gift set.'
CU's IPX (formerly Line Friends) 'Minini' is a representative example. Minini, collaborating with CU, emphasizes the small and cute appearances of characters such as 'Conini,' 'Lenini,' and 'Bunini,' which are a rabbit, frog, and bear respectively. With a fluffy drawing style expressing unique cuteness, it targets the 'fangirling' tastes of Gen Z. About 40 differentiated products tailored for Pepero Day will also be introduced through collaborations with various characters and brands such as 'Daengnyangi,' 'Space Dust,' and 'Tongue-tied Angkko.' To attract consumer interest and increase participation, a 'Pepero Day Glove Raffle' event is held in partnership with the fashion platform Musinsa. It is an event where gloves containing a barcode for a 1.11 million KRW CU gift certificate can be purchased randomly for 1,111 KRW.
GS25 has placed the famous American animation character 'Powerpuff Girls' at the center of its Pepero Day event. The Powerpuff Girls recently appeared in album covers and music videos in collaboration with NewJeans. Seven Eleven will release differentiated products in collaboration with 'Sanrio Characters,' which remain very popular among the Zappa generation. To create an event atmosphere, event zones will be set up in stores from the end of this month, with product displays and discount events. Additionally, Emart24 plans to launch Pepero special products using the popular Kakao Friends character 'Chunsik.'
Cumulative Sales of 2 Trillion KRW and Annual Sales of 200 Billion KRW as a Milestone
Lotte Wellfood's achievement of a double 'mega brand' status (annual sales exceeding 100 billion KRW) with a single product depends on this year's Pepero Day performance. Since its launch in 1983, Pepero entered the mega brand ranks in 2019 by achieving annual domestic sales of 100 billion KRW and has maintained a steady upward trend even after COVID-19. Last year, it earned 144 billion KRW domestically and 48 billion KRW from exports, achieving combined annual sales of 192 billion KRW.
The company expects this year's sales to exceed 200 billion KRW for the first time, with about 150 billion KRW domestically and 52 billion KRW from exports. The cumulative sales are also likely to surpass 2 trillion KRW this year, the 40th anniversary of its launch. It is estimated to have earned 1.9 trillion KRW until last year. The autumn-winter season (September to November), when Pepero Day falls, accounts for nearly 40% of annual sales, so special efforts are made for promotions during this period.
The convenience store industry is also putting all its efforts into expanding product sales in line with Pepero Day in the second half of this year. Since 'Halloween,' a key marketing keyword for the autumn season, became a sensitive topic after last year's Itaewon tragedy, Pepero Day has become a more important event that will determine the performance of convenience stores in the second half. Moreover, the convenience store industry's third-quarter performance this year is also believed to have fallen short of market expectations, making the success of Pepero Day even more critical. According to the financial investment industry, the same-store sales growth rate of the entire convenience store industry is estimated to have been around 1-2%. A convenience store industry official said, "We think about how to attract consumer attention for Pepero Day all year round," and predicted, "This year, competition for hit differentiated products will be fierce."
Other distribution sectors that have not planned separate promotions are also closely monitoring consumer trends around Pepero Day. They see it as a milestone to judge whether consumption sentiment, weakened by high prices, will revive. An industry official said, "After Pepero Day, the college scholastic ability test ends, and there is just over a month until Christmas, making it an important period for the distribution industry to wrap up the year's business well," adding, "Promotions and related product launches targeting this period will accelerate."
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