Prices Up This Year Reflecting Last Year's Demand
One Side Moves to Target Value-Seeking Consumers
Christmas cakes, which see increased demand at the end of the year, are showing a 'polarization' phenomenon again this year. As prolonged high inflation reduces real consumer spending power, many people are looking for cost-effective cakes, but hotel cakes, known as 'small luxury,' have raised their prices even further, reflecting last year's demand.
According to the industry on the 2nd, The Shilla Seoul Hotel is selling a season-limited "The Taste of Luxury" cake made with winter truffles and French dessert wine Ch?teau d'Yquem for 300,000 KRW. Last year, the most expensive cake offered by The Shilla Hotel was the 250,000 KRW Alluring Winter, which, along with the White Tree Special Cake from Chosun Palace, was among the highest-priced cakes among major luxury hotels. Besides these two cakes, The Shilla Seoul Hotel is also selling season-limited White Holiday (150,000 KRW) and Melting Delights (130,000 KRW) cakes.
The Westin Chosun Seoul, operated by Chosun Hotel & Resort, is presenting four types of Christmas cakes: J Santa Cake, Cozy Christmas, Magical Forest, and Bright White Tree. Among these, the most expensive Bright White Tree features 280 sugar craft leaf decorations and was produced in a limited quantity of 30, priced at 280,000 KRW.
Paradise City introduced four types of Christmas cakes, including the signature Strawberry Tree, Sweet Opalis, Madagascar Vanilla Cake, and Cookie House. The cheapest cake is the Madagascar Vanilla Cake at 75,000 KRW, while the most expensive is the Cookie House at 180,000 KRW. The price of the Strawberry Tree rose by 18.3% from 93,000 KRW last year to 110,000 KRW this year.
Lotte Hotel Christmas cake created with the concept of 'Christmas in a Fairy Tale.' [Photo by Lotte Hotel & Resort]
Lotte Hotel Seoul and World are selling Bear House, X-mas House, and Noel cakes priced between 75,000 KRW and 150,000 KRW. Among these, Bear House was priced at 150,000 KRW, a 25% increase from last year due to rising raw material costs and design upgrades. The most expensive cake among those offered by hotels under Lotte Hotel & Resort is the Christmas Ornament Box from Signiel Seoul, priced at 210,000 KRW.
On the other hand, there are also moves targeting cost-conscious consumers who want to enjoy the Christmas spirit at relatively affordable prices. Convenience store Emart24 is selling five types of Chosun Hotel cakes, including Red Velvet, Black Choco, Brownie, Tiramisu cakes, and Stollen. Prices range from 27,000 KRW to 43,000 KRW. Emart24 is also selling Beckers A Nuvo's Rare Fromage Cake for 21,000 KRW.
GS25 collaborated with Maeil Dairy to release limited edition whole cakes (Salty Milk and Choco Ganache Cake) priced at 29,500 KRW. Seven Eleven is mainly offering Sanrio Characters design cakes priced under 10,000 KRW. Additionally, Homeplus is accepting pre-orders for Christmas cakes priced between 10,000 KRW and 20,000 KRW for its membership customers.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
