Jeonggwanjang 'Jeongmol', 50x Increase in Members in 6 Years
Chorokmaeul, hy, and Pulmuone Also See Significant User Growth
Service Enhancements Including Same-Day Delivery and Discount Promotions
As high inflation continues, a rational consumption culture that values 'cost-effectiveness (performance relative to price)' is spreading. In the food industry, companies are increasing touchpoints with consumers through online malls operated directly by the companies. Businesses can expect the effect of attracting many customers more easily and quickly than offline, and from the consumer's perspective, they can purchase high-quality products with various benefits, leading to a clear increase in the number of users and purchase volume.
According to the industry on the 6th, KGC Ginseng Corporation's red ginseng brand 'Jeonggwanjang' operates the online mall 'Jeonggwanjang Mall,' which has expanded its membership from 20,000 at its launch in 2017 to 1.05 million currently, growing more than 50 times. Sales, which were 3.3 billion KRW in the first year, have also grown more than tenfold as of last year. Above all, the company views positively that the 20s and 30s age group accounts for 53% of the total members, indicating high loyalty among young customers.
Jeongmall positions itself as a health functional food specialty mall, selling 4,000 products related to 'Health and Beauty (H&B).' Not only Jeonggwanjang but also domestic and international companies' health foods, cosmetics, and agricultural and livestock products are available. There are also private brand (PB) products and items offered exclusively online. By expanding consumer choices and regularly conducting product discount promotions, it has quickly established itself in the market with differentiated benefits from offline stores.
‘Chorokmaeul,’ which handles eco-friendly organic products, is also showing results through its online mall. As of last month, the number of active users of the Chorokmaeul application (app) increased by 22% compared to July. Active users refer to those who accessed the app and performed specific activities such as searching. The number of users who purchased products there also increased by 29% during the same period. Chorokmaeul, which holds the industry’s top position with about 380 stores nationwide, has received a good response since introducing ‘dawn delivery’ and ‘same-day delivery’ services linked with its offline infrastructure earlier this year.
In addition, hy and Pulmuone are also achieving results through their own online malls. Analyzing 4.7 million recent purchase data from hy’s online mall ‘Predit,’ the number of new subscription contracts increased by 50.2% year-on-year, and the number of paid ‘Predit Membership’ subscribers exceeded 40,000 in October this year from about 6,000 in January last year. Pulmuone’s integrated online shopping mall ‘#(Shop)Pulmuone,’ which combines company brands such as Pulmuone Foods, Orga Whole Foods, Pulmuone Green Juice, and Pulmuone Danone, has seen sales increase by 68% over about two years since its launch in August 2021. The number of new members who joined this platform in the past year increased by 120,000 compared to the same period last year, reaching a cumulative 280,000 members, and the repurchase rate during the same period was recorded at an average of 37% per month.
Hy Platform Operations Team Leader Kwak Gi-min said, "Due to the recent high inflation, food consumption trends are returning to ‘cost-effectiveness,’" adding, "We plan to continue providing various services so that more consumers can enjoy differentiated benefits."
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