"Don't Wander Around"… Specialized Store Taking Care of 'Siseongbi'

Store Gathering a Single Product Category Becomes a 'Sales Hero'
"Because Customers Can Compare and Purchase Product Categories in One Place," Analysis

Recently, the distribution industry has been fiercely competing not only in prices and products but also in differentiating store spaces.

Specialized stores like 'Ramen Museum' and 'Whiskey Library' gain popularity... Space differentiation competition 'heats up'

A view of Ramen Museum, Homeplus's ramen specialty store. [Image source=Homeplus]

According to the distribution industry on the 12th, Homeplus, which is renovating its stores into 'Mega Food Markets' focused on food, opened its first Ramen Museum at the Banghak branch in Dobong-gu, Seoul, in June last year.

It is the 'largest ramen specialty store in Korea' with about 360 types of ramen, including more than 70 imported varieties.

Currently operated in 11 Mega Food Markets, it quickly became a so-called 'ramen sanctuary' attracting not only ramen enthusiasts but also general customers as soon as it opened.

By gathering all ramen sold domestically and rare imported ramen in one place to enhance shopping convenience, and combining the price competitiveness of large supermarkets, sales have significantly increased.

Since the opening of the Ramen Museum at each store, sales have increased by an average of 34% compared to the same period before. Some stores saw ramen sales increase by up to 88%.

In addition, Homeplus has introduced specialized stores this year, such as the 'Whiskey Library,' a liquor-focused space; the 'Mixology Zone,' reflecting the trend of mixing drinks and alcohol; and 'Better Choice,' focusing on healthy foods like natural snacks and powdered meals, receiving positive responses.

The Whiskey Library, equipped with about 380 types of whiskey, saw sales increase by an average of 65% this year compared to last year. The Mixology Zone and Better Choice also showed growth rates of 145% and 50%, respectively.

Other large supermarkets are also leveraging their extensive facility infrastructure to create specialized stores. Lotte Mart currently operates the vegan food specialty store 'Zero Meat Zone' and the 'Gourmet Street Zone,' which features dining menus in collaboration with famous restaurants or chefs. Emart runs an integrated health food store and the liquor specialty store 'Wine & Liqueur.'

Among these, the 'Zero Meat Zone,' launched in 2021, has received explosive responses, with sales increasing eightfold in two years, coinciding with the social atmosphere prioritizing health after COVID-19.

Not only large supermarkets but convenience stores also join... Purchasing specialized products leads to buying other items

CU Hongdae Sangsang Store, a convenience store specializing in ramen located in Mapo-gu, Seoul. This convenience store offers 105 varieties of popular domestic and international bagged ramen, about three times more than a typical convenience store. Including over 120 types of cup ramen, it stocks a total of 225 ramen varieties. It also features three instant ramen cookers where customers can cook ramen themselves, as well as standing tasting counters.
[Image source=Yonhap News]

Convenience stores, which quickly respond to changes in young consumers' trends, have also entered the specialized store competition.

CU opened the convenience store industry's first ramen specialty store near Hongik University in Mapo-gu, Seoul, on the 4th of this month. The space layout, with an entire wall dedicated to ramen shelves, caught attention.

Since opening, the average daily ramen sales have been about 500 units, more than 10 times higher than typical convenience stores.

It is also notable that sales of bagged ramen account for 70%, instead of cup ramen, which is the most in-demand ramen product category in convenience stores. This preference for bagged ramen is attributed to customers being able to cook ramen themselves using the ramen cooker installed in the store.

Additionally, 80% of customers who purchased ramen also bought other products, leading to an overall increase in store sales.

Thanks to the rising overseas recognition of K-ramen, it is analyzed that word of mouth spread quickly among foreign tourists. During evening hours, foreigners account for about 70% of all customers.

'No longer wasting time looking for cost-effective products'... Maximizing customer convenience to boost sales

The distribution industry also analyzes that the popularity of these large specialized zones is due to the arrival of an era of 'time-performance ratio' (performance relative to time) beyond just cost-effectiveness (performance relative to price).

The interpretation is that customers find it attractive to purchase desired products at reasonable prices in one place without wasting time searching for cost-effective products.