CU introduced 1-liter cartons of German UHT milk priced in the early 2,000 won range, about 35% cheaper than domestic brands. (Image courtesy of BGF Retail)
SEOUL, Jul. 8 (Korea Bizwire) – In response to rising inflation, South Korean convenience store chains are increasingly turning to direct sourcing of overseas products to offer affordable options to budget-conscious consumers.
According to industry reports, major convenience store chains including CU, GS25, 7-Eleven, and Emart24 are each introducing 20 to 50 directly sourced products annually. This strategy allows them to significantly reduce distribution costs and offer lower prices compared to traditional import channels.
CU, a pioneer in this approach, has introduced about 440 directly sourced products since 2017. These include popular items like Nougat crackers from Taiwan, Mogu Mogu juice from Thailand, and egg tarts from Portugal. The strategy has paid off, with CU’s sales of these products growing by 20.6% in 2022, 28.7% in 2023, and 13.2% in the first half of 2024.
Recently, CU introduced 1-liter cartons of German UHT milk priced in the early 2,000 won range, about 35% cheaper than domestic brands. Similarly, CU sold out its initial stock of 150,000 containers of Polish UHT milk introduced in January in just three weeks.
7-Eleven has taken a unique approach by leveraging its global network to introduce popular private brand products from its stores in other countries. (Image courtesy of Seven Eleven)
GS25 has also embraced this trend, sourcing from over 30 countries worldwide, with direct import sales reaching 50 billion won last year. Notably, products like Maltesers chocolate from the U.S. and Trolli gummy candies from Germany have each sold over 10 million units.
7-Eleven has taken a unique approach by leveraging its global network to introduce popular private brand products from its stores in other countries. Since October last year, the store has offered 36 products from five countries, with 2.5 million units of Japanese 7-Eleven’s Langue de Chat cookies sold.
Emart24 is also participating in this trend, offering directly sourced products like Sour Cream & Onion chips from Malaysia and Jack Link’s beef jerky from the U.S.
Ashley Song (ashley@koreabizwire.com)
