(News in Focus) Searching for a marketable “snack” in Korea

The convenience store chain’s Seoul gift box includes yakgua biscuits and jangyeong sweet rice puffs (BGF RETAIL)

Paper or handmade masks may first come to mind when thinking of traditional Korean souvenirs, but the latest fad has added some traditional and ancient snacks to the list – It was closed Cookies and com.ganjeong Rice puffs.

While these snacks may have been considered less attractive in the past, smart retailers are now improving their packaging, flavors and overall appeal, turning them into must-buy items for tourists.

Korean department store chain CU, which has the largest number of stores nationwide, unveiled the “Seoul Gwaja (Seoul Gift Box)” in cooperation with the Seoul Tourism Organization this month.

Seoul Gwaja features traditional Korean snacks like yakghwa buns and ganjeong sweet rice. Yakgwa, a traditional Korean snack, has recently enjoyed a resurgence in popularity, especially among the younger generation, leading to the rise of halmaennial bubble. The word is a portmanteau of the word Halmaymeaning grandmother, and millennial, suggesting that young people have acquired an older taste.

The introduction of this snack has been well received not only among locals but also among international visitors looking for authentic flavors – with sales made using international payment methods such as UnionPay and WeChat Pay rising by 336 percent during the June-August period, compared to the previous three months. .

To further meet the needs of foreign visitors, Seoul Gwaja gave the snacks a moist and soft texture instead of being overly crunchy, according to the companies. The limited supply of Seoul Gwaja has been placed in 58 stores located around major tourist centres, including airports, train stations and shopping areas such as Myeongdong.

Looking to the future, Seoul Tourism Organization plans to expand its offerings based on sales trends. This includes offering gift sets that include various sauces, such as the popular hot sauce Pitfalls Sauces, packaged in tubes, and kits containing fruit preserves, incl Yoga, Or citron, jam.

Lotte Department Store and the Korea Tourism Organization also collaborated to launch a collection of regional specialties that include a total of eight food-related tourism souvenirs from Gyeonggi to Jeju Island. Among the souvenirs are kimchips, or kimchi chips, from Namyangju in Gyeonggi and red plum wine from Yeongcheon in North Gyeongsang.

Newly launched food souvenirs at Lotte Department Store include Kim Chips from Namyangju and Gyeonggi, red plum wine from Yeongcheon in North Gyeongsang and caramelized sweet potatoes from Busan. (lottie store)

In search of Korea’s representative snack

Korea is seeing a surge in foreign tourists post-pandemic, yet the lack of the perfect souvenirs to buy before travelers return home puts it behind its neighbors with their unique offerings – Tokyo Banana in Japan, Kaya Jam in Singapore, Pineapple Cakes in Taiwan, and Pineapple Cakes in Hong Kong. Jenny Cookies.

Recent data from the Korea Tourism Organization revealed that in September alone, the number of foreign visitors reached 1.09 million, representing an increase of 225.2% compared to the same period last year.

“Despite Korea’s growing importance as a travel destination and foreigners’ increasing fondness and curiosity for Korean cuisine, there appears to be a relative lack of efforts to turn food into purchasable and marketable souvenirs,” said Lee Hoon, a professor at the Graduate School. School of International Tourism at Hanyang University.

“In the case of Japan, the revitalization of domestic tourism has long led to the creation of region-specific products that are only available in certain areas,” Lee said. “It is essential for Korea to market and market the distinct foods of each region, thus enhancing the appeal associated with each city and region.”

Solo tourists boost sales

Recently, there has been a marked increase in the number of foreign visitors opting for individual travel experiences rather than traditional group tours with fixed itineraries. This transformation has created a favorable environment for retail trade, especially in department stores and convenience stores.

“The shift from organized group tours with set itineraries to individually tailored travel experiences has led to a more liberal approach to shopping among foreign visitors,” said a CU spokesperson.

“Convenience stores, in particular, have seen an increase in foreign customers, as the shopping list concept in these stores has gained popularity and interest.”

During a “Seoul Gift Box” launch event in Myeongdong, central Seoul, on November 1, CU reported a flash sale with all available stock selling out in just over an hour as a crowd of local and international consumers flocked to the event. (BGF Retail)

An examination of year-on-year growth rates for CU’s international payment transactions revealed a 40.1 percent decline in 2020 when the country was hit by the COVID-19 wave, a trend that continued with a 32.9 percent decline in 2021. This occurred in 2022, with a rise by 37.5 percent, and continues this year with an increase of 134.8 percent until October.

The main branch of Lotte department store located in the popular tourist area of ​​Myeongdong also reported impressive growth in sales to foreign tourists, rising by nearly 370 percent in the January-September period compared to the previous year. This increase, coupled with the 80% recovery in 2019 compared to pre-Covid-19 levels, underscores the resilience of the retail sector amid the pandemic.

International guests flock in, local shoppers retreat

In stark contrast, the situation is completely different in the local market. Domestic department stores such as Lotte, Shinsegae and Hyundai faced a decline in sales in the third quarter. Moreover, despite weathering the difficult waves of the pandemic, the convenience store sector has also seen a slowdown in its growth.

Facing a slowdown in the domestic market, the retail industry is focusing on creating distinctive products, including souvenirs, to attract a greater number of foreign tourists.

“While each region has the potential to create exceptional foods, transforming these products into marketable souvenirs requires expertise from established companies or support at the government level,” Professor Lee said. “If leading companies or the government support the creation of souvenirs with unique characteristics and appeal, this could lead to the birth of attractive niche items.”

Written by Seo Ji-eun (seo.jieun1@joongang.co.kr)