PROSPECTS AND OPPORTUNITIES
Continued growth expected for discounters, although from a low base
Discounters in South Korea is expected to see solid current value growth throughout the forecast period, with outlet numbers also expected to return to growth as consumers look for the cheapest option for purchasing groceries due to concerns about their budget in a difficult economic climate. However, the channel will remain small within overall grocery retailers, still accounting for less than 1% of overall value sales of grocery retailers at the end of the forecast period in 2029.
Warehouse clubs likely to hamper growth for discounters
Preventing stronger growth for discounters is likely to be rising competition from another value for money channel, warehouse clubs. As consumer spending contracts due to the economic downturn, warehouse clubs is set to expand its influence in the retail market.
E-Mart set to expand No Brand stand-alone stores
E-Mart recently opened new in-store shop-in-shop locations dedicated exclusively to selling No Brand products. However, as prolonged high inflation and the rise in single-person households have led to its improved performance, the retailer is now planning to expand stand-alone No Brand stores to strengthen its competitiveness, thus driving growth in outlet numbers.
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Overview:
Understand the latest market trends and future growth opportunities for the Discounters industry in South Korea with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Discounters industry in South Korea, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Discounters in South Korea report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Discounters in South Korea?
- Which are the leading retailers in Discounters in South Korea?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How has the impact of COVID-19 and national lockdown impacted consumer demand?
- Which formats have benefited the most from stockpiling and enforced home seclusion?
- How will the wider economic impact of COVID-19 shape the retail landscape in the future?
- Where is future growth expected to be most dynamic?
Discounters in South Korea - Category analysis
KEY DATA FINDINGS
Value growth for discounters in 2024, despite falling outlet numbers
Discounters remains a niche channel in South Korea
No Brand’s dominance of discounters
Continued growth expected for discounters, although from a low base
Warehouse clubs likely to hamper growth for discounters
E-Mart set to expand No Brand stand-alone stores
Retail in South Korea - Industry Overview
Retail in 2024: The big picture
Competition for fast delivery in South Korea
Convenience stores are evolving into lifestyle platforms
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
Summer Sale
Black Friday/Korea Sale Festa
DISCLAIMER
Discounters
Discounters are chained retail outlets typically with a selling space of between 400 and 2,500 square metres. Stores have a primary focus on selling a limited range of foods, beverages, tobacco and non-groceries at budget prices, regularly via private label. Discounters can be classified as hard discounters and soft discounters. Hard discounters, first introduced by Aldi in Germany, are also known as limited-line discounters. Stores are typically 400-900 square metres and stock fewer than 1,000 product lines, largely in packaged groceries. Product range available is predominantly made up of private-label brands. Soft discounters are usually slightly larger than hard discounters, and are also known as extended-range discounters. Stores typically stock 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Example brands include Aldi, Lidl, and Dia.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Discounters research and analysis database.
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