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The difference that was revealed by both wine managers from E-Mart & Lotte Mart

The Original News Article, written in Korean

 

  • The difference that was revealed by both wine managers from E-Mart & Lotte Mart – Rivals in Distribution Business will be explained in the following article.
  • Wine sales increased by 61.7% at Lotte Mart and 62.2% at E-Mart from Jan to May this year.
  • The low-priced wine – Real Fuente, Dos Ccopas, G7, 1865, etc. are leading the wine sales.
  • Lotte Mart, unifies and runs all the stores the same as in tourist destinations.
  • E-Mart, has overwhelming supply and price competitiveness, surpassing 10% of MS.

 

Registration 2021-06-03 5:30 AM

Edaily Yoon Jung-hoon

 

Last year, domestic wine imports reached an all-time high. The aftermath of the increase in the number of home drinkers due to Corona 19 is significant. The growing atmosphere of drinking wine in the MZ generation also contributed to the growth of the wine market. Lotte Mart and E-Mart   renewed their biggest sales by expanding their line-up such as “cost-effectiveness” (quality-to-price) wine. Thus, we compared wine sales and concepts of Lotte Mart and E-Mart, which are as hot as recent baseball matches.

on the 2nd of June, According to Lotte Mart and E-Mart, sales of wine from January to May this year increased by 61.7% compared to the same period last year, also 62.2% during the same period.

Lotte Mart sold the best wine in terms of cumulative sales from last year to last month, △ the 1st place is Real Fuente, Semi-Sweet wine △ the 2nd place is Real Puente, Dry one △ the 3rd place is 1865, Cabernet Sauvignon.

Lee Young-eun, head of Lotte Mart’s liquor team said, “The two types of Real Fuente, which started selling from June last year. The cost is ₩3,900 ($5NZD) per bottle, which is cheaper than Soju(₩4,000 at restaurant), so they contributed to popularization and broke prejudices that wine is dear.” The team leader Lee is the first wine expert who has received a wine knighthood, Commanderie De Bordeaux.

The best-selling wine of E-Mart from last year to last month was △ No. 1 is Dos Sopas △ No. 2 is G7 △ No. 3 is 1865.

Myung Yong-jin, the E-Mart Wine Buyer said, “Dos Copas and G7 are low-cost wines, and they became popular by word of mouth with high cost-effectiveness (Quality compared to price). 1865 is a medium-priced product that appeals to customers in various kinds and flavours.”

 

In order to differentiate itself from department stores or competitive marts, Lotte Mart has a standard model based on all stores and operates in the form of direct purchase. At the same time, it has staff with expertise to help customers sellect wines that suit their tastes easily. They run a special wine membership and provide customised benefits through their online shop, the Vin Vin Vin Club.

“Lotte Mart operates unified stores in all regions, although there are some small differences depending on the rating and region of each store,” the team leader Lee said. “Compared to its competitors, especially in Jeju Island and other tourist spots, you can see that various wines are there.”

E-Mart has advantages in overwhelming supplies and price competitiveness. E-Mart wine stalls in the Seoul metropolitan area are larger than other companies. In the past, they sold wine from Shinsegae L&B Wine, a former subsidiary company, but now it has expanded its range significantly.

“E-Mart has more than 10% of the domestic wine market share,” the buyer Myung said. “The wine Market” in E-Mart is the biggest wine event that is popular among people regardless of age or sex.

Recently, the proportion of medium-priced wines in the wine market has been increasing. This is the result of “warin” (wine + children) putting wine costs between ₩30,000~ ₩50,000 in a shopping cart in addition to low-priced wine that costs less than ₩10,000. As a result, large supermarkets are also expanding their mid-priced wine line-up.

“Compared to the past, when there were many customers looking for low-priced wines worth ₩10,000, the demand for wines worth ₩30,000 to ₩50,000 has increased since last year. Lotte Mart plans to expand the amount of midrange wines from 15% to 26% of total wines, so that they can achieve an equal distribution of stock across the different price ranges.,” said.

“Wine Beginner was concentrated in sweet Italian Moscow, Chile’s red wine, but recently, New Zealand’s Sauvignon Blanc and France’s LANGUEDOC red wine have been strengthened,” Lee said. “I think it’s the impact of new wine Beginners in their 20s who are not afraid of trying new things”

The same phenomenon is also seen at E-Mart. “The demand for brand wines worth between ₩20,000 and ₩50,000 has been increasing since last year, including famous cost-effective wines,” the E-Mart wine buyer said. “Customers who have tasted low-priced wines are moving to medium-priced wines.”

To properly purchase wine from both companies at reasonable prices, you can use the discount event which is held twice a year in the first and second half of the year. Lotte Mart opens its wine market in April and October, and E-Mart opens its wine market in May and October. The Lotte mart team leader Lee said, “There are differences in prices by time, so it will be helpful to note that there are differences in the event product prices.”

-Translated by KNZBC