“Sales figures show that consumers are willing to spend on healthy food items, even if they cost a little more,” said an official from the retailer in the Korean Joonang Daily.
“There is a growing demand for premium products, consumers care more about quality than price even in Private Brand items.”
The Prime L Gold brand will introduce three items on Thursday at Lotte Mart stores nationwide. One of the products is a 750-milliliter (0.20-gallon) bottle of high-quality milk from a farm in Pyeongchang, Gangwon. Only 1,000 bottles will be for sale per day at a cost of 4,500 won ($4.32) each – more than double the price of milk sold under Lotte Mart’s own label.
The Prime L Gold brand will include a loaf of sliced bread (2,000 won) baked with local honey and fresh cream and butter and a fabric softener for 8,900 won with plans to release 20 more items.
“As a mid- and long-term strategy, what’s needed for large discount stores to enhance competitiveness is to develop PB items that differentiate them from their rivals,” said Nam Chang-hee, head of products at Lotte Mart. “We plan to increase sales of premium Private Brands so that it accounts for at least 10 percent of total sales from PBs this year.”