South Korean Grocer Lotte Mart Launches Prime L Gold

Lotte Mart PrimeThis week South Korean retailer Lotte Mart announced that it is launching a new premium Private Brand called Prime L Gold.

“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.”

 



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Christopher Durham

Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan).

Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s.
Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago.

Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.