Race to the bottom heats up as retailers lure shoppers with ultra-low prices

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Race to the bottom heats up as retailers lure shoppers with ultra-low prices

Published: 18 Sep. 2025, 11:44 Updated: 18 Sep. 2025, 20:39

Audio report: written by reporters, read by AI

A list of items bought by the reporter from ″ultra-low price″ product lines [LIM SUN-YOUNG]

It's a race to the bottom — from 5,000 won ($4) hair dryers to 1,000 won Americanos, the “ultra-low price” war is heating up among offline retailers as the economic downturn fuels frugal consumption, and bargain products are emerging as a core strategy across the retail industry.

Competition over ultra-low prices is especially spreading across hypermarkets, convenience stores and household goods chains.

A test of the price wars resulted in quite a haul for less than 10,000 won in total: a hair dryer from Daiso at 5,000 won, a four-pack of ramyeon from Emart’s budget line “5K Price” at 2,980 won, a hot Americano at GS25 for 1,000 won and two samgak gimbap (triangular rice rolls) from Emart24 at 450 won each, for a total of 9,880 won. The prices were 20 to 80 percent cheaper than comparable items.

Convenience store chains, sensitive to consumer trends, are racing to roll out private-label products at rock-bottom prices. CU has expanded its “990 Series” of snacks and milk to include nine types of vegetables such as onions and scallions. GS25 launched its “1,000 won snack” line on Monday and is strengthening its “Real Price” product range. Emart24 is offering two samgak gimbap for the price of one throughout September.

Hypermarkets are also diversifying their bargain offerings to highlight value for money. Emart last month launched its “5K Price” line, selling food and household goods for under 5,000 won. Lotte Mart offers deli items at flat prices of 3,990 won or 4,990 won. Household goods retailer Daiso recently introduced small home appliances such as vacuum cleaners and hair dryers at 5,000 won each.

A 990 won (70 cent) cereal bar released by CU [CU]

1,000-won snacks by GS25 [GS25]

Emart's ″5K Price″ bargain product line [EMART]

How can retailers profit at such prices? Companies are employing all available methods to cut costs.

“We secure price competitiveness by simplifying distribution channels through direct deals with manufacturers and suppliers at home and abroad, and by lowering supply prices through bulk purchases,” an industry source said.

CU cut vegetable costs by sourcing directly from producers with automated facilities. GS25 product managers worked with a cosmetics manufacturer to develop small packaging, making it possible to sell skin care pads for around 1,000 won. “Ultra-low prices naturally attract consumer attention, so less needs to be spent on marketing,” a GS25 representative said.

Emart set the price of its 250-milliliter extra virgin olive oil at 4,980 won through a bulk annual contract with a European supplier. “We directly import orange juice from Spain and source toilet paper and razors from global original equipment manufacturers to lower costs while maintaining quality,” an Emart spokesperson said.

Customers look at bargain sale products at Lotte Mart. [LOTTE MART]

Daiso, meanwhile, sources globally to keep costs down. “We bring in bamboo products from Vietnam, stainless steel items from India, plates from Brazil and ceramics and glassware from Turkey,” a Daiso source said.

The strategy is paying off. GS25 said sales of its private-label products priced at 1,000 won or less rose 236.9 percent in the first half of this year compared to the same period last year. Emart’s “Delicious Tofu,” priced at 980 won, sold 284,000 packs in just one month. “Some ultra-low price items are so popular that people line up before opening hours, making them effective in drawing customers,” a Lotte Mart representative said.

“Ultra-low price competition among companies is positive in that it continually uncovers new value-for-money products,” said Lee Hong-joo, a consumer economics professor at Sookmyung Women’s University. “Quality must remain high for repeat purchases to follow.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LIM SUN-YOUNG [[email protected]]