Surging Cabbage Prices Fuel Kimchi Demand, GS Shop Broadcast Sells Out in 5 Minutes

GS Shop Experiences Early Sell-Outs of Packaged Kimchi on Every Broadcast

Since October, GS Shop has been experiencing early sell-outs of its packaged kimchi broadcasts within just 5 minutes. They prepare 5,000 to 7,000 sets of packaged kimchi for each broadcast, but due to high demand, they sell out quickly every time. In one October broadcast, orders peaked at 1,500 per minute within the first minute, leading to an immediate sell-out. In another broadcast on the 4th, the show ended before the shopping host could even touch the kimchi.

Peak Season for Packaged Kimchi and the Impact of Cabbage Prices

The peak season for packaged kimchi typically runs from August to November. Demand increases from August, when kimchi made for the winter starts to run out, until November, the start of kimchi-making season. About half of the annual sales are concentrated during this period. This year, however, cabbage prices have risen, sharply increasing the demand for packaged kimchi. This is the reason behind the consistent early sell-outs.

Early Sell-Outs Due to Soaring Demand

GS Shop is trying to solve the sell-out problem by including other kimchi varieties, such as radish kimchi, in its broadcasts. However, this is insufficient to meet the demand for Napa cabbage kimchi. While cabbage prices are expected to stabilize by the end of October, significantly increasing the supply of packaged kimchi in a short time is difficult, so sell-outs are expected to continue for some time. The high demand is evident in the "broadcast alarm" service on the GS Shop mobile app, which notifies users of specific product broadcasts; 40,000 to 50,000 people have signed up for alerts for the premium Napa cabbage kimchi broadcast. Even after the broadcast ends, around 5,000 requests for kimchi restocking are received, a number similar to the amount prepared for each broadcast.

Increased Packaged Kimchi Sales and Efforts to Secure Inventory

Ryu Jae-eun, MD of GS Shop's Food Team, said, "We are preparing 1.5 to 2 times the usual amount for broadcasts, but even company employees are finding it hard to buy packaged kimchi; it's become so competitive that people are calling it 'ticket scalping'." She added, "We will do our best to secure enough inventory so that as many people as possible can buy kimchi." Packaged kimchi sales have steadily increased over the past five years, excluding the cabbage price surge in 2022. Sales grew by 5.3% in 2020, 10.3% in 2021, and 18.6% in 2023. As of the third quarter of this year, sales have increased by approximately 4.8% year-on-year.

Upcoming Broadcast Schedule

GS Shop's final packaged kimchi broadcast in October is scheduled for 5:35 PM on October 31st. Early sell-outs are expected for this broadcast as well, so customers wishing to purchase kimchi should be prepared for the broadcast time.