South Korean convenience chain GS25 building on Netflix collaboration to pursue new cross-industry partnerships
GS25 is operated by GS Retail, which is owned by GS Group, one of the country’s largest conglomerates.
In recent times, the convenience store chain has actively pursued inter-sector partnerships.
Particularly, its collaboration with Netflix has led to the launch of 33 crossover products, with 11.57m units sold in the past year. As of June 2024, the cumulative sales of these products have exceeded KRW35bn (USD26m).
“GS25 and Netflix have presented a successful model for cross-industry partnerships with a high level of collaboration to create content-based products, and subsequently turn these products into content again,” said Lee Jeong-pyo, head of GS Retail’s O4O division.
GS25 cited product planning centered on consumers’ Netflix viewing patterns and category selection based on user purchase data as key to the success of this collaboration.
The line-up included Netflix-branded products like Netflix Combo Popcorn, Netflix Squid Fries, and Netflix Potato Chips, as well as products linked to popular Korean series streaming on the platform, such as Squid Game Dalgona, Physical 100 Chicken Breast, DP Schnell Chicken, and Chicken Nugget Chicken Gangjeong.
Specifically, Netflix Combo Popcorn comes in a large 400g pack that was inspired by the binge-watching tendency of Netflix users.
According to GS25, it has been a “huge hit” and steady seller, recording KRW10bn (USD7.5m) in sales to date. The product was ranked first in sales among 400 types of convenience store snacks in July this year.
“It was also effective to analyse the purchase data of consumers in their 20s to 40s, who are our main target audience, and to approach them with the product categories that they buy the most from. Seventy percent of the total sales of collaborative products come from beer, snacks, and side dishes.”
The company intends to expand the offerings to include more snacks, ice cream, and convenient foods like sandwiches and gimbap (rice roll).
“With blockbuster series such as Squid Game Season 2 scheduled to be released in the second half of the year, we plan to introduce special collaborative products and marketing to provide an even more fun user experience.”
Greater accessibility to rest stop foods
In July, GS25 signed an agreement with Korea Expressway Corporation (KEC), the company responsible for constructing and managing expressways throughout the country, to improve the brand value of highway rest stop foods.
There are more than 200 rest stops in South Korea, which have become an attraction for both local and foreign tourists due to the myriad food offerings.
Through the agreement, the two companies will work together to make it possible for popular foods at famous and frequently visited rest stops, to be easily enjoyed anywhere in the country.
This move will see GS25 strengthening its “One Meal Revolution” strategy, which was initiated with the goal of providing new food options beyond existing stereotypical convenience store products, so consumers can have simple but better-quality meals.
At the same time, KEC anticipates more widespread publicity of rest stop foods nationwide, and hopes to further encourage visitors to dine at the rest stops.
The products to be developed and launched at GS25 convenience stores will be selected from a list of “representative foods of rest stops” announced by KEC every year.
The items currently under review are jjageuli (stew) and Yongdae-ri dried pollack hangover soup, which are popular foods at Gokseong Service Area (Suncheon direction) and Yeoju Service Area (Gangneung direction) respectively.
The products will capitalise on jjageuli’s rich and spicy seasoning, and dried pollack hangover soup’s refreshing broth, with GS25 planning to roll them out as early as by Q3 this year.
Additionally, the firm looks to cater to the taste preferences of people in their 20s and 30s — the main consumers of convenience stores — by involving “MD Supporters”, a group made up of sales managers born in the 1990s.
“There are more than 400m users of rest stops annually, which means that most consumers, regardless of gender or age, have memories of these rest stops.
“Convenience stores and rest stops are very similar in that they are places that provide rest and pleasure, so we will continue to introduce delicious convenience foods that evoke people’s memories through the collaboration,” explained Heo Chi-hong, director of the MD division at GS Retail.
