Following the government's distribution of fuel price support payments, consumer spending has increased, leading to a double-digit rise in sales at Jeonggwanjang franchise stores.
KGC reported on July 20 that sales at Jeonggwanjang franchise stores nationwide increased by 12% during the "Cheer Up, Korea" promotion held from June 11 to June 30 compared to the same period last year.
Regionally, the proportion of franchise stores with increased sales outside the capital area was 7 percentage points higher than in the capital area. Notably, sales growth was particularly strong in the Gyeongsang, Jeolla, and Chungcheong regions.
New customer acquisition also saw significant growth. During the promotion, sales from new customers rose by 23% compared to last year, outpacing the 13% increase in sales from existing customers. By age group, sales among customers in their 20s surged by 39%, while those in their 30s saw a 19% increase, indicating the largest growth among the 2030 demographic.
In terms of specific products, sales of "Vitality" experienced a remarkable 65% increase, marking the highest growth rate. Vitality is a convenient health drink made from six-year-old red ginseng extract combined with traditional ingredients like ginger, jujube, goji berries, and schizandra, along with vitamins B and C, appealing to younger consumers engaged in outdoor activities. Additionally, sales of the flagship product "Everytime" rose by 41%, and "Red Ginseng" sales increased by 33%.
This growth trend appears to be influenced by the government's fuel price support payments. Recently, the Ministry of SMEs and Startups analyzed that sales across the nation increased by 10.6% compared to the previous year following the distribution of these payments.
A KGC representative stated, "We believe that the increase in franchise sales is linked to the rise in local consumer spending coinciding with summer health management needs. The influx of 2030 customers is also a significant change."
Earlier, the government announced that to alleviate the burden on low-income households due to high fuel prices, exchange rates, and inflation, it would provide fuel price support payments ranging from 100,000 to 600,000 won to the bottom 70% of income earners. The payments can be used at franchise stores within the recipient's residential area until August 31, and any unused amounts will automatically expire.
* This article has been translated by AI.
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