Fried Chicken: From Inflation Indicator to Price War Battleground
Elijah Quashie, The Chicken Connoisseur, Tracks Inflation Through Fried Chicken
The rising cost of everyone's favourite comfort food? YouTube personality Elijah Quashie, better known as "The Chicken Connoisseur," has felt the pinch. Since launching his fried chicken review show "The Pengest Munch" in 2016, Quashie has witnessed prices nearly double, with meals jumping from GBP 2.50 to a staggering GBP 5 or 6. He suspects some shops are using inflation as an excuse to inflate profits.
South Korea's Fight Against Inflation: Homeplus to the Rescue
Across the globe, South Korea is battling its highest inflation in years, heavily impacting fried chicken prices. Here, the story takes a delicious turn. Homeplus, the country's second-largest retailer, decided to slash fried chicken prices by up to two-thirds! This strategic move aimed to capitalise on consumer frustration and potentially boost market share.
Dangdang Chicken: A Social Media Craze is Born
Homeplus “Dangdang” Discount Marks South Korea Fried Chicken Price War.
Homeplus launched "Dangdang" chicken, meaning "fair" or "proud" in Korean, also signifying "made today, for sale today." The price? A bucket for a mere KRW 6,990 (SGD 25), a fraction of what other retailers were charging. The strategy was a resounding success, with customers flocking to stores and social media buzzing about the "Dangdang" phenomenon.
Rivalry Heats Up: Price Wars Erupt
Faced with Homeplus's aggressive pricing, competitors were forced to react. Major chains like Lotte and Emart launched their own limited-time price cuts, offering significant discounts on their fried chicken products. This price war benefited South Korean consumers, offering them a much-needed break from rising food costs.
The "Dangdang" Effect: A Ripple in the Inflation Battle
While the long-term impact of "Dangdang" on national inflation remains to be seen, it has undoubtedly created a ripple effect. Chicken is a significant component of South Korea's inflation calculations, and falling chicken prices could put pressure on other meat prices, like pork.
The Future of Fried Chicken: Balancing Profitability and Affordability
Homeplus claims it maintains "Dangdang's" profitability through efficient supply chains and word-of-mouth marketing. However, keeping up with the overwhelming demand remains a challenge. This unique case study highlights the complex relationship between inflation, consumer behaviour, and the fight for market share.
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