CJ CheilJedang, Ottogi, Shinsegae are most trusted companies

Dec 31, 2020, 09:28 am

AsiaToday reporter Park Byung-il

Retailers had a tougher time than ever this year as a growing number of consumers engaged in so-called ‘untact’ (contactless) transactions amid economic slowdown from the COVID-19 pandemic. The smart consumers, who make rational choices combining various types of information, and the MZ generation, a combination of the millennials and Generation Z that are enthusiastic about new things, have emerged as key targets in the retail industry.

Companies introduced various products and services through collaboration with other industries to attract young consumers, while holding various discount events to attract practical consumers. Above all, non-face-to-face consumption has become a trend in the country, developing e-commerce and v-commerce industry fast.

Consumers continued to choose trusted brands and products. For this reason, companies made efforts to enhance the value of their steady-seller brands and introduced new derivatives to meet customer needs, creating a virtuous cycle that builds consumer trust.

A new survey has found that there was a strong preference for established retailers among consumers this year. CJ Group’s CJ CheilJedang has been loved by consumers for its high quality products, especially in the HMR (home meal replacement) market. The country’s health and beauty store chain operator CJ Olive Young received full support from young consumers. Ottogi, Shinsegae Group’s Shinsegae Department and E-mart, which have upgraded domestic shopping culture, also attracted consumers’ attention.

AsiaToday conducted a consumer survey on 1,000 people nationwide from Dec.14-15 in coordination with pollster R&Search in order to find this year’s most trusted companies. The survey found that CJ CheilJedang, Ottogi, Shinsegae, Coway, and Lotte Confectionery received full support from consumers this year despite difficult business environement due to the pandemic.

The survey found that CJ CheilJedang was recognized among consumers as a leading company for its global management. As the awareness of its core brands, such as bibigo and Hetbahn has increased, consumers responded positively to the fact that it speeded up advancing to the U.S. and European markets. CJ CheilJedang was named as a leading global management company, receiving support from 20 percent of the total respondents.

By age group, those in their 30s (25.6%) rated CJ CheilJedang’s global management the highest. Even those in their 20s (20.8%) and 50s (20%) showed high support. However, those in their 40s rated Ottogi (20.6%) higher than CJ CheilJedang (19.9%).

Ottogi fell slightly behind CJ CheilJedang by 5.8 percentage points in its global management capabilities, winning 14.2percent of consumer support. However, it showed highest consumer trust in consumer satisfaction category. 35.2 percent of respondents chose Ottogi as the company that works the hardest for customer satisfaction. It received high support from all age groups except those in their 60s. It received high support of 48.7 percent from its main target age groups, those in their 20s and 30s.

In the case of department stores, there are distinct differences in the companies they trust by age group. Consumers chose Shinsegae as the most trusted department store. Shinsegae Department Store ranked the first place (39.6%), followed by Lotte Department Store (21.3%) and Hyundai Department Store (16.4%). Lotte Department Store and Hyundai Department Store competed for the second and third place by age group. Among those in their 40s, 50s and 60s, Hyundai Department Store was more trusted than Lotte Department Store while young consumers under 20 and in their 30s trusted Hyundai Department Store more.

In the case of large supermarkets, 46 percent of respondents were found to trust E-mart the most. This was followed by Costco with 17.5 percent, Homeplus with 11.6 percent, and Lotte Mart with 11.4 percent. E-mart gained over 40 percent of support across all age groups. E-mart’s biggest rival, Lotte Mart, gained lower support ratings than Costco, among those in their 20s to 40s, but it was recognized as the second most reliable supermarket among those in their 50s and 60s.

GS25 was chosen as the most trusted convenience store with 41.9 percent of support, followed by cu (22.4%), E-mart24 (14.5%) and 7-Eleven (4.2%).

Coupang was the most trusted e-commerce company among consumers with 27.3 percent of support, followed by Gmarket (18%), 11th Street (15.6%). It ranked first in all age groups except those in their 60s.

The most trusted comprehensive food company among consumers was Ottogi. The food company was supported by 30.5 percent of respondents, outpacing Nongshim (26.1%) and CJ CheilJedang (17.3%). There was a difference by age group in terms of trust on food companies. Ottogi was the most trusted food company among those in their 20s to 40s, while Nongshim was the most reliable one among those in their 50s and 60s.

Meanwhile, the survey has a 95 percent confidence level with a margin of error of plus or minus 3.1 percentage points.

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