Hanwha Galleria's homegrown ice cream brand Benson, which entered the market last year, is pursuing an aggressive store expansion strategy — moving beyond prime commercial districts like Gangnam to open outlets in residential neighborhoods, putting it in direct competition with market leader Baskin-Robbins.
Better Scoop Creamery, the Hanwha Galleria subsidiary that operates Benson, will open a store near Seoul National University Station in Bongcheon-dong, Gwanak-gu, on Thursday. The area is home mainly to single-person households and university students in their 20s and 30s. A Baskin-Robbins outlet sits roughly 100 meters away.
Another location will open near Seokhyeon Station in Seongnam, Gyeonggi Province, on July 23. The brand also opened a store in Mokdong, Yangcheon-gu, on July 9. All three locations sit in residential commercial zones, and each has a Baskin-Robbins within about 200 meters — making competition unavoidable. The same is true of Benson's Misa, Hwagok, Daechi and Sinlim stores.
Benson launched its first store at Apgujeong Rodeo in May last year and initially expanded through prime Seoul commercial districts including Gangnam Station and Lotte World Mall. More recently it has been targeting residential and everyday lifestyle zones. While consumers stand to benefit from greater choice, rival brands already operating in those areas have little choice but to treat the newcomer as a competitive threat. Benson said the placement is not deliberately competitive, noting that Baskin-Robbins operates roughly 1,700 stores nationwide.
"We are expanding into residential and everyday commercial areas, as well as commercial districts, so that customers can experience premium desserts in their daily lives," a Benson official said. "Locations are selected through a comprehensive review of catchment demand, foot traffic, accessibility and the characteristics of each commercial zone." The official added that the company plans to consider additional openings in areas that show strong customer response, based on store performance and demand data by region.
Benson is a brand championed by Kim Dong-seon, executive vice president for future vision at Hanwha Galleria and the third son of Hanwha Group. The brand currently operates 19 stores, concentrated in the greater Seoul area. It has set a target of reaching 30 stores this year and 100 by 2027, and has built its own production center in Pocheon, Gyeonggi Province.
Hanwha Galleria has continued to channel operating funds into Better Scoop Creamery. On Thursday, it plans to extend an additional 5 billion won ($3.32 million) in operating loans to the subsidiary. Combined with prior equity injections and loans, the cumulative amount invested has reached 53 billion won.
The central challenge is achieving profitability. Better Scoop Creamery posted 4.3 billion won in sales last year, while both its operating loss and net loss each came to 9.5 billion won. Benson expects to reach breakeven once it secures a network of around 100 stores..
korean@heraldcorp.com
