Korean street food sparks fierce SME battle in Thai retail market

In a dramatic turn of events that underscores the competitive nature of Thailand's evolving food retail landscape, emerging Korean street-food brand Happy Munchy has found itself in a David-versus-Goliath pricing war that epitomises the challenges faced by small and medium-sized enterprises (SMEs) in the cutthroat convenience-food sector.

The conflict centres on eomuk, a popular Korean fish-cake product that has rapidly gained traction among Thai consumers. Happy Munchy, co-founded by celebrity presenter Nina Sutita Ruangronghirunya and two business partners, has become a notable disruptor in this emerging market.

The brand's founder, Sutita, publicly expressed her frustration after discovering that larger competitors had slashed prices of similar products from 29 baht to 22 baht – a move that threatens to squeeze out smaller producers.

"We've spent years developing our product, ensuring quality, and building brand recognition," Sutita lamented in a social-media post that has since gone viral. "Suddenly, larger players are undermining our market position through aggressive pricing strategies."
 

The eomuk market represents a microcosm of broader trends in Thai food retail. Driven by the rising popularity of Korean cuisine (K-Food), these fish-based snacks have transformed from niche street food to a mainstream convenience-store staple.

Happy Munchy has attempted to distinguish itself through key value propositions:

• No preservatives
• High protein content
• Natural ingredients
• Diverse flavour profiles including vegetable and cheese-corn variants

The brand has secured distribution through major channels including:

• 7-Eleven convenience stores
• Online delivery platforms
• E-commerce marketplaces sudh as Shopee
   

Analysts suggest this pricing battle reflects larger market dynamics. "Small brands are increasingly vulnerable to price competition from established players," notes a food-industry consultant who wished to remain anonymous. "Innovation and brand loyalty become crucial survival strategies."

The ongoing price war potentially benefits consumers, offering more affordable options while maintaining product quality. However, it raises questions about the sustainability of small-scale food production in an increasingly consolidated market.

For Happy Munchy and similar SMEs, the path forward lies in continued product innovation, building brand loyalty, and potentially seeking strategic partnerships or investor support.