Cheongho Growth Strategy "New Business and Distribution Network Expansion"

Cheongho Nice Launches Over 10 New Products... Focus on Discovering Future Food Business
Enhancing Online Capabilities in the Contactless Era and Strengthening Customer Contact and Field-Centered Management

"It is urgently necessary to discover and expand new growth businesses that can lead Cheongho's growth over the next 5 to 10 years. We must accurately read changing trends and consumption patterns and establish products and distribution systems accordingly," said Jeong Hwi-dong, chairman of Cheongho Group. This expresses the group's determination to secure future growth engines through discovering new businesses and expanding new distribution channels this year. Cheongho Nice, the group's main company, has decided to take the lead with the keyword 'change.'

On the 5th, Cheongho Nice announced that it aims to discover new growth businesses and launch more than 10 new products this year. In January last year, Cheongho Nice appointed CEO Oh Jeong-won and was evaluated to have laid the foundation for a leap forward by presenting technology-centered products throughout the year. The air purifiers 'A600' and 'A600S' surpassed cumulative sales of 30,000 units, and the 'New Hero Air Purifier,' featuring model Lim Young-woong, is also gaining popularity. The water purifier and ice maker released by the US company QUENCH has also successfully settled in the market. Although Cheongho Nice's sales slightly decreased from 384.6 billion KRW in 2017 to 375.1 billion KRW in 2018 and 364.1 billion KRW in 2019, the industry expects a rebound last year. The cumulative rental accounts also increased to about 1.6 million last year. Chairman Jeong explained, "Through 'change' and 'innovation' last year, we achieved meaningful growth across all areas, including sales, account numbers, and service indices."

Jung Hwi-dong, Chairman of Cheongho Group

Based on this, Cheongho Nice plans to focus its strategy this year on securing future growth engines. The core of this strategy is to rapidly expand new distribution channels such as direct sales, retail sales, and online markets while launching various new products and discovering new growth businesses. CEO Oh, who marked his first anniversary in office, emphasized, "We must quickly secure new distribution channels for the new era and proactively respond to market demands to secure future growth engines. We will strengthen online capabilities for the contactless era and devote ourselves to developing products and services to acquire potential customers." In particular, Cheongho Nice plans to expand its customer base to include the MZ generation (born from the early 1980s to early 2000s), which has emerged as a major consumer group exerting influence in the digital environment.

Although emphasizing new distribution channels, Cheongho plans to simultaneously focus on the field since it is based on door-to-door sales. CEO Oh said, "The field is the largest contact point with customers," adding, "It is most important to devote ourselves to field-centered management, which is the foundation of the company, strengthen core competencies, and secure new growth engines through selection and concentration." Chairman Jeong also supported the field, saying, "All work must be conducted with a field-centered approach. Cheongho's future will be bright when we always listen to customers' voices and provide solutions that fill their needs."

This content was produced with the assistance of AI translation services.