SPC Group Announces Executive Personnel Changes... Strengthening Overseas Business and Restructuring Labor-Management Culture Innovation Office

31 Executives Promoted, Representing 30%
4 Promoted in Labor-Management Culture Innovation Office, 4 in Overseas Business

[Asia Economy Reporter Lim Hye-seon] SPC Group conducted an executive personnel reshuffle on the 3rd. In the era of phased daily recovery (With Corona), the group strategically expanded its global business division to enhance global competitiveness, and reorganized the Labor-Management Culture Innovation Office to establish an advanced corporate culture, following the labor disputes that caused difficulties this year.

The Largest Promotion in History in the ‘With Corona’ Era

On the 3rd, SPC Group carried out its year-end regular executive promotions, promoting a total of 31 people, accounting for about 30% of all executives. The promoted include 1 vice president, 3 senior managing directors, 13 managing directors, and 14 deputy managing directors. This move is interpreted as a strategic step to expand global business in line with the current moment when the internal atmosphere, which had been stagnant due to the COVID-19 pandemic, is being uplifted and K-content and K-food are gaining attention.

Along with this, the group is focusing on ESG management by expanding the ‘Labor-Management Culture Innovation Office’ within the group. Due to conflicts between SPC Group and the labor union this year, franchisees of Paris Baguette, Dunkin Donuts, and others suffered significant damage. Four executives related to this were promoted. The Labor-Management Culture Innovation Office is expected to lead the creation of value and communication for labor-management coexistence, as well as a new personnel system and a horizontal organizational culture.

The group also promoted four executives in charge of strengthening global business. This is seen as a firm declaration of the group’s commitment to continuously strengthen its global business. The number of overseas stores of SPC Group’s subsidiaries increased more than threefold over ten years, from 137 in 2012 to 435 this year. Despite the COVID-19 pandemic, 11 new stores opened last year and 22 this year. The country with the most stores is China, operating 310 locations. As of the first half of the year, sales of Paris Baguette’s China subsidiary grew by more than 20% compared to the same period last year. The proportion of local franchises in Paris Baguette stores in China, which accounted for 50-60% in 2017, has now reached about 80%, indicating recent stabilization. The number of overseas subsidiary stores follows China with the United States at 92, Singapore at 21, Vietnam at 9, France at 2, and Cambodia at 1. In the U.S., there are plans to increase the number of stores to around 1,000 by 2030.

Southeast Asian Market, Establishing Local Factories

Recently, the group has diversified its approach from direct entry to joint ventures or master franchises. SPC Group recently established a joint venture with Indonesian company Erajaya Group to enter the Indonesian market, marking Paris Baguette’s seventh overseas expansion country. Indonesia, with the largest area and population in Southeast Asia, is expected to serve as a foothold not only for expanding business in Southeast Asia but also for future entry into the Middle Eastern market. In June last year, the group established a Canadian subsidiary, and in September, it formed a joint venture with Cambodian company HSC Group. SPC Group’s overseas business expansion aims to secure growth engines beyond the saturated domestic market. Paris Baguette’s brand recognition is increasing overseas. In fact, the Paris Baguette PLQ Mall store in Singapore reportedly attracts over 600 customers daily despite the COVID-19 situation, recording sales more than twice the local store average, according to the company.

The group also plans to establish a factory in Malaysia. In April, SPC Group Chairman Hwang Jae-bok met with Malaysian government officials including Chief Minister Azmin Ali, the head of the Investment Promotion Agency, and the CEO of the Korea Trade-Investment Promotion Agency to discuss cooperation and investment plans with Malaysia.

SPC Group stated, "The keywords for this personnel reshuffle are ESG, labor-management culture, and global." They added, "Along with existing markets such as Singapore, Vietnam, and Cambodia, we will accelerate expansion in the Southeast Asian market and actively enter the North American market to promote Korean bakery worldwide."

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