"Early Morning Delivery of Packaged Kimchi" Fierce Competition to Capture Online Market

Daesang, Same-Day Manufacturing and Shipping... CJ CheilJedang Expands Delivery Channels

[Asia Economy Reporter Koo Eun-mo] Daesang’s ‘Jongga Jip’ and CJ CheilJedang’s ‘Bibigo,’ which dominate the domestic packaged kimchi market, are intensifying efforts to target new consumer segments by strengthening their online sales channels.

According to Nielsen Korea on the 10th, the size of the domestic offline packaged kimchi market last year was 275 billion KRW, a 9.0% decrease from 302.3 billion KRW the previous year.

The contraction of the offline packaged kimchi market last year is interpreted not as a decline in kimchi demand but rather as a large shift of consumers to the online market. The packaged kimchi market has been showing growth every year. While the cost of kimchi ingredients continues to rise steadily, the population making kimchi at home is continuously decreasing, leading to an increasing number of people seeking packaged kimchi. Additionally, the spread of COVID-19 has increased demand for home-cooked meals, and the popularity of convenient products suitable for outings is also a factor driving demand.

Daesang and CJ CheilJedang are competing fiercely to capture the market as consumer purchasing channels shift from offline to online. Currently, their market shares (offline basis) stand at 41.7% and 36.7%, respectively, with a gap of only 5 percentage points. In other words, whoever dominates the online market can either solidify their first-place position or overturn the rankings.

In response, Daesang is focusing on its online ordering platform ‘Jongga Jip Kimchi Workshop,’ launched in April last year. The marketing strategy involves taking orders for the desired taste and type of kimchi in the required quantity and manufacturing and shipping it on the same day. Small orders ranging from 300g to 1kg are possible, allowing consumers to order various types of kimchi without burden.

CJ CheilJedang has collaborated with famous creators to conduct digital campaigns and expanded its channels into the dawn delivery market. As a result of targeting new consumer segments, Bibigo kimchi sales nearly doubled compared to the previous year. Bibigo’s best-selling product is the convenient ‘Sliced Napa Cabbage Kimchi,’ which is most actively purchased by young one- to two-person households and families with preschool or elementary school children.

Professor Lee Eun-hee of Inha University’s Department of Consumer Studies said, "Kimchi purchased online is shipped from refrigerated facilities and delivered immediately, so the general perception is that it is fresher than kimchi bought offline," adding, "The recent trend of increasing online purchases is expected to continue."

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