"Hooked on Korean Soju" Cham Isul and Ddukebi Captivate Southeast Asian MZ Generation

HiteJinro Expands Overseas Market

Focuses on 'Young Population' in Southeast Asia
Implements Differentiated Local Marketing by Country
Continuously Expands Online and Offline Distribution Networks

Models are holding soju products at a promotional event held at major establishments in Kuala Lumpur, the capital of Malaysia. Photo by HiteJinro

[Asia Economy Reporter Song Seung-yoon] HiteJinro is accelerating its global market penetration through soju by expanding its overseas export sector. In particular, it plans to continuously increase its market share by securing the Southeast Asian market, where the proportion of local buyers is high, targeting mainly the younger generation.

According to the industry on the 3rd, HiteJinro's soju export amount last year was $102 million (approximately 126.2 billion KRW), growing more than 36.3% compared to the previous year ($74.86 million). Compared to 2019, before COVID-19 ($58.62 million), it has roughly doubled. The Greater China and Americas regions, which entered relatively early, showed a growth rate of over 47% year-on-year, driving sales. HiteJinro exports beer, soju, and other liquors to over 80 countries. The Southeast Asian market is also rapidly growing. In Southeast Asia, soju exports increased by more than 55% in two years, from $17.33 million in 2019 to $26.88 million last year.

In fact, among the places where the proportion of local soju purchases increased the most over the past four years, most are in Asia, with six out of the top ten countries being Southeast Asian countries such as Malaysia, the Philippines, Singapore, Vietnam, Cambodia, and Indonesia. HiteJinro evaluates the Southeast Asian market as having very high growth potential. This is because the average age of the population is very young, the gross domestic product (GDP) growth rate is high, and female purchasing power is increasing. Accordingly, they are actively distributing various product lines such as Chamisul and fruit liqueurs through local distribution channels like convenience stores, which have good accessibility.

Consumers in Singapore are purchasing fruit liqueurs such as Chamisul and Grapefruit Eisl at Fair Price, Singapore's largest retail chain. Photo by HiteJinro

They are also implementing diverse marketing strategies targeting the local younger generation. Especially, they conduct local marketing tailored to each country's characteristics, focusing on the MZ generation (Millennials + Generation Z), including the ‘Phu Nu Than Thai’ (high-income women born in the 1990s) who have a strong interest in Korean culture.

HiteJinro established overseas corporations in Hanoi, Vietnam in 2016, following the United States, Japan, China, and Russia, and created its sixth overseas corporation in Manila, the Philippines in 2020. Going forward, they plan to continuously expand online and offline distribution networks centered on overseas bases to target local markets.

In the Philippines, where sales have significantly increased mainly in the home market, they plan to continue marketing activities specialized for home channels such as convenience stores. In Thailand, Chamisul and fruit liqueurs are stocked in some stores of large supermarkets like BigC and Makro. This year, they also entered over 5,000 stores of Thailand’s largest convenience store chain, 7-Eleven, and plan to steadily secure local distribution channels. Additionally, in relatively smaller markets like Indonesia and Cambodia, they plan to focus on promotions and marketing that meet the needs of MZ generation consumers to raise brand awareness. Although the Southeast Asian region was hit by consecutive shutdowns during the severe spread of COVID-19, the situation is now easing, and future sales are expected to rise. HiteJinro is putting full effort into recovering the entertainment market as most restaurants and entertainment establishments in Southeast Asia have resumed operations.

A HiteJinro official said, "This year, we will accelerate growth and brand power in strategic Asian countries and actively discover countries with growth potential to expand into Europe and North America," adding, "We will become a premium soju brand through differentiated strategies by country."

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