'Bibigo Mandu' Overseas Sales Surpass 60%... "I Am the Representative Item for the Globalization of Korean Cuisine"

Published 19 Feb.2020 08:52(KST)

[Asia Economy Reporter Choi Saehye] CJ CheilJedang’s ‘Bibigo Mandu’ is rapidly growing in the global market. Based on significant sales growth, it is leading the global craze for ‘Korean-style dumplings’ and establishing itself as a representative item for the globalization of Korean cuisine.

CJ CheilJedang announced on the 19th that Bibigo Mandu achieved sales of 868 billion KRW in the global dumpling market last year. In particular, global sales reached 552 billion KRW, marking approximately 50% growth compared to the previous year’s 369 billion KRW. The global sales ratio recorded 63.6%, surpassing half for the first time in 2018 and breaking through 60% last year, becoming a truly global product.

The remarkable progress in the United States stood out. Last year, Bibigo Mandu achieved sales of 363 billion KRW in the U.S., nearly 50% growth compared to the previous year. Following the milestone of surpassing 200 billion KRW in sales for the first time in 2018, it exceeded 300 billion KRW last year, continuing its explosive growth. Notably, it surpassed domestic sales of 316 billion KRW, marking the first time U.S. sales exceeded domestic sales.

Besides the U.S., sales grew in all regions where it has entered, including China, Vietnam, Europe, and Japan. Last year, sales in China reached 92 billion KRW, nearing the 100 billion KRW mark, while Vietnam recorded 60 billion KRW in sales, growing at an average annual rate of 100% over the past three years. Europe and Japan also expanded sales compared to the previous year, contributing to the Korean-style dumpling craze.

The expansion of Bibigo Mandu’s global influence was driven by ‘thorough localization’ and ‘infrastructure expansion.’ CJ CheilJedang developed products tailored to local consumer tastes by thoroughly researching markets, consumer needs, and food culture trends. Alongside localized products made with ingredients preferred by locals based on the Korean-style dumpling form, they targeted consumers with Korea’s signature product, ‘Bibigo Wang Gyoja’.

In the U.S., reflecting local food culture preferences for chicken and cilantro, they developed ‘Chicken & Cilantro Mandu.’ In China, reflecting dietary habits of consuming corn and napa cabbage, they introduced ‘Bibigo Corn Wang Gyoja’ and ‘Bibigo Napa Cabbage Wang Gyoja.’ These localized products and ‘Bibigo Wang Gyoja’ have captivated global consumers’ tastes, driving sales growth locally.

Aggressive investment in infrastructure also played a significant role. CJ CheilJedang focused on securing unique competitiveness by investing in research and development (R&D) and infrastructure targeting strategic countries such as the U.S. and China. Additionally, they expanded production bases from the U.S. and China to Vietnam and Europe in 2017, securing continental production hubs and officially starting to expand Bibigo Mandu’s global influence.

In the U.S., they significantly expanded production capacity by constructing a new factory in New Jersey following production bases in Fullerton, California, and Brooklyn, New York. They also secured business momentum by acquiring Schwans and Kahiki, which have differentiated competitiveness in the frozen food market. China and Vietnam also strengthened local production systems by expanding new factories and lines, which appears to have enabled rapid influence expansion.

CJ CheilJedang plans to continue focusing on expanding its global dumpling business through continuous R&D investment, business synergy among continental production hubs, and thorough localization strategies.

The U.S., which accounts for the largest sales share, will establish a new production base in the western region and expand local distribution channel entries through synergy with acquired companies such as Schwans. They will also accelerate new product development that combines Korean-style dumplings with categories heavily consumed locally, such as egg rolls, spring rolls, and pizza rolls. With Bibigo Mandu’s technology and taste quality differentiation, sales volume is expected to expand significantly with various types of dumplings.

They will also focus on expanding distribution channel entries in the eastern region by utilizing the ‘Bibigo Popup Restaurant’ operating at Rockefeller Center in Manhattan, New York, as a showcase store. Among various menus sold locally, Bibigo Mandu is the most popular. Positive local responses and ongoing inquiries about sales outlets suggest promising growth as a representative Korean food brand in the U.S.

In China, the largest dumpling-consuming country, they will focus on developing localized products using seafood such as shrimp, preferred by locals. They will also focus on online sales in response to the rapidly changing Chinese distribution market. Vietnam will continue a two-track strategy with Korean-style dumplings led by ‘Bibigo Mandu’ and local-style dumplings. At the same time, based on seafood purchasing and processing competitiveness, CJ Kkaoje will be developed as a ‘forward base for expanding seafood dumpling exports.’

Additionally, they will focus on expanding exports and strengthening business-to-business (B2B) operations in Japan and Europe to expand Bibigo Mandu’s global influence. Through this, they plan to achieve domestic and international dumpling sales exceeding 1 trillion KRW this year and leap to the top of the global dumpling market.

A CJ CheilJedang official said, “Bibigo Mandu has firmly established itself as a leader driving the globalization of Korean cuisine by expanding sales every year based on thorough preparation and continuous investment,” adding, “We will focus on expanding the global dumpling business based on accumulated R&D capabilities, innovative technological competitiveness, and confidence in achieving results.”