Into The Korean Market – Experience Sharing

Into The Korean Market
– Experience Sharing
By: Chew Kheng Fui, Senior Manager
Sales & Marketing Division
The Bee Cheng Hiang Heritage
Bee Cheng Hiang’s founder,
Mr Teo Swee Ee concocted
his own secret recipe, and
started to sell freshly grilled
bakkwa (barbecued meat) in
1933.
He sold from street to street.
It was an instant hit. The
bakkwa taste and aroma
was hugely popular and well
loved by his customers.
The Bee Cheng Hiang Brand
(Appearance)
(Flavour)
(Aroma)
9 STROKES
9 STROKES
9 STROKES
Bee Cheng Hiang Corporate Vision
“To be Asia’s leading
food company providing
quality products and
services to the global
market”
Bee Cheng Hiang Brand Vision
“To Be The Best At Helping People
To Experience and Share
Enjoyable Moments In Their
Everyday Life”
Korea [18]
Bee Cheng Hiang: Our Retail Network
China [105]
Taiwan [45]
Hong Kong [18]
Philippines [1]
Macau [2]
Malaysia [19]
Singapore [40]
Indonesia [6]
Total: 254
Retail Outlets
Bee Cheng Hiang: Our Retail Network
300
245
250
254
208
200
142
150
160 170
106
100
42
49
62
70
87
50
0
2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013
Total Retail Outlets
PRODUCTION
Bee Cheng Hiang: Expanding Into Korea
DEC 2009 – FEB 2010:
• Prepare to set up Manufacturing Plant
• Seek assistance from IE Singapore and KOTRA
• Company set-up; Company registration
• Refer relevant Government Departments
• Apply Manufacturing Licences; Product Testings, Product
Licences, etc.
• Introduced Government Flatted Factories
• Provided useful advice on Site Selections
PRODUCTION
Bee Cheng Hiang: Expanding Into Korea
MAR 2010:
• Renovation
• Recruitment of Production Staff
• Training of Production Staff
• Shipment of Machineries, Machine
Parts, Packaging, Key Ingredients,
etc.
Siheung-si, Gyeonggi-do
1.5 hours away from Seoul
INTRODUCING THE BRAND
Bee Cheng Hiang: Expanding Into Korea
MAR 2010:
• IE Singapore Seoul Overseas Centre
• 3 Major Department Stores in Korea:
(1) LOTTE Department Store
(2) SHINSEGAE Department Store
신세계백화점
(3) HYUNDAI Department Store
현대백화점
• Excellent support from IE Singapore Seoul OC
• Act as Interpreters, helped with Translations.
• Introduced Property Agents
INTRODUCING THE BRAND
Bee Cheng Hiang: Expanding Into Korea
MAY 2010:
• Participated in the annual SEOUL FRIENDSHIP DAY
• Organized by the Seoul Metropolitan Government
• Recommended & Supported by the Singapore Embassy in Korea
The Very First
Sale in Korea!
PRODUCTION
JUL 2010:
• ALL SYSTEMS GO!
• Production Started
• First Batch of LocallyManufactured Products
Bee Cheng Hiang: Expanding Into Korea
INTRODUCING THE BRAND
Bee Cheng Hiang: Expanding Into Korea
AUG & SEP 2010:
• Temporary Retail Booths @ 2 prominent Department Stores
(1) Shinsegae Department (Gangnam); &
(2) Lotte Department (Myeongdong)
• Short-term for 3 weeks.
• Sales Exceeded Expectations!
• Bee Cheng Hiang e-commerce – online purchases made
available via www.beechenghiang.co.kr
RETAIL OPERATION
Bee Cheng Hiang: Expanding Into Korea
OCT 2010:
• Bee Cheng Hiang’s 1st Retail Outlet opened in Seoul, located @
the busy Myeongdong tourist shopping belt
RETAIL OPERATION
Bee Cheng Hiang: Expanding Into Korea
• Opened 18 outlets within 2 years across Seoul, Busan & Daegu
Lotte Department
(Myeongdong)
Lotte Department
(Jamsil Lotte World)
RETAIL OPERATION
1st Bee Cheng Hiang Outlet in Busan
Bee Cheng Hiang: Expanding Into Korea
Shinsegae Department (Myeongdong)
D-Cube City
PRODUCTION
Bee Cheng Hiang: Expanding Into Korea
JUL 2010:
• Manufacturing Plant – Size & Capacity was good for 5 years
• Korea was Bee Cheng Hiang’s fastest growing market (within
2-year period)
DEC 2011:
• Plans were in place to move to a much larger stand-alone plot
of land.
PRODUCTION
JUL 2010:
Rented; 2,000 sq.m.
Bee Cheng Hiang: Expanding Into Korea
SEP 2012:
Purchased; 3,580 sq.m.
KEY OBSERVATIONS
Bee Cheng Hiang: Expanding Into Korea
• Communication - Language
• Cultural Differences – Social & Business
KEY LEARNING EXPERIENCES
Bee Cheng Hiang: Expanding Into Korea
• Great Learning Experience for Staff (both Production & Retail)
• Gained New Information on a New Market
• New Culture, interacting with Local Staff who speaks different
language, from different cultural background
• Learnt about Chuseok Festival (the Biggest Festive Celebration)
• Learnt about Lunar New Year
• Learnt about how the Big Department Stores work
Bee Cheng Hiang: Expanding Into Korea
THANK YOU
Kamsa Hamnida!