CEO CJ Foods Việt Nam: ‘Cầu Tre không chỉ bán chả giò’ | TheInsight
Short Summary:
This interview features the CEO of CJ Foods Vietnam discussing the company's strategy for growth in the Vietnamese food market. Key points include CJ Foods' dominant position in the frozen food sector (over 50% market share), their efforts to expand into the larger ambient food market (80% of the market), and their strategies for penetrating the general trade (GT) market through initiatives like the "Bibigo" campaign and smaller food trucks. The company leverages both Korean brand recognition (Bibigo) and established Vietnamese brands (like Gogi) to reach consumers. They are investing in cold chain infrastructure and exploring various models (direct investment, joint ventures, M&A) for expansion into new categories. The CEO highlights the importance of understanding Vietnamese consumer preferences and adapting products accordingly, citing the success of their Mandu (Korean dumplings) and the Bibigo campaign as examples. The company is also focused on sustainable practices, working directly with Vietnamese farmers to source raw materials. Their long-term strategy involves becoming a top-three player in multiple food categories through category expansion and increased exports.
Detailed Summary:
The interview is structured around the CEO's discussion of CJ Foods Vietnam's market position, strategies, and future plans.
Section 1: Introduction and Market Overview: The CEO introduces himself and CJ Foods Vietnam, highlighting the company's presence in the Vietnamese market for nearly 10 years. He emphasizes the significant difference between the frozen food (modern trade, MT) and ambient food (general trade, GT) markets in Vietnam, noting the latter's dominance (80%) and the growth potential of the former due to economic development and cold chain infrastructure improvements. He mentions the increasing consumer demand for convenience and healthy food options.
Section 2: CJ Foods' Market Position and Strategies: The CEO states that CJ Foods holds over 50% market share in the frozen food category (primarily MT) but aims to expand into the ambient food category (GT). He details strategies to penetrate the GT market, including investing in cold chain infrastructure (freezers, refrigerators) in GT outlets and the Bibigo campaign, which aimed to increase brand awareness and introduce Korean food to a wider Vietnamese audience. He highlights the success of the Bibigo campaign in enhancing brand image and reaching younger generations through digital marketing.
Section 3: Consumer Targeting and Brand Image: The CEO discusses targeting both younger generations and families (25-40 age group) through digital marketing and focusing on the convenience factor of their products. He mentions the positive consumer perception of Bibigo products, emphasizing their convenience for busy lifestyles. The Bibigo food truck campaign is discussed as a method of introducing the brand to consumers in rural areas.
Section 4: Acquisition of Gogi and Long-Term Strategy: The CEO explains the acquisition of Gogi, a major Vietnamese frozen food company, as a key step in rapid expansion. He emphasizes the strong brand recognition of Gogi and its contribution to familiarity with Vietnamese consumers. The long-term strategy involves exploring new categories within the ambient food market, focusing on volume drivers and utilizing various investment models (direct investment, JV, M&A). He mentions the potential of expanding into the HMR (Home Meal Replacement) market.
Section 5: Challenges and Future Plans: The CEO acknowledges the challenge of expanding into the ambient food market, where CJ Foods is not yet a dominant player. He outlines the company's vision to become a top-three player in multiple categories through category expansion and increased exports. He mentions investments in talent acquisition and the importance of the "only one spirit" philosophy, emphasizing innovation and differentiation in product offerings.
Section 6: Local Sourcing and Export Focus: The CEO highlights CJ Foods' commitment to becoming a local enterprise, emphasizing investments in local farming and sourcing of raw materials, particularly in the Long An province. He mentions the "Bibigo Farm" project and the export focus, citing successful launches of spring rolls in Costco (US) and Mandu in Korea. Approximately 30% of revenue comes from exports.
Section 7: Conclusion: The CEO concludes by encouraging consumers to try CJ Foods' products and reiterates the company's commitment to quality, convenience, and expansion. He shares his personal enjoyment of Vietnamese street food, demonstrating his integration into the local culture.