News

bibigo Reaches the Top of the US Frozen Dumplings Market

2019.07.08

- Uses coriander instead of chives and develops chicken mandu
- Beats Chinese company Ling Ling through successful localization
- Insists on using the word ‘mandu’ instead of dumplings
- Fulfills the management vision of "Challenge Beyond Possibility"

bibigo Mandu sales (Unit: KRW 100mn), Korea, Global, *Based on consumer price, 2019 (estimate)

bibigo Mandu sold in Korea contains garlic chives (buchu in Korean), which many Koreans enjoy. On the other hand, bibigo Mandu in the US contains coriander instead of garlic chives. While pork is the main ingredient for mandu stuffing in Korea, CJ developed Chicken Mandu based on the food preference for chicken in the US.
With this localization strategy, CJ CheilJedang's bibigo Mandu has reached the top in dumplings sales at Costco Wholesale US, beating China’s Ling Ling.
Ling Ling is a brand that has monopolized the US dumplings market for the last 25 years, but bibigo Mandu has since beaten this brand and taken the No.1 spot in market share. The US market is shedding new light on K-food as US President Donald Trump, who recently visited Korea, invited Korean food companies such as CJ, Dongwon, SPC, and Nongshim to his meeting. bibigo Mandu stands out for striving to retain the identity of K-food. While Chinese companies use the English word 'dumplings,' CJ CheilJedang's bibigo insists on using the Korean word 'mandu' just spelled out in English.
Mandu sales in the global market including the US, which were 124 billion KRW in 2015, are expected to be 565 billion KRW this year. Last year, global market sales (342 billion KRW) first surpassed the Korean market sales (295 billion KRW).
bibigo Mandu could succeed in the global market based on CJ CheilJedang's key management DNA called "Challenge Beyond Possibility (CBP)." This is the management innovation activity and culture code of CJ CheilJedang, which has inherited CJ's ONLYONE management philosophy.
"The Chinese-style dumplings sold in the US had thick and dry wrappers, whereas bibigo Mandu uses chewy and thin wrappers kneaded at least 3,000 times," said an official at CJ CheilJedang. "bibigo Mandu was able to captivate the taste buds of Americans thanks to CJ CheilJedang's innovative spirit to overcome the existing limitations and possibilities."
In fact, CJ CheilJedang differentiated mandu in the US market as a healthy diet to replace a meal instead of a snack, which was a success, and this innovative case has also received attention from the US media such as AP.
CJ CheilJedang plans to radically reform their system to a world-class management system based on the success of mandu in the global market. First in line is to establish an integrated global system.
The company decided that there is a need to operate an integrated global manufacturing and sales system at the headquarters and global offices as they began to expand their networks of global offices throughout the world including the US, China, and Vietnam through global M&As.
The goal is to share the business activities of global offices on a real-time basis by standardizing the system and improving the speed and accuracy of making business decisions.
CJ CheilJedang is integrating and building an enterprise resource planning (ERP) system for the integrated management of business activity processes, such as manufacturing, logistics, finance, accounting, sales, and purchase with the US frozen food company Schwan's it acquired last year.
In addition, the company expands the fieldwork efficiency project, which eliminates repetitive low-value tasks, from Korea to global offices.
CJ CheilJedang plans to spread the financial efficiency system that eliminates various documents and references related to expenses and handles them 100% through a digital and automation system, as well as a work process automation system and chatbots for global offices.
CJ CheilJedang will continue to supplement and develop the programs currently in operation based on new digital technologies like artificial intelligence (AI) and big data. The company's strategy is to enhance the digital usage competencies of employees and improve work productivity and flow, thereby securing future growth engines. "We will obtain an efficient work infrastructure to quickly and accurately deal with internal and external business environment changes while we're constantly expanding our global business, thereby taking the initiative in achieving the goal of 'WBC (World Best CJ) 2030,'" said an official at CJ CheilJedang. [The end]