CJ 'Bibigo Kimchi' Leads Vietnam Kimchi Market... 25% Growth Last Year

by Lee Seungjin

Published 08 Mar.2021 08:16(KST)

Bibigo Kimchi is displayed at a supermarket in Vietnam.

[Asia Economy Reporter Seungjin Lee] CJ CheilJedang is accelerating efforts to promote Korean food in Vietnam with its ‘Bibigo Kimchi’.

CJ CheilJedang announced on the 8th that ‘Bibigo Kimchi’ achieved sales of approximately 15 billion KRW in the Vietnamese market last year, a 25% increase compared to the previous year. Over the past three years (2018?2020), ‘Bibigo Kimchi’ has maintained a market share of over 50% in Vietnam, overwhelmingly outpacing local competitors and holding the number one position. More than half of the kimchi buyers in Vietnam consume ‘Bibigo Kimchi’.

CJ CheilJedang entered the Vietnamese kimchi market in 2016 and has been producing ‘Bibigo Kimchi’ locally for six years. The Vietnamese kimchi market, which was around 10 billion KRW in 2015, has steadily grown nearly threefold to 26 billion KRW last year following CJ CheilJedang’s entry. It has shown an average growth rate of over 30% in the past three years. ‘Bibigo Kimchi’ is available at more than 4,300 stores nationwide in Vietnam, including large supermarkets such as Big C Mart, Co.op Mart, and Metro.

CJ CheilJedang analyzed that the success of ‘Bibigo Kimchi’ is due to its ‘localization based on Korean fermentation technology’ strategy. Vietnam has a culture of fermented foods and pickled vegetables, such as Vietnamese-style salted seafood, so kimchi itself is relatively well accepted by locals. However, kimchi previously sold in Vietnam was excessively sweet with a strong fish sauce taste and aroma.

CJ CheilJedang localized the product to suit local tastes while preserving the essence of Korean kimchi, including ingredients and preparation methods. First, to eliminate the aversion to the red color that evokes spicy and strong flavors, the spiciness level was adjusted. The company focused on ‘Bibigo Sliced Kimchi’ as the main product but also introduced ‘Cilantro Kimchi’ containing cilantro, a herb familiar to locals, and ‘Vegetarian Kimchi’ without fish sauce for consumers who avoid animal-based ingredients due to religious beliefs.

Marketing activities emphasizing the Korean authenticity of ‘K-Kimchi’ and product reliability were also effective. According to local consumer surveys, Vietnamese kimchi consumers prioritize ‘quality safety’ and ‘good raw materials.’ Accordingly, CJ CheilJedang emphasized that ‘Bibigo Kimchi’ is a Korean representative food company’s Korean food brand to build consumer trust. They also actively promoted that the product is made with good ingredients and can be enjoyed more healthily through the natural fermentation process unique to Korean kimchi.

A CJ CheilJedang official said, “The achievements in Vietnam, the largest kimchi market in Southeast Asia, are significant as a foundation for the global expansion of ‘K-Kimchi.’ We plan to accelerate the spread of ‘K-Food’ in global markets such as Vietnam by leading with ‘Bibigo Jar Kimchi,’ which incorporates CJ’s differentiated packaging technology.”

Meanwhile, global sales of ‘Bibigo Kimchi’ have been increasing by about 25% annually. CJ CheilJedang is focusing on expanding the recognition of Korean kimchi by promoting ‘Bibigo Kimchi’ in more than 30 countries, including Japan and the United States.