Korean Media: From Haidilao to Bawang Cha Ji, Chinese Brands Are Sweeping South Korea!

On May 13, Korean media outlet Seoul Economic Daily published an article stating that as Chinese food brands gain increasing popularity in South Korea, Haidilao's operating profit doubled last year. With rising popularity of Chinese milk tea brands such as Cha Bai Dao and Hey Tea, and Bawang Cha Ji entering the South Korean market for the first time in the second quarter of this year, Chinese food brands are expanding their share in South Korea’s restaurant industry.

According to industry insiders, Haidilao Korea’s sales reached 117.489 billion KRW last year, a 50.87% increase from the previous year (78.053 billion KRW). During the same period, its operating profit nearly doubled—from 10.963 billion KRW to 20.238 billion KRW. Haidilao Korea’s sales have grown for five consecutive years, rising from 14 billion KRW in 2020 to 19.9 billion KRW in 2021, 41.2 billion KRW in 2022, and 58.3 billion KRW in 2023.

Haidilao is a brand specializing in hot pot. Since opening its first overseas store in Singapore in 2012, by 2024 Haidilao had expanded to 122 branches across 14 countries, including the United States, Canada, the UK, Japan, Malaysia, and Australia. Currently, Haidilao operates 11 stores in South Korea. Despite average spending per person ranging from 40,000 to 60,000 KRW, Haidilao remains extremely popular among Generation Z and Millennials.

Other Chinese brands are also accelerating their expansion into the South Korean market. Notably, the Chinese milk tea brand Bawang Cha Ji plans to officially launch in South Korea during the second quarter of this year. The brand intends to open multiple stores simultaneously, including a flagship location in Gangnam District, Seoul. Another Chinese milk tea brand, Cha Bai Dao, entered the South Korean market for the first time in January 2024 and has already opened over 20 stores there. Additionally, Bingxiang Ice City and Hey Tea currently operate approximately 10 and 5 stores respectively in South Korea.

A South Korean food industry expert said: “In the past, South Korean consumers’ perception of Chinese cuisine was limited to old-fashioned dishes like sweet and sour pork or seafood noodles. However, with the growing popularity among younger generations of foods such as spicy hot pot, milk tea, and hot pot, perceptions of Chinese cuisine have significantly evolved. Chinese food brands entering the South Korean market have adopted a premium positioning, which has reduced consumer concerns about food quality.”

Original source: toutiao.com/article/1865036019210250/

Disclaimer: This article represents the personal views of the author.