Korean bakeries beef up overseas expansion
Korea's top bakery franchises are preparing to expand their overseas sales networks in a bid to seek new revenue sources amid stricter regulations in the local market, industry data showed Wednesday.
Korea's bakeshop market is deemed to have reached saturation point, as the two leading brands of Paris Baguette of SPC Group and Tous les Jours of CJ Foodville Corp already have 3,160 and 1,400 bakeries nationwide, respectively, according to the data.
Recently revised local trade laws that forbid businesses from opening new shops within a 500-meter radius of an existing bakery have encouraged franchises to target overseas markets.
Industry leader SPC Group said it is seeking to launch more than 1,000 bakeries abroad by 2015, up from its from current 127, and expects an estimated 700 billion won from overseas sales.
The company made first inroads into the Chinese market in 2004 with a bakery cafe in Shanghai. Its Chinese business has continued to grow, and it now has 102 stores in Beijing, Tianjin and other Chinese cities. SPC Group said it will open more stores in China's northeastern regions to raise the number to 500 by 2015.
In the U.S., 21 Paris Baguette bakeries are run by local units in Los Angeles and New York, and one in Singapore was opened in September of this year.
The company said it will open new bakery shops in India and the Middle East next year.
Meanwhile, CJ Foodville's Tous les Jours, which has 71 overseas bakeries, is focusing more on Southeast Asian countries to become the biggest bakery franchise in the region by sales by next year.
It has bakery shops in Vietnam and Indonesia and is expanding its business in the Philippines, Malaysia and Cambodia by granting franchise rights to local firms. The company said it will open bakeries in all Southeast Asian countries by next year. (Yonhap)