Confusion grows over CU's purported offline expansion in China
A CU convenience store / Korea Times file
Confusion emerged over CU's purported offline store plan in the Chinese market, as a local distributor suggested that Korea's largest convenience store chain is preparing to open an outlet there, despite the Korean headquarters saying it has no such plans.
The confusion was sparked when the distributor, Ubay International Trade, launched an online store selling CU products in China, promoting them on Chinese social media platforms.
Ubay International Trade began offering a selection of Korean snacks, beverages and CU-branded products Monday on Alibaba Group Holding's Tmall platform, one of China's largest e-commerce platforms.
The launch was promoted through an account on Xiaohongshu, or RedNote, one of the largest social media and e-commerce platforms in China. The account was operated by Ubay but was named "CU" and verified by the Chinese social media platform as an official enterprise account. The account posted a countdown to the online debut and directed users to the Tmall store.
The campaign quickly gained traction among Chinese consumers, with its first post attracting more than 4,000 likes and over 3,000 comments. A countdown post published on Friday also generated strong engagement. One of the most-liked comments, which received nearly 1,000 likes, urged CU to bring one of its popular cookies to China at an affordable price. Another comment, accompanied by a photo of a Greek yogurt product and the caption "I want this," garnered more than 500 likes.
As of Monday morning, the Tmall store listed 10 products across four categories, including snacks, beverages and other private-label offerings, priced between 9.9 yuan ($1.46) and 69.9 yuan.
In response to RedNote users, the retail partner indicated that it was "actively preparing offline stores" in China, which was viewed as signaling CU's entry into the country's offline market.
However, CU's Korean operator, BGF Retail, said the posts did not reflect its official business strategy and that no offline expansion in China is under consideration.
According to an official of BGF Retail, Ubay International Trade imported CU's private-label products and carried out marketing campaigns through local online platforms. The spokesperson said the online sales do not represent CU's direct entry into China and that it is not considering opening offline stores in the country, adding that the online sales campaign had been misinterpreted as a direct expansion by the company.
Last October, BGF Retail announced it has reached a partnership with Ningshing Ubay International Trade, under which the Chinese company would distribute CU's private-label products through major e-commerce platforms in China.
The Chinese firm, specializing e-commerce, will also promote the products through live commerce and collaboration with influencers on social media platforms in China, according to the agreement.