Home appliance corporations Cuchen is focusing on expanding in the Japanese market. With overseas business sluggish, it is drawing up an export expansion strategy centered on Japan, where it has comparatively delivered results. At home, it also appears to be moving to secure growth drivers by strengthening entry into the B2B (business-to-business transaction) market.
Based on ChosunBiz reporting on the 12th, Cuchen is aiming to increase its market share in Japan with home appliances such as rice cookers. Japan is assessed as a region with high growth potential for the market, including rice cooker sales, because its food culture is similar to Korea's and it has high consumption of white rice. Analysis suggests it will expand local appliance distribution networks and move to strengthen its brand presence.
Cuchen also exports products overseas to Europe and the United States, but has not achieved results. Starting with its entry into Russia in 2012, it sought to target overseas markets such as Central Asia and Europe, but the war between Russia and Ukraine disrupted its plans. Efforts to increase contact points with local consumers by establishing corporations in North America and China have also faced difficulties.
Cuchen's North America corporation, established in 2022, posted a net loss of 12.56 million won, followed by 945.83 million won in 2023 and about 1 billion won last year. The China corporation, Cuchen Liaoning Co., Ltd., also recorded a net loss of 324.62 million won in 2023 and 739.65 million won last year. In the case of the China corporation, it struggled in business, with last year's sales not even reaching 1 billion won.
In the end, Cuchen picked Japan as its overseas export base for next year. It plans to accelerate its push into the local Japanese market with rice cookers at the forefront. It is said to be devising a strategy to strengthen its brand presence locally.
Internally, there is said to be a consensus that it can deliver meaningful results next year. After recording losses from 2019 to 2023, Cuchen turned a profit last year with 176.4 billion won in sales and 3.9 billion won in operating profit.
It also drew up plans to introduce loading robots on the production line in Cheonan, South Chungcheong, and to add automation facilities to build a smart factory that controls packaging and logistics. Although the domestic market is saturated, it believes that if it seeks efficiency at the production stage and targets the Japanese market, where products are getting a response, it can lay the groundwork for growth.
A Cuchen official said, "It is not that we are entering Japan because results at the U.S. and China corporations are poor," but noted, "We judge that if we raise efficiency through advancing the smart factory, we can achieve production cost reductions and improve profitability."
It is also planning to expand its domestic B2B business. The idea is to secure delivery channels by strengthening cooperation with markets such as construction companies through range hoods and built-in appliances.
Since 2014, Cuchen has supplied kitchen appliances to newly built apartments in Gangwon Province, Incheon, Gyeonggi, and Seoul. As competitor in the same industry Cuckoo has delivered results in the B2B market with products such as water purifiers and air purifiers, it believes it can also achieve results in the B2B market.
An industry official explained, "As the private construction market has contracted, Cuchen is preparing to expand deliveries centered on public housing projects," adding, "It appears to be aiming to secure stable volumes through public-institution tender projects and strengthen its revenue base."