HiteJinro aims to establish Jinro soju not just as a fleeting trend riding on the Korean Wave, but as a drink that has permeated the lives of local residents.
Kim In-kyu, the representative of HiteJinro, expressed this determination regarding the popularization of Jinro in the Philippine market during a press conference held in Manila on the 18th. Kim also noted ambitions to expand the market across Southeast Asia based on the successful strategies gained in the Philippines.
HiteJinro believes that the localization strategy of Jinro soju in the Philippines is yielding results. This is evident in the export volume figures. According to tariff trade statistics, HiteJinro accounted for 67% of the total exports of soju to the Philippines last year. This means that 6 out of 10 bottles of soju exported to the Philippines are Jinro.
The Philippines is a market that has distinctly changed from one centered on Korean consumers to one focused on local consumers. Although the number of overseas Koreans in the Philippines has steadily decreased, the export volume of soju has consistently increased.
According to the Overseas Korean Foundation, the number of overseas Koreans in the Philippines declined from about 88,000 in 2013 to 34,000 in 2023, a drop of about 60%. Meanwhile, during the same period, HiteJinro's soju export volume to the Philippines increased by approximately 3.5 times, recording an average annual growth rate of about 41.7% from 2022 to 2024.
Kim noted, "As we have entered the new 100 years beyond last year's 100th anniversary, this year is very important. We are approaching the market with a mindset that we must achieve results overseas." He added, "Among them, I evaluate the Philippines as the market where localization has been the most successfully established among Southeast Asian countries."
HiteJinro declared the globalization of soju about a decade ago, in 2016, and has been targeting overseas markets. It established a local corporation in July 2019, using the Philippines as a strategic foothold for market expansion in Southeast Asia.
The background of this success involves the Korean Wave. Filipino consumers who watched Korean dramas began to show interest in soju. Kim stated, "We judged that we should fully utilize the Korean Wave if we could, and it is one of the clear success factors."
HiteJinro did not rely solely on the Korean Wave. The introduction of products tailored to the tastes of Filipino consumers and the expansion of local distribution channels are also factors in its success. Initially, HiteJinro approached consumers primarily with fruit liqueurs known as 'fruit soju.' Kim remarked, "Consumers who became familiar with Jinro through fruit soju are now choosing regular soju options like Chamiseul Fresh and Original."
Entering various local distribution channels, such as membership warehouse discount stores like S&R Membership Shopping that are primarily frequented by middle-class consumers, has also been a factor in the establishment of Jinro soju in the Philippine market. To achieve this, HiteJinro utilized local major distributors such as Premier Wine & Spirits, Inc. and SM Group. This is akin to targeting Emart, Lotte Mart, and Costco in Korea. Jinro soju has also found a place in convenience stores like 7-Eleven.
Kim stated, "Now, soju is no longer a product that can only be found in Korean restaurants in the Philippines," adding, "Local consumers can easily find Chamiseul Jinro in convenience stores, supermarkets, online shopping malls, and even in independent cafes."
Kim emphasized that the ultimate goal is to make the culture of spending time with Jinro soju permeate.
Kim noted, "I have long ceased to regard Lotte Chilsung or OB as competitors. I see consumption culture - watching Netflix, traveling, exercising, etc. - as the competition." He added, "In this context, while targeting overseas markets, I focus on creating time, space, and culture associated with Jinro soju, rather than merely exporting products." He further stated, "We will strive for the popularization of Jinro in overseas markets as a catalyst that connects people and culture."
Meanwhile, HiteJinro maintains its goal of achieving overseas sales of 500 billion won with Jinro soju by 2030. Kim remarked, "It is a somewhat aggressive goal, but we have not revised it," adding, "Once mass production begins in our Vietnam factory in 2027, it will enable cost reductions in logistics and such, and I believe we will experience growth again in the Southeast Asian market, including the Philippines."