HiteJinro, the Secret to 100 Years of Strong Sales Power
"Constant New Challenges as a First Mover"
Sales Are About Relationships... Sharing All Joys and Sorrows Together
"If you want to find a good restaurant, look for places with a Chamisul poster. If consumers want it, we will go there even if it's an island."
HiteJinro, the first domestic liquor company to celebrate its 100th anniversary, held a media briefing on the 29th of last month at a restaurant in Seokchon-dong, Songpa-gu, Seoul, under the theme "The Sales of HiteJinro That Made 100 Years," explaining the history of liquor sales, liquor distribution structure, and sales strategies.
Kim Hyunjin, Executive Director of Sales Headquarters at HiteJinro, is giving a presentation at the HiteJinro Media Friendship Day held on the 29th of last month in Seokchon-dong, Songpa-gu, Seoul.
On that day, Kim Hyunjin, Executive Director of the Sales Headquarters, cited the secret to HiteJinro's growth into the largest domestic liquor company over a long period of 100 years as the harmony of excellent product quality, marketing, and strong sales power. He especially emphasized that the sweat and effort of salespeople who continuously challenged and endured in the fiercely competitive domestic liquor market, with 2,729 manufacturers, are hidden behind the long century.
Director Kim explained HiteJinro's sales power with three keywords: challenge, perseverance, and expansion. First, he emphasized that to become number one, one must lead rather than follow other companies, proudly stating that HiteJinro has always been a 'First Mover' in liquor sales.
HiteJinro was the first in the liquor industry to start sales activities. In 1958, it was the first in the industry to hold a picnic by inviting business partners, and it has continuously maintained relationship-building events by inviting business partners since then.
HiteJinro was also the first to conduct 'special sales' by directly entering establishments to put up posters and manage relationships with employees. In Korea, consumers cannot purchase products directly from manufacturers but must go through first- and second-tier distributors. Sales targeting first-tier distributors are called wholesale sales, and sales targeting second-tier distributors are called special sales. Jinro started special sales for the first time in the liquor industry in the mid-1990s and began operating the industry's first special sales professional organization in 2010.
Products produced by HiteJinro are delivered to the final consumers through first-tier distributors (wholesalers, vendors, special distributors) and second-tier distributors (general establishments, large marts, hotels, etc.). Director Kim explained, "In wholesale sales with first-tier distributors, order and shipment, inventory management, payment collection, contract establishment management, and partnership management are conducted, while in special sales with second-tier distributors, efforts are made in product purchasing, display rate improvement, client development, and attaching promotional materials to manage consumers." He added, "Since all interactions among first-tier, second-tier distributors, and consumers are meetings between people, moving people's hearts is sales."
HiteJinro was also the first to attempt franchise sales by proactively discovering promising franchises and securing contracts. A representative case is 'Kkanbu Chicken.' Kkanbu Chicken started in 2006 in Yongin City with a 4-pyeong container and has maintained an 18-year partnership as 'Kkanbu (friend)' through early franchise contracts.
Currently, Kkanbu Chicken has grown into a large franchise with overseas expansion and 175 franchise stores. Quality control was also first implemented in the sales field. Starting with attaching temperature labels on Hite beer in 1995, the 'Fresh 365' campaign began in 2006 to exchange old beer for fresh beer. Additionally, aluminum draft beer kegs were introduced for the first time, and the 'Clean Care Service,' a draft beer quality management service, is being implemented.
HiteJinro showcased a consumer promotion activity experience zone, featuring roulette, lottery draws, and So-Maek certification, which are utilized in sales sites, at the Media Friendship Day on the 29th of last month.
Director Kim repeatedly emphasized that perseverance, along with challenge, is an important virtue of HiteJinro sales, citing soju sales in the Busan region as a representative case. To target Busan, where local manufacturers are strongest, HiteJinro has conducted a so-called 'wasteland pioneering operation' for the past 10 years. He said, "As a result of persistent sales activities such as regional university student supporter activities, various local community contribution activities, collective promotion activities by executives and employees, and dedicated organization operation, we succeeded in achieving first place in the Busan soju market, the last puzzle, in 10 years." According to HiteJinro, the market share of soju in Busan, which was about 6% in 2014, has increased to over 40% this year.
Now, HiteJinro's sales are considering expansion. The remaining challenge is overseas. Currently, they are focusing on targeting foreign residents in China, Southeast Asia, and other increasing markets. Director Kim said, "Targeting the foreign market is not an easy path either, but we are proceeding with perseverance as a long-term project," adding, "We are determined to make them seek our alcohol even when they return to their home countries."
Finally, Director Kim expressed hope that since there is no standardized manual for liquor sales, the footsteps of HiteJinro's sales will become the manual for liquor sales. He said, "Sales are, above all, about relationships," and added, "We will continue to meet and maintain relationships with business partners and consumers on the front lines, never letting go of the ties of those relationships, and be a HiteJinro sales team that shares all joys and sorrows together."
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