Launching 3-4 New Products Monthly
Expanding Dedicated Channels to Strengthen B2B Sales
Cuckoo, a dominant player in the domestic rice cooker market, is transforming into a ‘comprehensive home appliance company’ through product and customer diversification. This shift comes as demand for cooking rice declines.
Cuckoo Homesys' large-capacity ultra-high temperature hot and cold water purifier 'Zero100 Grand' [Photo by Cuckoo]
According to Cuckoo on the 24th, as of the 10th of this month, Cuckoo Electronics has launched 13 products this year, including an 8ℓ large-capacity air fryer, a drying and grinding-type food waste disposer, the Nello smart home camera pet feeder, and the Chefstick Freezone induction range. During the same period, Cuckoo Homesys introduced 15 new products such as the Inspire bidet, Rineature compact massage chair, Zero 100 slim boiled water ice purifier, and window-type air conditioner. Cuckoo operates under Cuckoo Holdings, divided into Cuckoo Electronics, which focuses on kitchen appliances, and Cuckoo Homesys, which concentrates on rental and lifestyle appliances.
The reason for releasing 3 to 4 new products every month is rooted in the growth limitations of the rice cooker market. Demand for rice is decreasing, and the rice cooker market is considered saturated. Per capita rice consumption in South Korea dropped from 110.2 kg in 1993 to 56.4 kg last year, nearly halving. Approximately 3 million rice cookers are sold annually, with about 70% being Cuckoo products. Cuckoo’s pressure rice cooker sales revenue stagnated at 448.3 billion KRW in 2022 and 439.9 billion KRW last year.
In response, Cuckoo has launched a product diversification strategy as a decisive move. A Cuckoo representative explained, “By continuously releasing new products with diverse lineups and differentiated features, we are naturally integrating into the rapidly changing lives of consumers and solidifying our position as a comprehensive home appliance company. Cuckoo Homesys is growing around water purifiers, air purifiers, vacuum cleaners, and bidets, while Cuckoo Electronics is expanding with induction ranges, microwaves, and dishwashers.”
Alongside this, the company is also focusing on customer diversification. Since the beginning of this year, it has actively expanded its B2B (business-to-business) operations targeting small business owners, corporations, and public institutions. In April, Cuckoo signed a contract to exclusively supply key products such as air purifiers, bidets, and water purifiers to the Inspire Entertainment Resort multi-use facility located in Yeongjongdo, Incheon. Cuckoo’s commercial water filters were also introduced at the buffet operated by Lotte Hotel Seoul.
To strengthen B2B sales capabilities, dedicated channels have been expanded. Cuckoo Homesys opened a B2B consultation page on its official website and is conducting various sales activities including corporate special sales, built-in products for construction companies, and corporate partnerships. A dedicated hotline for corporate customers has also been established.
These efforts are reflected in the company’s performance. According to the Financial Supervisory Service’s electronic disclosure system, Cuckoo Holdings’ cumulative consolidated sales for the second quarter reached 183.5 billion KRW, an increase of over 5% compared to 174.2 billion KRW in the same period last year. Operating profit for the same period was 18 billion KRW, up more than 20% from 14.9 billion KRW the previous year.
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