CJ CheilJedang Establishes CCO Organization and Appoints Former Naver Executive

Integration of Online and Offline Sales in Domestic Food Business
Expert with Experience at 11st, Lotte Mart, and Homeplus Appointed

In response to the rapidly changing distribution environment, CJ CheilJedang has established a Chief Commercial Officer (CCO) organization within its food business division and appointed Song Seungseon, former Head of Global E-commerce at Lineplus (pictured), as its head. The CCO organization is a dedicated department that integrates and manages both online and offline sales operations for the domestic food business.

According to CJ CheilJedang and the food industry on May 8, Song Seungseon has been leading the new organization since March. This organization is responsible for developing and implementing tailored strategies for each distribution channel, both online and offline, and reallocating resources according to platform characteristics to enhance sales productivity. CJ CheilJedang explained, "This is a proactive measure to enhance organizational execution during the transition to a digital-based distribution structure."

Born in 1971, the new CCO, Song, majored in Natural Fiber Studies at Seoul National University and earned a master's degree in Business Administration from Yonsei University. He is recognized as an online expert with over 30 years of experience in distribution and e-commerce, having worked at 11st, Lotte Mart, and Homeplus, and serving as Head of Global E-commerce at Lineplus since 2021. The industry regards him as having strengths in platform strategy, execution, and digital transformation planning.

This appointment is also in line with the digital transformation vision announced by CJ CheilJedang CEO Kang Sinho at the shareholders' meeting in March. CEO Kang has emphasized, "To respond to the growth of the domestic online market, we will optimize support for both online and offline channels and establish a sustainable profit structure through structural innovation."

CJ CheilJedang's distribution structure is indeed evolving. According to the business report submitted to the Financial Supervisory Service, last year, complex distribution channels classified as 'new routes' (including discount stores, convenience stores, department stores, and online malls) accounted for 37.8% of domestic food business sales, an increase from the previous year. In contrast, agency channels (specialty stores, complex stores, restaurant specialty stores) accounted for 18.8%, and direct demand channels (B2B, food material companies, etc.) accounted for 19.4%, both showing a downward trend.

Notably, in the fourth quarter of last year, online channels offset the sluggish performance of offline channels. Direct transaction sales with Coupang surpassed the previous record set in the third quarter of 2022, and total online sales increased by 26% compared to the previous year.

The company's own mall, 'CJ The Market,' is also growing rapidly. By strengthening exclusive product offerings and discount and delivery services, the company is attracting more customers while reducing distribution commission costs and improving profitability. As of the end of March, the cumulative number of CJ The Market members was approximately 4.09 million, and paid membership for 'The Prime' reached 155,000, representing increases of 11% and 36%, respectively, compared to the same period last year.

A CJ CheilJedang representative stated, "Song's strategic planning and execution capabilities will play a role in driving the digitalization of distribution and channel restructuring," adding, "We will continue to strengthen our competitiveness through proactive responses to market changes."