CU Enters Chinese Market... Signs PB Export Agreement with China's Largest Distributor

Business Agreement Signed with China's Largest Import Distributor UBAY
CU PB Products to Be Exported to China
Dedicated CU Section to Launch on Chinese E-Commerce Platforms
CU PB Product Pop-Up Stores to Open in China

Private brand (PB) products from CU, the convenience store operated by BGF Retail, are entering the Chinese market.

According to BGF Retail on October 16, CU signed a business agreement on October 15 with Ningshing UBAY, China's largest import distributor, taking advantage of expanded Korea-China exchanges, including the recent temporary visa-free entry for Chinese nationals.

On the 15th, at the BGF Seolleung Building in Gangnam-gu, Seoul, Min Seung-bae, CEO of BGF Retail (from the left), and Ningxing Youbei, CEO of Sichuan Ningxing Youbei, are holding a business agreement ceremony. Provided by BGF Retail

Ningshing UBAY, established in 2014 in Ningbo, Zhejiang Province, is China's largest import distributor, conducting business through imports and domestic operations. The company imports not only well-known Korean food, beauty, and home appliance products but also renowned international products into mainland China.

BGF Retail plans to collaborate with Ningshing UBAY to introduce CU PB products both online and offline in mainland China.

First, the company will launch a dedicated CU section on Chinese online commerce platforms and focus on entering major Chinese distribution channels. In addition, it will conduct customized marketing targeting Chinese consumers through live commerce, influencer collaborations, and other social networking services (SNS) and new media channels.

BGF Retail aims to use this agreement as a stepping stone for offline exports. Moving forward, the company plans to conduct viral marketing by opening CU PB product pop-up stores in major first- and second-tier Chinese cities.

This initiative is also expected to expand overseas sales channels for domestic small and medium-sized enterprises that manufacture CU PB products. There are currently around 60 domestic small and medium-sized partner companies that have entered overseas markets directly or indirectly through CU.

Meanwhile, since January last year, CU has been pursuing overseas expansion, including installing CU product displays in Japan's Don Quijote stores. To date, CU has exported competitive PB products to more than 20 countries, including the United States, China, the United Kingdom, the Netherlands, Mongolia, and Vietnam. CU's overseas export volume reached 8 million dollars last year and achieved 10 million dollars this year. CU plans to diversify its business with the goal of reaching 50 million dollars in overseas exports within the next five years.

Min Seungbae, CEO of BGF Retail, stated, "We expect to establish a strategic partnership by combining each company's core competencies under the principles of long-term cooperation, mutual complementarity, and shared growth," adding, "As a leading K-convenience store brand, we will continue to promote CU and its affiliated brands in various countries and create diverse business models."