Hitejinro rides Korean wave in Vietnam on way to soju swell

Industry

Published: 19 Jun. 2024, 18:45 Updated: 19 Jun. 2024, 18:51

Hitejinro rides Korean wave in Vietnam on way to soju swell

Tham, a 21-year-old Vietnamese, far right, celebrates her friend’s birthday with fruit-flavored soju and samgyeopsal (pork belly) at a restaurant in Hanoi on June 10. [JOINT PRESS CORPS]

HANOI, Vietnam — On the bustling Ta Hien beer street in Hanoi on June 10, even at 6 p.m., the street bars were already filling up with tourists and locals.

Young Vietnamese sat along the roadside, drinking from familiar green bottles — soju. Street vendors eagerly pointed out the drink on their menus, trying to catch the attention of Korean reporters. As the reporters approached, some patrons enthusiastically clinked their soju glasses in a fun way.

"I first discovered soju during my college years," said Tham, a 21-year-old celebrating her friend’s birthday with the classic Korean alcohol and samgyeopsal (pork belly) at a restaurant. "It's available in most supermarkets in Vietnam, so I became familiar with it.

"I prefer fruit soju because it has a lower alcohol content than regular soju," she added.

"At our local Jinro BBQ franchises, over 99 percent of the customers are Vietnamese locals," said Kim Kwang-wook, the operator of a Jinro BBQ restaurant located on the beer street. "Fruit soju makes up 80 percent of our sales, with regular soju accounting for the remaining 20 percent."

Vietnamese locals drinking soju clink their glasses in a fun way. [SEO JI-EUN]

Hitejinro is aggressively promoting the drink in Vietnam, a market dominated by beer.

Beer constitutes 90 percent of the Southeast Asian country's alcoholic beverage market as of 2022, according to Euromonitor, owing to the hot and humid climate and the availability of diverse and affordable beer brands. Spirits account for 7 percent of the market, with soju representing about 3 percent.

Still, Hitejinro sees the growth potential of soju in the nation, given that the market for other distilled spirits in Vietnam grew by 27.9 percent on year to $302 million, according to Euromonitor's data. The soju segment increased by 39 percent to $65 million, driven by the popularity of Korean films and dramas.

“Vietnamese people are exposed to Korean culture through over-the-top media services and various online programs, frequently seeing the green bottle of soju in Korean dramas and variety shows. This often leads to curiosity and a desire to try soju,” said an official from Hitejinro.

Its growth was boosted when a ban on online sales of alcoholic beverages with an alcohol-by-volume exceeding 15 percent was lifted in 2021.

Fruit-flavored soju remains popular in Southeast Asia, unlike in its home country, primarily due to its familiar fruit aroma along with lower alcohol content compared to the regular version. Hitejinro exports flavors like peach, plum and strawberry, which are not available in Korea. Recently, Tiger Beer, the beer brand leading with a 30 percent market share in Vietnam, launched a fruity soju-beer hybrid product that has gained popularity among young consumers.

Employees from Hitejinro, dressed in the company's signature white-and-blue-colored outfits, promote soju products to seated patrons on Ta Hien beer street in Hanoi on June 10. [SEO JI-EUN]

Similar to its domestic strategy, the company is using various promotional activities, including table-to-table soju sampling and engaging games with prizes in entertainment venues.

On the Ta Hien beer street on June 10, Hitejinro mascots — big blue and pink toads — danced energetically alongside young female employees dressed in white and blue outfits, promoting the products. The promotional staff offered samples of Chamisul soju mixed with drinks like Sprite, engaging with both seated patrons and passersby.

Hitejinro mascots promote the company's soju in Hanoi, Vietnam, on June 10. [SEO JI-EUN]

Hitejinro’s marketing strategy also includes tastings and giveaways in supermarkets and convenience stores to encourage purchases. For new store openings, the company negotiates the prime placement of Jinro products in the liquor section.

During a visit to FujiMart in Hanoi on June 10, a distinctive banner declaring “Korean Number 1 soju Jinro” was displayed, showcasing various Jinro products.

Hitejinro's strawberry-flavored soju, right, and a copycat soju product made by a Thai manufacturer [SEO JI-EUN]

But just around the corner, copycat soju, like Tae Yang made by Thailand's Tawandang 1999 that comes in green bottles with Korean labels, was also present.

To combat imitations, Hitejinro plans to release a product with emphasized Jinro branding later this year.

"We initially did not make distinct external differences from various other soju products sold abroad to promote the image and familiarize consumers with the image of soju in green bottles,” said Hwang Jung-ho, the company's overseas president. “Now, we will put up the Jinro brand to ensure that consumers recognize our name."

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]