He said, “As Korea’s leading native coffee brand that doesn’t pay royalties, we will lead Korea’s coffee culture. Five years until 2020 will be the most meaningful period, and Ediya Coffee will meaningfully prepare through ‘Vision 2020.’”
At the press conference, Ediya Coffee, celebrating its 15th anniversary, announced ‘Vision 2020,’ including blueprint from results until today and to 2020. It also announced main strategies for achieving 1 trillion won of sales until 2020, such as reaching 3,000 franchises, extension of distribution business, for example coffee of stick coffee beans ‘Beanist,’ overseas expansion by itself, enhancing quality of coffee, maintenance of coexistence management and etc. Hereby, it makes its position as the coffee brand representing Korea more than coffee franchise.
Currently, Ediya Coffee has nearly 2,000 franchises, and it is expected to reach the number at the second half of the year. For store distribution all over the country, the capital region has 1,014 stores which are about 64% of total stores, followed by Yeongnam area which has 350 stores, taking about 22%. When seeing proportion of stores comparing capital population, a demand for provincial stores is expected to be increased, so it is planned to strengthen extension of domestic market based on provincial areas.
Firstly, in April, it is going to build an office in Honam, Gwangju, to strengthen opening stores in Honam area where the number of stores is too small compared to its population distribution. In case of Gwangju, it is possible to set a minimum goal which is opening more than a hundred stores, as population per store is nearly ten times that in Seoul. Also, Chungcheong and Gangwon region are in situations of opening more than twice the number of current stores. Apart from this, by intensifying ‘Shop in shop’ form of cooperation with other companies, Ediya Coffee has a strategy of aggressively opening stores even in season-special commercial supremacy.
In 2012, it first launched coffee of stick coffee beans ‘Beanist25,’ and released upgraded product ‘Beanist Mini’ in 2014. Total 30 million sticks are sold until the last year, and the sales keep going up three times every year after release. It is going along smoothly with aiming 10 billion won of sales in this year. Moreover, sales method only used in franchises are extended to distribution channels, such as mart, convenience store, open market, etc., and they are on the ascending current.
Beanist Mini became a new drive in Ediya Coffee where franchise business is the main, and it is behaving very much like a devoted son. Ediya Coffee is seeking for method that can make it leap to a franchise-based general food company by setting Beanist Mini’s distribution performance as a foothold.
Ediya Coffee is now drawing a detailed picture if subdividing the product, currently composed of original and mild, into ‘Dark,’ ‘Single origin’ and etc. responding to customers’ tastes. Based on this, Ediya also has a plan to launch B2C coffee beans distribution and RTD(Ready to drink) coffee apart from original B2B coffee beans distribution. In case of RTD, it will be developed in Ediya Coffee Lab, and completely differentiated from original product to make it as a product never seen in domestic.
Ediya Coffee has been consistently observing by examination of various matters, such as market research through field survey or business partner, for the last few years to go abroad. The first priority consideration is creation of the actual profit rather than nominally pushed to going abroad. A combination of lessons gained from foray into China in 2005 and Thailand market development process recently is applied to making this result.
Thus, Ediya is working on groundwork for entry to abroad carefully than ever. Since 2012, it already has been educating franchise sites by employing experts on foreign languages such as English and Chinese, and it keeps educating with replacing manpower. It also closely analyzes global brands’ successful cases of overseas expansion to draw core abilities. Following is the plan of overseas expansion established through it.
The plan is preceded into four steps; the first steps (the first half of 2016) are overseas market research and examination of overseas expansion method. The second steps (the second half of 2016) are selection of a country for overseas expansion and in-depth market research of the country. The third step (the first half of 2017) is opening of the first headquarter(company-operated store) abroad. The fourth step (the second half of 2017) is opening of the second franchise abroad. The company is already examining the possibility of expansion to all parts of the world such as Southeast Asia or the Americas, and it will firstly sort out several countries during the first half year.
It is going to open more than 200 stores until 2020, and it has a goal of getting more than 100 billion won. It is examining expansion to abroad in all the available ways including independent expansion in the form of headquarter(direct control) and cooperation with foreign partner business (master franchise, joint venture).
Meanwhile, Ediya Coffee is developing various contribution businesses in a meaning of donating more than 2% of profit annually to society. From 2016, it will spend more than 3% of profit on social contribution business, and expand Ediya mate learn fare to a scale of 300 million won annually. It also keeps extending policy for supporting franchisers; for example, supporting university entrance fees of franchisers’ children (two million won per child).
In addition, it extended annually progressed Africa well supporting business to 50 million won in 2015, and the business will be progressed this year.
(In addition, the business of support annually to develop wells in Africa is extended to 50 million won in 2015 and the business will be progressed this year.)
Ediya also continues culture-support businesses such as supporting hearing-impaired baristas and sponsoring independent films and young artists. It will keep pushing forward and extending social contribution businesses so that it can achieve ‘coexistence’ with society in many directions.
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