Non-Food Sector Outpaces Food Sector
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Non-Food Sector Outpaces Food Sector
CJ Group¡¯s diversification moves to expand logistics sector a great success with sales surpassing food sector

30(Sun), Sep, 2012

CJ Group (Chairman Lee Jae-hyun)  saw its logistics business forge ahead of the food sector in the first half of this year, which is a surprise because the group had just started its new sector of business, accounting for around 40 percent of the group¡¯s total sales in the first half, the group said recently.
The group¡¯s logistics sector includes CJ Home Shopping, CJ GLS, CJ Korea Express, and CJ Olive Young, whose combined sales in the first half outperformed the food sector, which includes Cheiljedang, CJ Foodville, CJ Freshway, and others.
This is the first time the non-food sector has overtake n the food sector in sales since 1953 when the group launched its operation with Cheiljedang, a sugar and food maker, as its key business sector.
Sales for the food sector amounted to 4.269 trillion won in the first half while the non-food sector recorded 4.579 trillion won in sales in the same period, claiming a 39.8 percent share of the group¡¯s total sales.
The group took over CJ Korea Express, a trucking company, late last year, whose sales helped the group¡¯s non-food sector overtake those of the food sector for the first time in 14 years since the group first launched the distribution business in 1998. The non-food sector¡¯s sales last year amounted to 28.9 percent of the group¡¯s total sales, the group said.
Officials of the group said their push to develop the non-food sector over the past 14 years has been a success with the synergy between CJ GLS and CJ Korea Express taking a firm hold. The gap between the two sectors is likely to expand as the contents and bio pharma business continue to expand in the days ahead, the group said.
The group began to diversify its operations by taking up distribution businesses in 1998 with CJ GLS as a start, 39 Home Shopping in 2000, now called CJ Home Shopping, On Media in 2010, and Korea Express in 2011. In 1996, the group opened the CGV multiplex theater chain and took over Mnet, a music channel, in 1997, entering the entertainment and media sector in which it has been investing in continuously since then.
The group also has been operating the bio tech sector with CJ Cheiljedang as the mother company, the entertainment and media sector with CJ E&M, CJ CVG, CJ Hellovision ¡Æ¢â  four business sectors which for the first time exceeded 60 percent of the group¡¯s total sales without including food.
Since overtaking the food sector in 2009 for the first time, the growth of the non-food sector has been rising, rapidly widening the gap with the food sector further.
The sales of the bio pharma sector amounted to 999 billion won and the entertainment & media sector reached 1.473 trillion won, accounting for 8.7 percent and 12.8 percent of the total sales of the group in the first half, respectively.
The group¡¯s relentless efforts in strengthening its key businesses in food & food service, bio pharma, entertainment & media, and home shopping & logistics have enabled CJ to grow into a global group with world-class competitiveness, the group said.
CJ has been recognized as an ever-changing company creating new imagery and as a trustworthy company, always there providing its clients with health, enjoyment, and convenience. CJ will always be there as a trustworthy corporate citizen, a global company loved around the world, and as a comprehensive company focused on life and culture, enriching people¡¯s lives and bringing more happiness.
   
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