CJ Group Chairman Lee Jay-hyun. (Photo: CJ Group)

CJ Group is aiming to realize its vision “Global CJ” that calls for at least three of its businesses to be world No. 1 brands. The group plans to push a two-track strategy by aggressively exploring global markets and bracing for a sagging global economy this year.

The move may be construed as the group’s scheme to expand global business presence by shoring up unmatched capabilities, while at the same time strengthening fundamentals and enhancing profitability through constant structural innovation to brace for a recession and a low growth rate.

These strategies were materialized at the group’s global management strategy meeting, convened in Los Angeles last Dec. 13.

CJ Group Chairman Lee Jay-hyun told the meeting of major group executives and subsidiary CEOs that CJ’s ultimate goal is rising to a global no. 1 lifestyle and culture company. He urged them to be more earnest, since the group’s future will hinge on global achievements in the next one or two years.

The group made all-out efforts to secure competitiveness through the restructuring of major businesses before the two-track strategy is implemented in full force. CJ Cheiljedang integrated the four businesses - bio, biological diversity, food and materials - into the bio and food businesses.

CJ Cheiljedang made CJ Logistics its wholly owned subsidiary by additionally acquiring a 20.1 percent stake in the latter. The group inaugurated CJ E&M, a merger of CJ O Shopping and CJ E&M, heralding the nation’s convergence, multi-disciplinary content commerce company.

CJ ‘s global businesses are on a roll. CJ has already set not only China and Vietnam, but also the Americas, as core strategic regions to expand global business presence. Early on, the group entered the United States, Brazil and Mexico in which it secured a foothold in the food, bio, logistics and culture fields to make a leap forward. The group has seen businesses, particularly bio, food and logistics, chalking high growth rates. Of late, CJ has accelerated efforts to expand its global presence through big M&As.

CJ Cheiljedang has the biggest market share in the U.S. mandu (Chinese dumpling) market with an explosive growth rate.

The company has already built five production centers, including ones in Los Angeles and New Jersey. It is now flexing its muscles by releasing diverse home-made recipe products on top of Bibigo mandu. In 2017, CJ Cheiljedang acquired Braziliang soy protein maker Selecta, one of the world’s largest producers of soy protein concentrate (SPC), which is used to make animal feed.

The company is concentrating on efforts to maintain a global leadership by investing into the Brazilian SPC maker to expand a methionine production facility.

CJ Logistics is aiming to rise to a global top five logistics company. To this end, the company is implementing growth strategies now that it is the sole Korean logistics company to attempt global M&As targeting logistics companies around the world and establish joint-ventures.

The company strives to develop and offer differentiation services by making the most of advanced convergence and multi-disciplinary technologies and Korea’s biggest network and knowhow.

CJ E&M is spreading the charm of K-culture by hosting KCON, the world’s largest K-culture convention and music festival, and the Mnet Asian Music Awards, Asia’s largest music festival.

MAMA, marking the 10th anniversary, took place in Korea, Japan, and Hong Kong, establishing itself as one of Asia’s largest music festivals.

CJ Looks to Rise to Global Top Position by 2030

Group Chamn. Sohn calls for fresh growth in Korea and abroad, based on unmatched capabilities in New Year’s message
CJ Group Chairman Sohn Kyung-shik delivered a New Year message at the Manpower Institute in Jung-gu, Seoul, on Jan. 2, in which he called for fresh growth in Korea and abroad, based on CJ’s “unmatched capabilities.”

Chairman Shon said, “Businesses, still coming closer to global no. 1 position, have to focus on securing unmatched capabilities and shake up the existing competition structure through structural reform and strengthening of fundamental changes.”

“This is a very important year for our group’s global ascent,” he said.

“This year, the global economy is expected to undergo slowing growth, and the domestic economy is predicted to have more difficult hardships than last year, but (we have to) aggressively expand businesses not only on the domestic but also on the global market despite a bumpy management environment,” he said.

Chairman Shon reaffirmed CJ’s determination to achieve the goal of rising to a global top position by 2030. “The ultimate goal is ‘World Best CJ’ that will evolve into a global No. 1 life and culture company, and CJ’s rivals are Nestle in the food sector, DHL in the logistics field and Disney in the entertainment sector,” Shon said.

 
He urged CJ executives and staffers to translate a crisis into an opportunity through endless evolution and innovation, and to be armed with a sense of determination to be reborn as world-class manpower.