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SPC, CJ bakery war reignites in China

March 31, 2014 - 20:54 By Korea Herald
Paris Baguette, the nation’s No. 1 bakery chain owned by SPC Group, has recently appointed Jeon Ji-hyun, the lead actress of drama sensation “My Love from the Star,” as the brand’s new model who will appear in TV and print advertisements from April 5.

The move comes after rival Tous Les Jours’ hit an unexpected jackpot in China where sales almost doubled over the past weeks thanks to the soaring popularity of its commercial model Kim Soo-hyun, the drama’s other star.

“In China, Paris Baguette used to be more widely known among customers due to its wide network of some 140 stores. But now customers are lining up in front of Tous Les Jours stores to get the leaflets with Kim Soo-hyun’s photos,” said an industry source. 
Customers enjoy brunch at Tous Les Jours Boulangerie & Bistro in Wangjing district, Beijing, Monday. (CJ Foodville)

But with Jeon, Paris Baguette seems to be have been given a good chance to reverse the trend, hinting at another round of competition between the two Korean rivals in the crucial Chinese bakery market.

In China, the demand for high-end caf and bakeries are surging along with the nation’s income levels, but many French big names such as Paul were forced to withdraw as they failed to appease the local tastes.

In the meantime, the two Korean brands, taking advantage of the emerging K-pop sensation in the country, started entering the market in the mid 2000s by developing bakery items specialized for the Chinese palate.

Paris Baguette, which boasts 124 stores in China alone, is expected to up its offensive for more market share, while Tous Les Jours with only 45 stores will be focusing on its premium strategy.

On Monday, Tous Les Jours, owned by CJ Foodville, opened its first premium store “Tous Les Jours Boulangerie & Bistro” in the Wangjing district of Beijing.

During a 10-day trial operation before the official opening, the store attracted some 1,000 visitors a day, despite setting prices about 15 percent higher than the brand’s other outlets, said a CJ spokesperson.

“The space itself offers a new lifestyle. Starting with this store, Tous Les Jours will become the most premium bakery chain in China,” said Noh Hee-young, the strategic advisor of CJ Group’s brand communication and a celebrated tastemaker.

By Lee Ji-yoon (jylee@heraldcorp.com)