DAEJEON < invest Korea

[Photo by Yonhap]

According to Pulse by Maeil Business News Korea,

Sungsimdang, a Western-style bakery in Daejeon, South Korea, outperformed major competitors, including Paris Baguette run by SPC Group and Tous les Jours owned by CJ Foodville Co., in domestic operating profit during the previous year, thanks to a compelling pricing strategy that resonated with consumers.

Founded in 1956 as a small local bakery near Daejeon Station, Sungsimdang has since expanded to four branches across the city, adhering to a management principle of focusing solely on Daejeon. The brand’s allure lies in its ability to provide high-quality bakery foods at affordable prices with signature items include the fried Soboro priced at 1,700 won ($1.24) per piece. The Strawberry Siru Cake, weighing 2.3 kilograms and filled with strawberries, is priced at 43,000 won.

The bakery gained popularity among visitors from all over the country largely due to its value-for-money offerings. Despite the lack of stores outside Daejeon, the bakery targets customers across the country via its online platform, Sungsimdang Mall, a move that also likely bolstered its financial performance.

Analysts said the bakery‘s impressive 25 percent operating profit margin in 2023 is due to its cost-efficient operations. Unlike nationwide chains that operate a large number of stores, Sungsimdang has a total of four branches in Daejeon, leading to savings in operational costs. Its 2023 expenses amounted to 27 billion won, substantially lower than Paris Baguette’s 899.3 billion won and Tous les Jours‘ 315.7 billion won.



By Kim Geum-yi and Han Yubin

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (April 22, 2024)