Former Starbucks Korea CEO leads growth of Shinsegae brand JAJU

The Korea Times

The Korea Times

Business

Wed, December 6, 2023 | 00:40

Companies

Former Starbucks Korea CEO leads growth of Shinsegae brand JAJU

Posted : 2022-08-09 08:52

Updated : 2022-08-10 11:08

By Kim Jae-heun

Former Starbucks Korea CEO Lee Seok-koo, who led the prosperous coffee shop franchise in Korea for 11 years until 2019, is reviving Shinsegae International's lifestyle brand, JAJU.

Shinsegae International co-CEO Lee Seok-koo / Korea Times file

JAJU's sales last year are predicted to have reached 270 billion won ($206.7 million), recovering its losses from the earlier part of the COVID-19 pandemic.

Lee, also the co-CEO of Shinsegae International, expanded JAJU's stores in the country from 160 in 2017 to 241 as of first quarter of this year, too.

Local securities firms predict that JAJU will achieve a turnaround this year, putting an end to its three years of consecutive operating losses since 2019.

Lee is seen as a legendary figure in the retail business. He established Starbucks as the No. 1 coffee shop franchise in Korea through a number of successful marketing strategies.

Before, there had been doubts about the 73-year-old executive, as some believed he was too old and that a younger executive should lead Shinsegae International's lifestyle brand.

"I think what Lee has achieved with Starbucks Korea has gained trust from Shinsegae Group's family owners. Despite his older age, many retail firms wanted to scout him after he retired from the American coffee shop franchise company," a Shinsegae Group official said.

When Lee first came to JAJU, he focused on the pajama business. The CEO predicted that the sleepwear business would prosper during the COVID-19 pandemic, and he also introduced the very first boxers for women here. Last year, JAJU made over 30 billion won in sales just from underwear items.

According to Kyobo Securities, fashion products accounted for 43 percent of JAJU's revenue in the second quarter of this year. JAJU also withdrew its overseas business in Vietnam, which suffered losses in the first half of this year, while strengthening its online sales.

"Lee always emphasized the importance of visiting the field and reflecting customers' feedback. He drew big pictures based on his understanding of the business. When he decides on what he plans to do, he will push forward with it aggressively," the official added.

jhkim@koreatimes.co.kr