Korean company considers M’sian plant

Koo (left) and Hoe during the joint-venture signing ceremony between Cuckoo Electronics and Cuckoo International Sdn Bhd in Seoul, South Korea.

Buoyed by positive response to its products, home appliance manufacturer mulls over possibility of setting up factory

SOUTH Korea’s top home appliance maker, Cuckoo Electronics, is considering setting up a plant in Malaysia following encouraging consumer response to its range of healthy lifestyle products.

Pleased with the brand’s fast growth in Malaysia after it commenced operations in Kuala Lumpur in December 2014 and hit the sales target of RM10mil in 2015, Cuckoo Electronics chief executive officer Brian Koo Bon Hak said the company was planning more product launches.

“We are focusing on our water purifier system and pressure cooker for the time being, as we want customers to be aware of the importance of good quality water and healthy innovative cooking.

“Malaysian consumers are health-conscious and we saw the opportunities in the Malaysia market.

“I am happy with the positive response and I look forward to seeing more satisfied customers in Malaysia,” said Brian when met after a joint-venture signing ceremony between Cuckoo Electronics Co Ltd (CKE) and Cuckoo International Malaysia Sdn Bhd (CKI) in Seoul, recently.

“We also have plans to set up a manufacturing plant in Malaysia should the sales be overwhelming in the near future,” he added.

Brian said it had been Cuckoo’s aspiration to go international as a quality home appliance manufacturer.

“We are doubling capacity to 100,000 units from the current 60,000 for both rice cooker and water purifier to meet the increasing market demand. Locally, we are expanding with a new manufacturing plant in South Korea, which will be completed by the end of this year,” he said.

In South Korea, Cuckoo is the top-selling brand for rice cookers with exports valued at US$16.3mil (RM71.5mil) in 2014, a leap of 85.3% from 2013.

It recorded sales of more than 300,000 units a month in 2014 and had the highest market share in South Korea for 17 years.

It currently has 73% market share in the country, with more than 2,000 stores and branches.

Cuckoo Electronics was founded by businessman Koo Ja-shin in 1978, manufacturing rice cookers for LG and Philips before it started its own brand marketing in 1998.

They offer a variety of healthy lifestyle products, including air purifiers, massage chairs and bidet seats.

Brian recalled that when the company started its own brand marketing in 1998, some wholesalers and retailers hesitated to handle the brand. Fortunately, some were aware of Cuckoo’s quality and placed their orders.

“That was the starting point of our sales and we strove hard,” he said.

Kim is the new brand ambassador for Cuckoo’s international market.

Cuckoo’s fame rose quickly and the brand emerged as No 1 in South Korea the next year.

“Rice cooker, especially pressure cooker, is not easy to make. We have never been satisfied with our products, therefore we keep changing and upgrading our technology, features, specifications, designs and most importantly, quality,” he said.

The joint-venture signing ceremony between CKE and CKI also featured popular South Korean actor Kim Soo-hyun, who is the new brand ambassador for its international market.

As someone who uses the products, Kim is expected to bring positive growth to the brand with his young, healthy and sleek image.

“I think 99% of Koreans know the brand Cuckoo as a representative national brand for small home appliances.

“It is an honour to be the ambassador of Cuckoo Electronics, Korea’s No 1 brand,” he said.

Kim has played lead roles in the television drama Moon Embracing Sun and in the hit movie Secretly, Greatly. In addition, Kim’s portrayal of Do Min-joon, who lived for more than 500 years, in the series My Love from the Star, has been extremely popular.