Cuckoo home appliances post record sales in US, Vietnam

South Korea’s leading kitchen appliances maker Cuckoo Holdings Co. has posted record growth in overseas sales, largely driven by successes in the US and Vietnam.

Cuckoo is the country’s rice cooker market leader with around 70% share and has a strong presence in Southeast Asia with offices in Indonesia, Malaysia and Vietnam.

The group’s home appliances manufacturer Cuckoo Electronics Co. and its rental business unit Cuckoo Homesys Co. posted annual revenue growth of 56% and 19% in 2020, respectively, according to the company on Apr. 2.  

Cuckoo Electronics generated overseas revenue of 59.5 billion won ($52.7 million) last year compared to 38.1 billion won ($33.8 million) in 2019, whereas Cuckoo Homesys’ overseas revenue came in at  310.1 billion won ($275.1 million) last year versus 260.6 billion won ($231.1 million) in 2019.

The US and Vietnam were the main drivers of growth, with Cuckoo Electronics’ 2020 Q4 sales in the US rising by 65% and Cuckoo Homesys’ 2020 Q4 sales in the US rising by 432% from the same period the previous year.

Cuckoo Electronics’ Vietnam office also enjoyed a similar level of growth for the whole year of 2020, with a 401% rise in revenue compared to the 2019 figure.

“Our new products, customized to serve local needs in the US and Vietnam, have become extremely popular among consumers who increasingly prefer Korean-made home appliances,” said a Cuckoo representative.

The company also said that product diversification was a key success factor in the US, launching a multi-cooker model that not only can cook rice and porridge but also make a diverse range of dishes using slow cooking, brown frying, soup making and steam cooking options.

On top of the product diversification, Cuckoo also expanded its distribution channels in the US to further drive sales.

In Vietnam, where the main staple is rice just as in Korea, Cuckoo had bolstered marketing initiatives of its popular Twin Pressure rice cooker, including the establishment of a digital marketing platform for younger consumers.

Cuckoo said it will expand its lineup of rice cooker offerings in Vietnam, and also launch new blender and dish dryer models as well.

“We will continue to expand our presence in the fast-growing US and Vietnam markets by offering a diverse range of kitchen appliances truly tailored to local consumer needs,” said the company official.

Write to Hee-Eun Yoon at soul@hankyung.com
Daniel Cho edited this article.