Kimchi, Koreans’ staple food throughout millennia, has become a new, lucrative revenue source for the country’s luxury hotel chain operators with the hospitality industry’s household names flocking to the premium kimchi market.
Paradise Co., South Korea’s resort and casino operating conglomerate, last week rolled out kimchi products under its own hotel brand.
The 1,500 bags of 4-kilogram kimchi were sold out on the first day of its sale, and an additional 1,200 bags were also snatched immediately on the second day, according to sources in the country’s hospitality industry on Tuesday.
Paradise kimchi enjoyed high demand thanks to its premium image on top of the country’s overall strong demand for premade kimchi due to a recent surge in its main ingredient napa cabbage's price.
However, Paradise is a latecomer in the premium kimchi market in Korea, going after the market’s frontrunners Walkerhill Resorts & Hotels and Josun Hotels & Resorts Co.
Walkerhill Resorts was the country’s first hotel chain to introduce its own branded kimchi in 1997, followed by Josun Hotels in 2004.
WALKERHILL AND JOSUN ON THE FRONTLINE
The leaders first offered their kimchi products made by themselves. But as their premium kimchi sold like hotcakes, they have recently started sourcing kimchi from their contractors and selling them under their private brands (PBs).
In response to the high demand, they also have diversified their sales channel, including TV shopping channels, online marketplaces, department stores and big-box marts. In the past, they sold their spicy fermented cabbage dishes through their hotel stores.
Paradise has decided to jump into the country’s premium kimchi market as luxury hotel kimchi sales have rapidly grown in recent years despite their high price tags.
Josun Hotels’ kimchi sales in 2023 zoomed 42% from the prior year, outpacing the hotel operator’s entire sales growth of about 15%.