From the suicide of Korean coffee Wang Jiangxun, we can see the highly competitive coffee market in Korea.

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Many blogs and tourists say that when it comes to South Korea, they have to make a pilgrimage to different coffee shops in Seoul, and different coffee shops have also become tourist hotspots. Moreover, because of the Korean Wave, many chain coffee shop brands have also targeted Korean Wave products such as TV dramas and variety shows for different forms of product placement to promote Korean coffee brands to local and overseas audiences. While we are enjoying this tourism culture, has it ever occurred to us that because of this coffee market, the suicide of a "coffee king" with many chain brands has become sensational news in South Korea?

On July 25, Kang Hoon, a representative of KH Company, which owns famous Korean coffee chain brands such as Hollys Coffee and Caffe Bene, was found to have committed suicide in the bathroom at home, according to the Seoul Ruicao Police Department. Before committing suicide, he sent a text message to his friend saying that he was "very tired" because of the company's operational problems, but why did he, who owns a large coffee kingdom, still bear the burden of this competition and take his own life? What is worth studying is not the real motive for his suicide, but how he built the Korean coffee shop market, and then see what is going on behind the Korean coffee shop that we love.

Jiang Xun promoted Starbucks Coffee in 1997, then set up a local coffee brand "Hollys Coffee" with friends, resold the brand to other companies in 2003, and established Caffe Bene in 2008. The brand's development boomed, opened nearly 500 branches in an instant, and even introduced American coffee to coffee shops, creating a beverage culture that Koreans must drink today. Taking advantage of the emerging market of this coffee shop, many companies have also set up different coffee shop chains in an attempt to get a share in this hot market, which has also made the coffee market in South Korea more competitive. According to statistics, as of April this year, there were about 90,000 coffee shops (including chains and their own businesses) in South Korea, more than double the figure of three years ago. Now the coffee shop craze has evolved into two features, one is a chain of high-end coffee shops like Caffe Bene, and the other is inexpensive coffee shops, such as the most famous Ediya Coffee, whose sales growth cannot be ignored, with sales of 78.5 billion won in 2013 and 116.2 billion won in 2014. In addition, foreign coffee brands also have a certain competitive power in South Korea. It can be seen that the coffee market started in South Korea by the brand founded by Jiang Xun, and caused the phenomenon of "a hundred schools of thought contend" in the coffee industry.

However, in the face of fierce competition, there will naturally be differences. In the eyes of merchants, although sales or profit is one of the main indicators. According to the data, of the 90,000 coffee shops, only 50% can survive for one year or more, that is, the other half face financial difficulties or even the crisis of bankruptcy as soon as they are established. Even if they continue to introduce and develop new products, there will still be no improvement in profits and it is inconceivable that they will suffer losses.

Some people may think that Jiang Xun, as the "king of the Korean coffee industry", absolutely does not need to worry about his income problems. As a matter of fact, its chain brand has also suffered a loss. After serving as a representative of Caffe Bene in 2010, KH was established and Mangosix was established the following year. Since 2015, according to Korean media, the company and brand managed by Jiang Xun have suffered losses in 2015, and the acquisition of two coffee shops last year cannot help to recover the cost. KH's sales have also been reduced by half compared with last year, so it can only apply to the court for bankruptcy. This process reflects that even if there are chain brands, they may not be able to gain a foothold in the face of Korean coffee competition.

Kang Hoon's death caused a sensation in South Korea. in addition to his position in the coffee industry, it is also worth discussing the future of his famous coffee brand. In addition, whether there will be a competitive change in the Korean coffee market is also an issue of concern.

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