[Click eStock] From Parasite's 'Jjapaguri' to COVID-19... Nongshim Soars on Ramen Trust

Signs of Prolonged COVID-19... Online Sales Growth of Ramen as Essential Goods
Marketing Effect of 'Jjapaguri' from Movie Parasite Increases

Nongshim's Jjapaguri Promotional Material in the UK

[Asia Economy Reporter Minwoo Lee] Nongshim's major ramen products are showing strong performance. The popularity of 'Jjapaguri (Jjapaghetti + Neoguri)' following the success of the movie 'Parasite' and increased indoor activities due to the novel coronavirus disease (COVID-19) appear to be driving sales growth.

On the 24th, Hi Investment & Securities upgraded Nongshim's investment rating to 'Buy' and raised the target price from 310,000 KRW to 380,000 KRW. This is because the ramen business sector of Nongshim, which had been somewhat sluggish, has recently shown rapid growth.

In fact, Nongshim's major ramen products are simultaneously performing well. Lee Kyung-shin, a researcher at Hi Investment & Securities, explained, "Based on content marketing that has been actively utilized compared to before, the market interest in Ansungtangmyun has remained steady, and the 'Jjapaguri' effect from the movie 'Parasite' is also impressive. Additionally, the new product 'Neoguri RtA' is performing well in the cup noodle market, so Nongshim is standing out in the recent ramen market, which lacks large new products, enabling external growth."

The prolonged impact of COVID-19 domestically and internationally, which has led to reduced outdoor activities, is also influencing this trend. Online sales of ramen, which is a staple product, are increasing. In particular, in China, there is a possibility of further recovery of market dominance that had declined due to the previous 'Hanhanryeong' (THAAD) restrictions. It is assessed that the existing strategy of expanding into the western inland region could accelerate.

Additionally, the movie 'Parasite' is becoming a marketing point for Nongshim products overseas. The researcher noted, "Global search interest for Jjapaguri (Parasite Ramdon) has been increasing since this month, and the main regions are North America, Southeast Asia, and Australia, which overlap with Nongshim's key existing markets. Considering that production infrastructure is already established in these regions, rapid marketing effects can be expected. Furthermore, the brand environment that can extend purchasing power not only for this single product but also for other products is positive from a mid- to long-term growth perspective."

This content was produced with the assistance of AI translation services.