Orion, Competing with Practical Snacks in Korea, China, and Vietnam in 2020

Korean 'Chicken Pop' and 'Gamjasok Gamja' 1000-Won Value Snacks Popular
Vietnam Small-Pack Potato Snacks Account for 70% of Corporate Potato Snack Sales
China Launches Retail-Only Small-Pack Value Products like 'Chicken Pop' and 'Oh! Gamja Mini Star'

[Asia Economy Reporter Lee Seon-ae] Orion announced on the 14th that it will target the global snack market with its "value-for-money snacks" in China and Vietnam following its domestic success. The global sales strategy for 2020 is essentially "cost-effective value snacks."

Value-for-money snacks are a lineup of cost-effective snacks introduced by Orion starting with the re-release of "Chicken Pop" in 2019, lowering the price per gram and offering an affordable price of 1,000 won at convenience stores. This product was planned based on the trend of cost-effectiveness continuing amid the economic downturn, where young consumers carefully consider both price and quality when purchasing products. Chicken Pop quickly gained enthusiastic responses among the 10-20 age group upon its release, becoming a popular product with annual sales exceeding 20 billion won. One reason for its popularity is the relatively low psychological resistance to the 1,000 won price point when choosing products. Recently, Orion strengthened its value snack lineup by newly introducing "Potato Inside Potato," which features a unique dual texture.

In China, the strategy is to increase shelf share in third- and fourth-tier cities by launching small-sized, cost-effective products exclusively for general retail stores. In April, four types were released as value snacks: "Chicken Pop Dakgangjeong Flavor," "Chongqing Laziji Flavor," "Oh! Potato Mini Star Lamb Skewer Flavor," and "Tomato Mala Flavor." These were launched at a localized price of 2 yuan (approximately 350 won), making them affordable, and featured the characteristic elongated package design of value snacks for convenience, allowing consumers to hold and eat with one hand. The products are displayed hanging on hooks in a row, maximizing space utilization within small stores and increasing consumer exposure. The Kkobuk Chip, which has sold over 80 million packs since its launch in May 2018 under the local name "Langlige Lang (浪里?浪)," will also be added to the value snack lineup to expand sales.

In Vietnam, small-sized potato snack products such as "Poca Chip," "Swing Chip," and "Oh! Potato" are popular, accounting for 70% of the local subsidiary's total potato snack sales, leading to an increase in small-sized product launches. The localized price of 6,000 dong per pack (approximately 300 won) makes it easy for consumers to purchase without hesitation. Considering that general retail stores in Vietnam display many products on narrow shelves, the strategy of launching small-sized products that can be sold hanging in stores has been effective. Additionally, the "Good Packaging Project," which increases product quantity without changing the price, was expanded to Vietnam, increasing snack product volume by 20% and enhancing cost-effectiveness, receiving high praise from local consumers.

An Orion official said, "The 'value-for-money snacks,' which have increased consumer satisfaction, are loved not only domestically but also in overseas markets, driving growth in the snack category," and added, "As the cost-effective purchasing trend expands amid the global economic downturn, we will continue to expand the value snack lineup."

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