Overseas, We Are the Leaders of K-Food... Japan's 'Micho' and China's 'O! Gamja' Are Doing Well
Micho, 'K-Beauty' Drink Popular in Japan
Last Year's Sales 130 Billion Won, 50% Increase
Oh!Gamja, 220 Billion Won Sales in China
Success as Representative Snack Through Localization
[Asia Economy Reporter Lim Hye-sun] There are products that perform better overseas than domestically. CJ CheilJedang’s fruit fermented vinegar ‘Micho’ and Orion’s ‘Oh! Gamja’ are the protagonists.
Micho Surpasses 100 Billion KRW in Sales in Japan
According to CJ CheilJedang on the 2nd, Micho’s sales in Japan last year amounted to 130 billion KRW (based on consumer price conversion). This represents a 50% increase from 86 billion KRW the previous year, surpassing 100 billion KRW for the first time. Compared to sales of 5 billion KRW in 2015, this is more than a 25-fold increase.
Micho pioneered the ‘fruit vinegar’ category in Japan’s drinking vinegar market, which had been centered on ‘black vinegar.’ Micho is a 100% fruit fermented vinegar made by naturally fermenting only fruit juice.
When Micho first entered the market, it focused on ‘promoting Micho’s unique advantages’ to Japanese consumers who were unfamiliar with fruit fermented vinegar. It targeted a niche in the Japanese drinking vinegar market with the popular ‘K-Beauty’ concept at the time. Additionally, it leveraged Japan’s ‘wari culture,’ where alcohol is mixed with beverages, in its marketing. Taking advantage of Micho’s diluted consumption characteristic, various ways to enjoy it were introduced, such as Micho Ade, Micho Gurteu, and Micho Cocktails to suit different tastes.
As awareness grew, the lineup was expanded and distribution channels were broadened, focusing on drugstores and large supermarkets frequented by Micho’s target demographic of women in their 20s and 30s. Last year, distribution channels more than doubled compared to the previous year, increasing accessibility.
Micho also contributed to the growth of Japan’s drinking vinegar market. The market, which was around 200 billion KRW in the early 2010s, grew to 300 billion KRW last year. Mizkan, the leading vinegar company in Japan, entered the fruit fermented vinegar market in February last year by launching five fruit fermented vinegar products. This indicates that Japanese companies are paying attention to the growth trend of fruit fermented vinegar.
Oh! Gamja Sells Better in China
Oh! Gamja has established itself as a representative snack among Chinese consumers. Last year, Oh! Gamja’s sales in China reached 220 billion KRW, meaning one out of every three Chinese people among the 1.4 billion population consumed it. Domestic sales are around 20 billion KRW. The key to its successful foothold in the Chinese market was a thorough localization strategy.
Orion opened its Beijing office in 1993 but saw sluggish results until it adopted a thorough localization strategy after 2002, quickly establishing itself in the market. Oh! Gamja, which began sales in China in 2006, recorded sales of 135 billion KRW in 2012 and surpassed 200 billion KRW in 2015, maintaining steady popularity since then. Orion diversified its product lineup beyond the original flavor to include tomato, steak, chicken, and honey milk flavors, reflecting Chinese consumer preferences. Besides Oh! Gamja, products like ‘Choco Pie,’ ‘Choco Song-i,’ and ‘Goraebab’ have also achieved success in the Chinese market.
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A food industry official said, "There is an increasing number of products leading the market by capturing the tastes of demanding overseas consumers," adding, "This year, companies plan to launch products that have succeeded domestically into overseas markets."
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