Ginseng maker to localize sales strategies for overseas markets

Korea Ginseng Corporation's “Red Ginseng World Map” / Courtesy of KGC

By Kim Jae-heun

Celebrating the New Year holiday in Asia, demand for Korea Ginseng Corporation's (KGC) red ginseng in the region is increasing as a popular gift.

The rising popularity of Korean TV series, along with the increasing awareness of health and wellness among young people here, have driven this trend. The ginseng company's effort to diversify its retail channels, as well as the introduction of a variety of types of the herbal product, have played key roles too.

KGC has been seeing a surge in its ginseng product sales. Compared to its business performance in 2019, before the pandemic, its revenue increased by 4.8 percent in 2020. Until the third quarter of 2021, KGC's sale had also soared by nearly 20 percent year-on-year.

The ginseng company recently unveiled the “Red Ginseng World Map,” which shows the best-selling product based on sales records according to various overseas markets. KGC had a particularly notable achievement with its “Everytime,” a red ginseng stick product that is easy to carry and eat, which became the top seller in Japan, Taiwan, Hong Kong, Malaysia, Singapore and Vietnam.

However, China is KGC's biggest overseas market. China has long been referring to Korean red ginseng as “Goryeosam” as distinguished from its own. There, Goryeosam is recognized as a high-quality medicinal product.

KGC operates its ginseng brand, Cheong Kwan Jang, which sells Korean red ginseng root for triple the price compared to Chinese herbal products. According to KGC, Chinese customers recognize the quality of Korean ginseng and are willing to open their wallets to purchase it as a gift to their family and friends.

Sales of Korean red ginseng skyrocket by more than 20 percent during the Lunar New Year, celebrated in both Korea and China usually every January and February. Sales of KGC's best-selling ginseng root, in particular, rise more than 20 percent in January and February, as a gift for the elderly in China.

Red ginseng is also popular in Taiwan and Hong Kong, where it has been gaining popularity recently among the young generation with the launch of Everytime. In the past, the root had been perceived there as an expensive health supplement for senior citizens.

The United States is the second-largest market for Korean ginseng outside of Asia. Cheong Kwan Jang operates over 30 stores nationwide. Last September, KGC's ginseng brand opened a temporary “Ginseng Museum Cafe” in New York, to offer a new experience for people there who are unfamiliar with Korea red ginseng products.

“Red ginseng is a cultural pride of Korean people and part of the meaningful heritage handed down by our ancestors. The company will continue to do its best to promote the product to the world with a sense of its mission to represent the country,” a KGC official said.