By Choi Sung-jin
Orion, a Korean confectionary company, spent about 50 billion won ($42.7 million) on food-tasting promotional events at more than 4,000 Chinese supermarkets last year.
"Most of our competitors reduced their marketing outlays, but we made aggressive efforts in China, setting up display counters exclusive for Orion products at an increasing number of stores there," said a company official.
And the strategy seems to be bearing fruit. Orion's sales in the third quarter jumped 12.6 percent to 370.8 billion won in China, compared with a 6-percent drop in the sales of Wrigley, a U.S. manufacturer of chewing gum and the leader in the Chinese market.
The company attributes its success to thorough localization of products to suit the tastes of Chinese consumers. Orion's potato chips, for instance, are being sold in five different tastes, three of which don't exist in Korea. Many other Orion products sold in China are not found in Korea, or are made using different recipes than those sold on the domestic market.
Likewise, of approximately 6,500 employees in Orion's Chinese offshoot, only 43 are Koreans, reflecting the company's localization strategy. Some Chinese people reportedly think that Orion is a Chinese company. Out of the company's sales, the Chinese market's portion exceeds Korea's, 55 percent to 32 percent, respectively.
"Our goal is to emerge as the market leader in China by 2021 through increasing yearly sales by 10 percent," the executive said.
Orion, a Korean confectionary company, spent about 50 billion won ($42.7 million) on food-tasting promotional events at more than 4,000 Chinese supermarkets last year.
"Most of our competitors reduced their marketing outlays, but we made aggressive efforts in China, setting up display counters exclusive for Orion products at an increasing number of stores there," said a company official.
And the strategy seems to be bearing fruit. Orion's sales in the third quarter jumped 12.6 percent to 370.8 billion won in China, compared with a 6-percent drop in the sales of Wrigley, a U.S. manufacturer of chewing gum and the leader in the Chinese market.
The company attributes its success to thorough localization of products to suit the tastes of Chinese consumers. Orion's potato chips, for instance, are being sold in five different tastes, three of which don't exist in Korea. Many other Orion products sold in China are not found in Korea, or are made using different recipes than those sold on the domestic market.
Likewise, of approximately 6,500 employees in Orion's Chinese offshoot, only 43 are Koreans, reflecting the company's localization strategy. Some Chinese people reportedly think that Orion is a Chinese company. Out of the company's sales, the Chinese market's portion exceeds Korea's, 55 percent to 32 percent, respectively.
"Our goal is to emerge as the market leader in China by 2021 through increasing yearly sales by 10 percent," the executive said.
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