The latest market analysis shows a significant progress in South Korea's traditional kimchi industry with Narichan's launch of a ready-to-drink (RTD) kimchi beverage. This specific product is tailored to address evolving consumer preferences that emphasize health benefits, convenience, and unique experiences. Narichan's foray into the RTD market reflects a broader trend: traditional food brands are increasingly adopting unique product formats to capture attention and enhance international sales. This offers a valuable lesson for exporters on adapting cultural products into modern, convenient forms that can appeal to a global audience.
Narichan, known for traditional kimchi products like fresh, canned, and powdered kimchi, has introduced the “Kimchi Me” drink, a squeezed kimchi juice containing no sugar or gluten, sweetened only with stevia. Beyond just capitalising on the digestion and health benefits of traditional kimchi, this canned beverage offers an easy, accessible format that appeals to both domestic and international audiences, particularly in markets less familiar with kimchi. Heesu Moon, Strategic Purchasing General Manager at Narichan, explained that Kimchi Me’s uniqueness lies in its format, which makes a traditionally strong flavour profile accessible and intriguing for global consumers.
Market Trends
Trend 1: Growing Demand for Convenient Health-Focused RTD ProductsThere is a notable increase in demand for RTD beverages, with consumers prioritising health benefits, convenience, and accessible, nutritious options. Narichan’s RTD kimchi drink capitalises on this trend by delivering traditional benefits—such as aiding digestion and hangover relief—in a portable, canned format. This strategy aligns with the rising interest in functional drinks worldwide, where health-conscious consumers increasingly seek products that offer both convenience and tangible health advantages.
As part of its expansion, Kimchi Me has already entered the U.S. market through H Mart and aims to penetrate Southeast Asian markets like Malaysia and Thailand. This success underscores the importance of product format and convenience as decisive factors for international market entry, particularly in regions where traditional products may require adaptation to local consumer preferences. The trend reflects broader industry shifts towards products that balance heritage and accessibility, helping brands position themselves as culturally relevant yet universally appealing.
Strategic Action
Strategy 1: Innovate with Culturally Adapted, Convenient Product Formats Narichan’s experience with Kimchi Me demonstrates the potential of reimagining traditional products in novel formats. For exporters, an effective strategy would involve identifying culturally significant products and transforming them into convenient formats that cater to global consumer preferences. Implementing this strategy involves the following steps:
Market Research and Cultural Sensitivity Conduct in-depth market research to understand cultural associations and potential health benefits valued by target demographics. For instance, kimchi’s digestive benefits resonate globally, yet require a convenient format for wider adoption outside South Korea.
Product Development and Testing Develop prototypes in varying formats (e.g., canned, bottled) to test consumer acceptance in pilot markets. Narichan’s decision to explore both canned and bottled formats for future versions of Kimchi Me, including carbonated varieties, showcases a flexible approach to product evolution based on feedback.
Distribution and Market Entry Identify and establish partnerships with local distributors and retailers, similar to Narichan’s collaboration with H Mart, to facilitate seamless entry into new markets. This will require understanding distribution dynamics in each region and tailoring packaging sizes and flavours to meet local preferences.
Marketing and Consumer Education Launch targeted marketing campaigns that educate consumers on the product's benefits and cultural significance. Highlight the fusion of tradition and modern convenience, as seen with Narichan’s messaging around health and digestion, to resonate with health-focused audiences.
Through the implementation of these measures, exporters can convert conventional products into ones that have worldwide appeal, meeting the needs of both tradition and contemporary convenience. This approach not only broadens the consumer base but also establishes the brand as a trailblazer in international markets, encouraging greater brand loyalty and growing market presence.
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