Success of Localization
Orion is doing very successful business in China based on thorough localization. These days, its products are highly popular at not only big-box retailers but also neighborhood supermarkets.
Last year, the local subsidiary of Orion supplied its products to approximately 160,000 retailers in China. The number increased by about 55,000 from a year earlier and is expected to break the 230,000 mark this year.
At the same time, Orion’s sales in China exceeded 1 trillion won in (US$961 million) 2013 and are estimated to reach 1.25 trillion won (US$1.20 billion) and 1.8 trillion won (US$1.73 billion) in 2014 and 2015, respectively.
The huge success can be attributed to localization. The company changed the names of its products to Chinese and added new flavors for local consumers. One of the representative examples is the Choco Pie. Its product name in Chinese has the meaning of Good Friend.