Sales Expansion in China

Chinese tourists hold Nongshim ramen products in Chun Dan park, Beijing, China.
Chinese tourists hold Nongshim ramen products in Chun Dan park, Beijing, China.

 

Nongshim’s sales hit a record high in China, the largest ramen market in the world, last year. 

The company announced that Nongshim China, its local subsidiary in China, saw a 28 percent growth in sales last year from the previous year, reaching an all-time high of US$180 million (195.43 billion won). Its figure accounts for 37 percent of the company’s global gross sales of US$490 million (531.99 billion won). 

The Korean ramen market faltered last year, shrinking to the 1 trillion won level after it surpassed 2 trillion won in 2013. However, Nongshim is seeking a breakthrough with exports to overcome a slump in the domestic demand.

In particular, Nongshim’s strategy to focus on the Chinese western market from early last year was effective. Deviating from the east coast metropolitan areas including the existing Beijing and Shanghai markets, the company expanded the supply of its products to western areas such as Chongqing, Xi'an, and Chengdu. 

The online market also played a role in the sales growth. From last year, the company entered the e-commerce business based on Alibaba, the largest e-commerce company in China, and its sales grew 125 percent in the sector after a year of operations. 

This year, Nongshim is planning to strengthen its sales organization in the Southeast China regions with strong growth potential, including Suzhou, Hangzhou, and Nanjing, and expand the sales network to the southwestern regions like Sichuan, Guizhou, and Hunan.

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