The World's Best Shin Ramyun... Even The New York Times Was Impressed
Chairman Shin Chun-ho's Commitment to Korean Flavor Proved Right
[Asia Economy Reporter Lee Seon-ae] “Don’t just follow what others do; even if it takes time, let’s go our own way. The taste of Korea will become the most global flavor.” Since Shin Chun-ho, Chairman of Nongshim, first exported ramen to the U.S. market in 1971, he has adhered to one principle: preserving the original taste of Nongshim ramen. Chairman Shin’s determination to maintain Korea’s unique flavor, rather than producing products similar to popular Japanese ramen, has now earned a new title: ‘the most delicious ramen in the world.’
◆ ‘Shin Ramyun Black’ named the world’s best ramen by The New York Times = “I couldn’t stop eating these!” According to Nongshim on the 8th, the New York Times, one of the top three daily newspapers in the U.S., selected Nongshim’s ‘Shin Ramyun Black’ as the most delicious ramen in the world. In the article ‘The best instant noodles’ published on the New York Times’ product review site ‘Wirecutter,’ Shin Ramyun Black proudly took first place among the ‘Best 11 Ramen’ worldwide, chosen by journalists and experts. Shin Ramyun Black received high marks for its uniquely rich broth and chewy noodles.
This evaluation was conducted by the New York Times Wirecutter team, who received recommendations for the best ramen from seven food experts including chefs, writers, and critics. They then tasted the final 11 selected ramen products and ranked them based on scores. The Best 11 ramen included four Korean ramen, six Japanese ramen, and one Singaporean ramen.
Following Shin Ramyun Black, Nongshim’s Chapaguri (Chapagetti + Neoguri, 3rd place), Shin Ramyun Dry Noodles (6th place), and Shin Ramyun Bowl (8th place) also made the rankings, drawing attention. Among the 11 products, four from the Nongshim brand were the only Korean products to make the list, upholding the pride of Korean ramen.
A Nongshim official said, “Good evaluations of the Nongshim brand in the fiercely competitive U.S. ramen market directly reflect the status of Korean ramen,” adding, “Based on Nongshim’s overseas business competitiveness boasting superior taste, quality, and production systems, we will continue to increase the popularity of K-food (Korean food wave) in the global market.”
◆ Shin Ramyun spreading Korea’s spicy flavor = Nongshim first exported overseas in 1971. At that time, Nongshim exported its popular domestic beef ramen to the U.S., mainly targeting the Korean-American market. Over about a decade, Nongshim steadily developed the market, and in the 1980s, major brands such as Neoguri, Ansungtangmyun, Chapagetti, and Shin Ramyun successfully established themselves. In 1984, Nongshim opened a sales office in San Francisco, and in 1994, it established its first overseas corporation in the U.S. (LA).
Twenty-four years after establishing a corporation in the U.S. market, Nongshim’s mainstream market sales surpassed those of the Asian market. Last year, the mainstream market share was 62%, overwhelming the Asian market’s 38%. Expanding sales to large local markets such as Walmart was a key factor.
The secret to success in the U.S. market can be summarized in three keywords. First, Nongshim pursues a thorough premium strategy overseas. In the U.S., where income levels are high, Nongshim positioned ramen not as a low-cost food but as a premium product comparable to pasta and spaghetti. Shin Ramyun is currently regarded as a higher-quality product than domestic brands in the U.S., China, and Southeast Asia.
The premium strategy was also effective in establishing a foothold in the U.S. market. While Japanese ramen dominating the market typically sells for about $1 per pack of 3-4 servings, Shin Ramyun and Shin Ramyun Black are priced around $1 to $3 per pack. Japanese brands mainly target low-income consumers and, despite having factories in the U.S., source noodles and soup externally to mix and sell at low prices. Although Shin Ramyun is more expensive, it competes strongly in taste and quality.
Another key to success was bringing Korea’s spicy flavor intact. Since Nongshim had to compete in foreign markets with different tastes, it carefully reviewed the U.S. consumers, market, and food culture, and adhered to the principle of bringing Korea’s authentic taste. Chairman Shin’s insistence on introducing Nongshim’s original flavor without imitating local products played a significant role.
A Nongshim official explained, “The reason Americans like Shin Ramyun is its unique spicy flavor and good quality that cannot be found elsewhere.” According to a consumer survey conducted last year at over 1,300 Walmart stores in the U.S., consumers cited ‘a deep flavor not found in other products’ and ‘quality suitable for a full meal’ as key purchasing factors.
The strategy of selection and concentration, pursuing phased market penetration, was also a driving force. When entering the U.S. market, Nongshim targeted markets with high growth potential through selection and concentration. Instead of entering multiple markets simultaneously, they settled products in one area and then expanded to neighboring regions based on that competitiveness. Nongshim expanded its sales network centered on Los Angeles (LA) to nearby major cities such as San Diego, Las Vegas, and San Francisco.
◆ Shin Ramyun first sought after by the mainstream U.S. market = The turning point for targeting the mainstream market was the deal with Walmart. Shin Ramyun was first sold at Walmart in 2013, starting with test sales in seven stores, marking the beginning of the Walmart partnership.
A Nongshim official said, “Walmart is known for its strict product verification, and if a product fails the test sales, it can never be listed,” adding, “They even check the company’s management status, so only a few products among countless global brands are accepted by Walmart,” describing the situation at the time.
Nongshim deals directly with Walmart. Few companies deliver products directly to Walmart’s 42 distribution centers across the U.S. This requires strong logistics and product competitiveness. Through direct transactions with Walmart, Nongshim was able to strategically target the U.S. market. Analyzing Walmart sales data enabled customized sales activities aligned with market trends, and face-to-face sales with store buyers facilitated effective product listing, display, and promotional events.
Thanks to direct dealings with Walmart, Nongshim became the first in the industry to complete product listings in all Walmart stores across the U.S. in 2017. Starting from over 4,000 large Walmart stores, they also secured product listings in small and medium-sized markets in small towns.
The fact that Shin Ramyun is listed in all Walmart stores indicates that its brand power is recognized on the global stage. In fact, the food products sold nationwide at Walmart include global brands such as Coca-Cola, Nestl?, Pepsi, Kellogg’s, and Heinz. Shin Ramyun stands shoulder to shoulder with these global brands in the U.S., gaining recognition. Being chosen by the world’s top distribution company became Shin Ramyun’s greatest competitive advantage. Subsequently, Shin Ramyun also achieved the milestone of being the first ramen to be listed in major government institution cafeterias such as the U.S. Department of Defense and the Capitol.
A Nongshim official emphasized, “After operating the LA factory since 2005 and expanding the sales network mainly in the western and Korean-American markets for over a decade, we have now established a distribution network across the entire U.S., including major eastern cities, northern Alaska, and Pacific Hawaii,” adding, “Shin Ramyun has now joined the ranks of global products recognized and purchased first by American consumers beyond the Korean community.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
