Joint Promotion with Korea Tourism Organization and Foreign Visitors
Promoting Key Products like Ramen and Convenience Foods
Addressing Weaknesses to Expand Overseas Sales Share
Ottogi, celebrating its 55th anniversary this year, is boosting efforts to promote "K-Food" targeting overseas markets. The company plans to introduce its flagship products such as ramen and home meal replacements (HMR) to foreign tourists visiting South Korea to increase brand awareness.
Convenience food curry is moving along the production line at Ottogi Daepung Factory. [Photo by Ottogi]
According to industry sources on the 16th, Ottogi recently signed a memorandum of understanding (MOU) with the Korea Tourism Organization to jointly promote to inbound foreign tourists. The aim is to discover new consumer demand and encourage repeat visits by linking K-Food with K-Tourism, thereby expanding the attraction of inbound tourists. Specifically, the cooperation will cover ▲ marketing collaboration to attract inbound tourists through linking K-Tourism and K-Food ▲ discovering and promoting tourism content related to K-Food ▲ jointly hosting online and offline events to attract foreign tourists linked to K-Food, among various other areas.
Ottogi plans to introduce its products using pop-up stores and exhibitions frequently visited by inbound tourists. First, until the 31st, a survey on Korean travel will be conducted targeting Japanese tourists visiting the "Ottogi×Object Pop-up Store" set up at Object Seogyo Branch in Mapo-gu, Seoul, to understand travel trends of Generation Z and reflect them in customized business strategies.
Additionally, through domestic and international exhibitions such as the "2024 Korea Beauty Festival" held in Seoul next month and the "2024 Tourism Expo in Tokyo" scheduled for September, Ottogi will introduce its home meal replacements that recreate the flavors of regional representative dishes like Andong Jjimdak and Chuncheon Dakgalbi. The company also plans to develop tourism products (goods) linked to K-Food cooking classes for foreigners operated at Ottogi’s cooking experience space, "O’Kitchen Studio," to attract the interest of foreign tourists.
An Ottogi official stated, "Foreign tourists, including Japanese visitors, often purchase Ottogi products such as ramen and convenience foods during their trips to Korea," adding, "We believe that through collaboration with the Korea Tourism Organization, which aims to discover various items to attract foreign tourists, we can raise awareness of our products and K-Food in overseas markets."
Although Ottogi is a comprehensive food company producing over 3,000 products including curry, ramen, ketchup, mayonnaise, and convenience foods, more than 90% of its sales are concentrated in the domestic market. This is considered a weakness compared to competitors who have sought performance growth by pioneering overseas markets early. As of last year, Ottogi’s sales amounted to 3.4545 trillion KRW, with overseas sales accounting for only about 9.6% at 332.5 billion KRW. In contrast, the overseas sales ratios of Nongshim and Samyang Foods, two other major ramen companies, were 37% and 67.84%, respectively, last year.
In the first quarter earnings consensus (market average forecast) this year, Samyang Foods’ operating profit is expected to increase by 77.41% year-on-year, Nongshim by 4.5%, while Ottogi is projected to rise by only 2.14%.
Considering this situation, Ottogi also plans to focus on expanding its overseas markets. At the regular shareholders’ meeting in March, Ottogi CEO Hwang Seong-man declared, "We will strengthen our global market strategy this year." At the end of last year, the Global Business Division was upgraded to the Global Business Headquarters, and Kim Kyung-ho, former LG Electronics vice president and father-in-law of Ottogi Chairman Ham Young-jun, was recruited as the head of the division to accelerate overseas market expansion. Ramen is already expanding its reach to the U.S. and Southeast Asia.
An Ottogi official said, "We expect this agreement, which promotes the linkage between globally recognized K-Food and inbound tourism, to serve as a catalyst for expanding foreign tourists," adding, "We will continue to strive to enhance the status of K-Food through excellent products and differentiated marketing activities."
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