BTS Jin Selected as Global Model
English Name Changed to 'OTOKI'
Overseas Sales Remain at 10 Percent
U.S. Production Plant Expected to Be a Turning Point
Ottogi has officially launched its global expansion. The company changed its English name and selected BTS Jin as the global model for its flagship product, Jin Ramen, aiming to catch the late wave of the "K-Ramen craze." There are optimistic prospects that overseas performance will be driven once the new production plant, planned to be established in California, USA, begins operation. However, the industry points out that the licensing process is delayed, and there are considerable concerns about the hit product's lack of competitiveness.
According to the food industry on the 18th, the global campaign video released by Ottogi on the 13th under the concept of "Real Love" has surpassed 900,000 views. The video begins with Jin revealing himself from under an umbrella while walking on a rainy spring day. It was produced like a romance drama showing affection for Jin Ramen with the message "I really miss you." It also includes moments of Jin personally enjoying Jin Ramen. Viewers responded positively, saying things like "I was already a Jin Ramen fan, but now I want to buy more," "The meeting of Goddoki and King Seokjin," and "Because of the model, I only stock up on Jin Ramen."
Sales of packages featuring Jin's portrait are also continuing their initial success. Since this month, Ottogi has been selling Jin's image, as the global model of Jin Ramen, on the spicy and mild flavor containers and cup products. An Ottogi official said, "Many domestic and international fans are posting proof of purchasing Jin Ramen on social media," adding, "Although the exact figures are still being compiled, sales on our own mall have also increased."
Ottogi is expecting the "BTS effect" already proven by Samyang Foods' Buldak Bokkeum Myun. Previously, when BTS member Jimin was seen eating Buldak Bokkeum Myun during an SNS live broadcast, the "Global Buldak Challenge" spread, turning the product into an "export hero." Kim Jung-soo, vice chairman of Samyang Round Square, specifically mentioned Jimin, saying, "We saw a significant advertising effect."
Ottogi plans to accelerate its overseas market expansion starting with global marketing. At the regular shareholders' meeting scheduled for the 26th of this month, a proposal to change the English company name from the existing "OTTOGI" to "OTOKI" will also be submitted. The existing name OTTOGI can be pronounced in various ways, making it difficult to recognize easily, so the company plans to change the name to enhance brand awareness in the global market.
Until now, Ottogi has focused on the domestic market and had almost no overseas market management or export organization. In 2023, the Global Business Division was upgraded to a business headquarters, officially starting overseas business operations, and Kim Kyung-ho, former LG Electronics BS Europe Business Vice President and son-in-law of Chairman Ham Young-jun, was recruited as the first head. Since Ottogi was late in entering overseas markets compared to competitors, it is now speeding up organizational restructuring.
Currently, Ottogi has established subsidiaries in the United States, China, New Zealand, and Vietnam, entering about 70 countries. In contrast, Nongshim has entered over 100 countries, and Samyang Foods about 80 countries.
Nongshim and Samyang Foods have achieved notable results in overseas markets. Since 1994, Nongshim has established Nongshim America and operates local production plants. Locally produced products are quickly supplied to major U.S. B2C channels such as Walmart and Costco, establishing a solid distribution network. Samyang Foods is also targeting the U.S. market leveraging the global brand competitiveness of "Buldak."
However, Ottogi's overseas sales ratio has remained around 10%, with 11.1% in 2021, 11.4% in 2022, 10.7% in 2023, and 10.9% up to the third quarter of last year. Last year, Nongshim and Samyang Foods' overseas sales ratios were about 37% and 76%, respectively. Ramen ranked first among agricultural food exports last year, becoming a key export item, but Ottogi did not benefit from this.
Therefore, many expect that the establishment of Ottogi's production plant in the U.S. will become a new turning point in overseas performance. Ottogi aims to reduce logistics costs incurred during the export process and achieve cost savings by locally sourcing raw materials through the establishment of a local factory in the U.S.
The problem is that since purchasing land in California, USA, in 2022 for the plant establishment, Ottogi has not even broken ground for three years. An Ottogi official said, "The licensing process is complicated, so the progress is unclear, but we hope to start construction within the first half of the year."
Ottogi has set a goal of "1 trillion won in global sales by 2028." Considering that Ottogi's global sales last year were 332.5 billion won, it requires growth of nearly three times within three years. However, to achieve this, a mega-hit product like Samyang Foods' "Buldak Bokkeum Myun" or Nongshim's "Shin Ramyun" is necessary, but there are criticisms that Jin Ramen's competitiveness is still lacking. With BTS Jin leading the way, the overseas recognition of Jin Ramen is gradually increasing, but the brand identity is weak. A food industry insider explained, "Ottogi has mainly generated sales domestically through products like curry, sauces, and seasonings. Overseas, there are strong players like Heinz, the world's number one ketchup brand, so market entry itself is not easy. For ramen, unless focusing on export-only products or targeting flavors that did not exist before, it may be difficult to establish a foothold."
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