Korea Ginseng Corporation (KGC)-owned Jung Kwan Jang (formerly Cheong Kwan Jang) aims to accelerate growth in the region, with a focus on Malaysia, Singapore, and Vietnam.
According to KGC, the firm has been in talks with Malaysia’s Guardian since the first half of this year.
In June, Jung Kwan Jang officially launched its flagship products, namely Korean Red Ginseng Extract Everytime, and health beverages Hong Sam Won (Korean Red Ginseng Drink) and Good Base (Pomegranate), in Guardian and Watsons.
Specifically, the three products are sold in over 100 Guardian stores, and Hong Sam Won in over 150 Watsons stores, including Kuala Lumpur’s Pavilion Shopping Mall.
Said to be the largest health and beauty retailers in the country, Guardian and Watsons operate 600 and 700 stores in Malaysia respectively, with KGC targeting to enter 70 to 80% of these stores eventually.
The firm also plans to introduce Everytime in Watsons by the third quarter of 2024.
“As interest in health has been increasing in various countries around the world, the health supplements market has been steadily growing. We plan to continuously promote Jung Kwan Jang, Korea’s representative health functional food brand, to local consumers through securing various distribution channels, with a focus on Malaysia, a key market in the ASEAN region,” said Lim Han-shin, head of the Eastern Business Division at KGC.
The company’s marketing efforts include strengthening of consumer contact points through events at local landmarks.
As part of the launch, Jung Kwan Jang held a week-long roadshow at Suria KLCC Shopping Centre in June, where there were activities to introduce the brand and products to local consumers, including tasting events.
In addition to Malaysia, KGC is also actively working on expanding its business in Singapore and Vietnam.
“In Singapore, Jung Kwan Jang has successfully established contracts with local shopping malls and department stores to sell our hero products like Hong Sam Won, Everytime, and Good Base (Pomegranate and Aronia) in modern traditional medicine chain stores.”
For instance, its products are available at Wing Joo Loong, as well as e-commerce platforms such as FairPrice Online, Amazon, and Lazada.
“In Vietnam, we have continuously achieved sales growth through differentiated brand communication and localised marketing. Last year, we won the grand prize for Korean Health Food Brand Awards in the country.”
Global market leader
Citing data from global market research firm Euromonitor, KGC said that the size of the health functional food market has grown from KRW1.5tn (USD1.08bn) in 2018 to about KRW2.4tn (USD1.73bn) in 2023.
Furthermore, Jung Kwan Jang has recorded highest sales in the world’s ginseng retail market for a decade straight, attaining a market share of 46% globally last year.
Its flagship product, Korean Red Ginseng Extract Everytime, comprises 30% of the brand’s signature 6-year-old Korean red ginseng extract and 70% purified water.
Consuming one stick of Everytime per day is said to provide the daily recommended dose (3g) of Korean red ginseng.
It is sugar-free, halal-certified, and claims to help boost energy without causing caffeine jitters or sugar crash, which is suited for office workers and fitness enthusiasts.
The product is not only popular in Korea, but also overseas markets including China and the US. Since its launch in 2012, it has accumulated sales of approximately USD950m.
“Everytime has notably been the top-selling single item in duty-free shops at Incheon International Airport, and consistently maintains a top-three overall sales ranking, establishing itself as a must-buy product for travellers to Korea.”
