{"id":10763,"date":"2020-03-04T16:10:34","date_gmt":"2020-03-04T08:10:34","guid":{"rendered":"https:\/\/www.chfoods.com.tw\/?p=10763"},"modified":"2023-05-31T14:39:38","modified_gmt":"2023-05-31T06:39:38","slug":"nougat-to-costco","status":"publish","type":"post","link":"https:\/\/www.chfoods.com.tw\/en\/blog\/nougat-to-costco\/","title":{"rendered":"Targeting Tourism Opportunities \u2013 Chung Hsiang\u2019s Taiwanese Nougat Sandwich Crackers Sold in Costco in Korea."},"content":{"rendered":"

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source\uff1awealth magazine<\/span><\/p>\n

2017-06-16<\/p>\n

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Targeting Korean Tourists: Chung Hsiang Identifies Opportunities and Enters Carrefour<\/span><\/h2>\n

After spending 47 years honing their craft of savory soda crackers, Chung Hsiang has observed the popularity of Taiwanese nougat sandwich crackers amongst Korean consumers, leading the company to actively invest in R&D. Chung Hsiang Executive Director Li Chuan-Wei explained that in order to access distribution channels, the company\u2019s nougat sandwich crackers must have a shelf life of at least 5 months. Thus, they spent a lot of effort in development to make sure that the nougat sandwich crackers can maintain their crisp cracker and soft delicious nougat as if they just came fresh from the factory. The new nougat sandwich crackers were distributed through wholesale channels in Taiwan which resulted in the sales volume of the Guilin Carrefour in Taipei accounting for nearly one-third of sales of Carrefour across Taiwan. A closer inspection of the store saw that many Korean tourists were buying in bulk. This allowed Chung Hsiang to better understand the popularity of Taiwanese nougat sandwich crackers amongst Koreans and study the possibility of entering the Korean market.<\/p>\n

\"\u55c5\u6e96\u89c0\u5149\u5ba2\u5546\u6a5f
\uff08Taipei\u2019s Carrefour achieves massive success by targeting Korean tourists. Photo: pexels.\uff09<\/span><\/figcaption><\/figure>\n

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From Carrefour to Costco Korea: Taiwanese Crackers Test the Waters in Korea<\/h2>\n

Once Korean distributors got wind, they immediately contacted Chung Hsiang for distribution rights. Chung Hsiang, who had only dedicated their efforts in the Taiwanese market, were initially hesitant towards foreign markets and lacked a substantial marketing budget; however, Korean distributors were extremely confident and recommended Chung Hsiang allow distributors to stock the 12 Costco wholesalers in Korea.<\/p>\n

\"\u55c5\u6e96\u89c0\u5149\u5ba2\u5546\u6a5f
\uff08Entering Korea\u2019s Costco to test the waters. Photo: pexels.\uff09<\/figcaption><\/figure>\n

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From Costco to Supermarkets: Taste Marketing Establishes a Reputation for Asia\u2019s Nougat<\/span><\/h2>\n

Korean distributors believed that the delicious taste of Chung Hsiang\u2019s nougat sandwich crackers meant that \u201ctaste test\u201d marketing at Costco would be a great way to experiment with new products. They believed that if tasted, Chung Hsiang\u2019s nougat sandwich crackers would sell well amongst Korean consumers. However, due to Costco\u2019s membership fee policy that allowed consumers to buy large packs of foreign products at discount prices, Li Chuan-Wei designed a new large 30 pack priced at approximately 9,900 KRW (approx. NT$270)to remain competitive with foreign products; ultimately, entire containers of products sold quickly. After seeing the smashing success of Chung Hsiang\u2019s Asian nougat sandwich crackers at Costco, 7-ELEVEn also contacted Chung Hsiang\u2019s Korean distributor; however, 7-ELEVEn requested that Chung Hsiang design a new smaller packaging. Li Chuan-Wei stated how he observed young women as the most prominent consumers, therefore they designed a special pink packaging with a cute doodle of a dairy cow. The box was labeled with \u201cAsia\u2019s Nougat Sandwich Cracker\u201d to maintain Taiwan creativity; Taiwan\u2019s flag was even posted on the racks of Korea\u2019s 7-ELEVEn stores in order to emphasize the great taste of Taiwan.<\/p>\n

\"\u55c5\u6e96\u89c0\u5149\u5ba2\u5546\u6a5f
\uff08From Costco to convenience marts, the product\u2019s popularity soared due to word of mouth. Photo: pexels.\uff09<\/figcaption><\/figure>\n

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Chung Hsiang\u2019s Asian Nougat Sandwich Cracker Gains Popularity in Korea<\/span><\/h2>\n

An interesting fact is that due to Korea\u2019s cold weather, Korean distributors recommended consumers to heat the crackers up in the oven; however, since 7-ELEVEn only carried microwaves as opposed to ovens, many consumers ended up microwaving the crackers. This resulted in a surge in popularity for the product as the nougat became smoother and featured a better texture. In a few short months, Chung Hsiang\u2019s Asian nougat sandwich crackers sold up to 8 cargo containers in a month. Li Chuan-Wei believes that while Korea has many more import\/export regulations for food products, Taiwan\u2019s insistence on high quality will ultimately lead to success in Korea. Today, Chung Hsiang\u2019s Taiwan plant plans to increase investments into automation equipment in response to increased demand in Korean markets.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n

Chung Hsiang Youtube<\/span><\/h3>\n