Harnessing 118 years of history, CheongKwanJang is aiming to tap into the potential for a supplements category in travel retail with the launch of a targeted product line at TFWA Asia Pacific Exhibition & Conference in May.
There is a leading ginseng brand that has recorded a compound annual growth rate (CAGR) of +20% over the last seven years, and is considered a brand trusted and chosen by Chinese tourists’. That brand is CheongKwanJang.
With 118 years of history to draw on, CheongKwanJang is aiming to set new trends in the travel retail industry. To do so, CheongKwanJang will showcase dedicated new products and unveil its future plans when it makes its debut at the TFWA Asia Pacific Exhibition & Conference in Singapore in May.
CheongKwanJang, which is owned by Korea Ginseng Corp (KGC), is the world’s No.1 ginseng brand (based on “Euromonitor International Limited, Vitamins and Dietary Supplement category; % retail value share, 2007-2016 data. CH2017 edition.”). Its product offering revolves around the Korean ginseng plant, the root of which has been taken as a health food for over 2,000 years around the world. For 118 years KGC has abided by the same principle of using a careful manufacturing process based on the artisan spirit. All CheongKwanJang products are made under strict quality control: from the land management to the production of the end-product, a total of 290 safety tests are conducted, over seven stages.
CheongKwanJang’s core Korean Red Ginseng product draws on this tradition, and CheongKwanJang prides itself on its manufacturing know-how and craftsmanship.
Finest quality: CheongKwanJang’s bestselling ‘Good Grade 10ji (Roots)’ is a Korean Red Ginseng product
CheongKwanJang already has a strong position in the travel retail industry, placing particular focus on the Korean market – whose rapid overall growth and development has intensified competition at every level.
With Korean Red Ginseng though, CheongKwanJang has gained a 2.5% market share in the Korean travel retail industry. Thanks to the influence of the wellbeing trend and the momentum of the global supplement market – which shows a high growth rate of more than +6% annually – CheongKwanJang has recorded strong revenue growth in the Korean travel retail industry, the world’s no. 1 market, for several years.
In 2016 the brand had the second highest revenue at Incheon International Airport duty free shops and in the same year had monthly sales of US$6.42 million. A significant proportion of CheongKwanJang’s customers in the Korean duty free channel are Chinese tourists. There is also a high level of awareness among travellers from Japan, South East Asia and the USA, meaning that there is a great deal of growth potential on a global basis.
And KGC has grand vision in the travel retail industry for its CheongKwanJang brand. There is a huge amount of untapped potential – there is no sustained supplements category in the industry but with the rising popularity of supplements around the world the conditions are now right to create one.
CheongKwanJang’s debut at the 2017 TFWA Asia Pacific Exhibition & Conference will be a launchpad to achieve this aim. The brand will not only strengthen its global business in the Asia Pacific region but will generate interest in new countries in Asia and the Middle East.
The launch of a strategic new product line will help create and broaden interest. CheongKwanJang continually evolves its product offering, and invests some 20% of its operating profits into research & development annually as it develops new products that take into consideration rapidly changing markets and consumer lifestyles.
For example, there has been a noticeable increase in demand for products concerned with enhancing immunity and the health of women in climacterium, and for antioxidants. There is also a need for products that target specific age groups.
The new range of products for the global travel retail industry reflects these trends in the supplements market.
CheongKwanJang Korean Red Ginseng Plus series is based around a ‘family care’ concept, and there will be six products targeting different age groups.
The new series centres on Korean Red Ginseng, and features functional ingredients required by each age group or gender and has been created to boost immunity and promote antioxidation.
The package is light and easy to carry and by applying a colour strategy that is differentiated with other existing products, it reflects the core concept of each product with a colourful sense.
Details of the new products, arranged by age group, can be seen in the box below. CheongKwanJang has already laid down strong roots in travel retail, and with the launch of its ambitious new CheongKwanJang Korean Red Ginseng Plus series, the brand is ready for its next phase of growth.
POWER+ is an invigorating supplement based on Korean Red Ginseng, Maca and Octacosanol.
ENERGY+ has been designed to boost immunity and fight fatigue, and features Korean Red Ginseng, Milk Thistle and Hovenia Dulcis Fruits.
BEAUTY+ is said to “brighten inner beauty” and includes Korean Red Ginseng, Collagen and Hyaluronic Acid.
FOCUS+ provides immunity and “nutrition” for the brain with Korean Red Ginseng, EPA and DHA.
KID+ promotes growth, immunity and healthy intestines and features Korean Red Ginseng, lactobacillus and calcium.
For males and females aged 20+:
GINSENG+ harnesses the power of pure Korean Red Ginseng.