JAKARTA. The competition in domestic instant noodles business becomes tougher. Both local and foreign players are involving in the competition for seizing larger shares in domestic instant noodles market.
Recently, Japanese based instant noodles producer PT Nissin Food Indonesia has been massively launching instant noodles products with the flavor of specific Japanese ramen. According to the result of research by Euromonitor, as of 2015 Nissin just secured 1% of total domestic instant noodles market shares, while Indofood has occupied 72% of total market shares.
Nissin boosted its efforts to expand its market shares after Mitsubishi Coorporation bought 34% of PT Nissin Food Indonesia stocks from Nissin Foods Holdings Co Ltd in December 2015. After the acquisition, Nissin has aggressively released its new products. The newest one is ramen UFO noodles with the flavor of Japanese sauce.
Nissin will focus on developing instant noodles with specific flavors of Japanese foods. “In order to face the competition, we are searching for the differentiation points of the products,” said Public Relations of PT Nissin Food Indonesia Sheila Novka.
The strategy is reasonable, on the grounds that the segment of instant noodles with the local tastes have been occupied by Indofood. Indofood itself has developed various instant noodles products, which adapt the the tastes of Archipelago’s foods.
Aside of Nissin, PT Mayora Indah Tbk also targets specific segments to develop its business. Recently, the company just released premium instant noodles under the brand of Bakmi Mewah. The product once attracted consumers’ attention, even though Indofood also produced a product with the similar target of segment.
Marketing Director M1 of PT Mayora Indah Tbk Vienno Monintja said that the initial targets of the premium instant noodles product were the productive and not yet productive generations. “Consumers tend to have a practical meal with the restaurant quality”, Vienno said.
16 billion packs
Chairman of Association of Biscuit, Bread, and Instant Noodles Sribugo Suratmo said that the sales of instant noodles will increase by above 10% by this year. The producers expect to increase the sales of instant noodles from 14 billion packs in 2015 to 16 billion in 2016. “So far we have sold 12 billion packs of instant noodles. We are optimistic to sell 16 billion packs in this year”, said Sribugo.
The instant noodles sales is related to the improvement in public purchasing power, mainly ahead of the end of this year. Andy Ferdinand from Samuel Sekuritas in his research in August 2016 mentioned that PT Indofood CBP Sukses Makmur Tbk has potentials to increase its instant noodles sales by 1%-3% in 2016. “Mainly at the segment of premium instant noodles,” Andy said. (Translator: Muhammad Farid)
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