Among the many brands of biscuits currently on the market, it seems that nothing beats the popularity of Kong Guan Biscuits with its iconic red tin. During Idul Fitri or Eid celebrations, it seems incomplete if you don’t have a tin of Khong Guan biscuits at home.
Even though the contents are not always biscuits – because they are more often used as a place for crackers or dents, anyone can still recognize it as a Khong Guan biscuit tin. That’s how iconic the brand is in Indonesian society.
Actually, what is the history of Khong Guan so that it is so famous in Indonesia and what is their business strategy? Keep reading this article until the end, okay?
Khong Guan Business History
It is true that this biscuit brand is domestically produced. However, did you know that Khong Guan was originally made in Malaysia, then became famous in Singapore and America?
Khong Guan was created by immigrant brothers from Fujian, China, Chew Choo Keng and Chew Choo Han, when they worked in a biscuit factory in Singapore. When they fled to Perak, Malaysia, due to the Japanese invasion of Singapore in the 1940s, they made and sold biscuits to survive.
After they were finally able to return to Singapore, they continued the biscuit business on a larger scale. Unexpectedly, in that country biscuit sales actually increased until they succeeded in establishing Khong Guan Biscuit (KGB) Factory (Singapore) Limited in 1947.
When the business became more successful, KGB tried its luck in the United States market by establishing Khong Guan Corporation in 1982. With the same business focus, KGC grew large and dominated the biscuit market there.
After that, the KGB expanded its business to a number of countries.
Become the King of Biscuits in Indonesia
The existence of Khong Guan biscuits in Indonesia is not because the KGB opened a business branch here. But because of Ong Kong Ie, Kwee Boen Thwie and Go Swie Kie, owners of a company called NV Giok San Kongsie.
Initially, the company only imported Khong Guan biscuits from Singapore. However, because the business grew, they finally decided to establish PT Khong Guan Biscuit Factory Indonesia Ltd.
It was only in 1971 that the company started producing its own Khong Guan biscuits. This decision was very appropriate because since then, Khong Guan’s business has become increasingly successful and is even said to control 70 percent of the biscuit market share in Indonesia.
What Makes Khong Guan So Iconic
Until now, this biscuit with its iconic tin has succeeded in becoming a symbol of togetherness. People from any generation can recognize Khong Guan cans, just from their shape and color. Even though it contains rengginang or crackers, the name Khong Guan remains firmly in the memory.
Here are three things that make Khong Guan so iconic in Indonesia.
1. Consistent packaging design
Whether round or square, the design of the Khong Guan biscuit tin never changes, namely it is red and has a picture of a mother and her two children eating biscuits at the dining table.
This consistent design is what makes people never forget this brand. Even though the contents are not biscuits, people know that the tin is a Khong Guan biscuit tin.
2. Unique Marketing
Did you know that this company regularly distributes cans to ketoprak, fried rice and porridge sellers? This is what makes Khong Guan tins often found everywhere and makes more and more people familiar with Khong Guan biscuit tins.
So, don’t be surprised if when buying food that uses crackers, the sellers mostly use cans from Khong Guan, which apparently are distributed directly by the company.
Although there may be sellers who use their own used cans, yes.
3. Consistent Taste
From the past until now, the taste of Khong Guan biscuits has never changed. This makes Khong Guan a biscuit that is suitable for nostalgia, especially when gathering with family during Eid.
When I eat Khong Guan biscuits, it feels like I’m back in my childhood when I used to eat these biscuits during Eid at my grandmother’s house. That taste is what everyone is waiting for every time they eat this biscuit at that special moment.
Lessons from Khong Guan Business Strategy
There are several business strategies that can be learned from Khong Guan, namely as follows.
- Consistency in branding, which makes product packaging more easily recognized and iconic.
- Creative Marketing, which makes consumers frequently see the brand on various occasions.
- Associate the product with a special moment, which makes consumers miss you at that moment.
You can use several business strategies from Khong Guan above to apply to the business you are currently running. Don’t be afraid to experiment because business trips cannot be avoided by a process of trial and error.
Then, also make sure you have well-organized business management because behind Khong Guan’s success, they definitely have structured management so that the business can run smoothly.
If you are having difficulty managing your business, try using the Labamu application. With the various advanced features provided, Labamu can help you manage stock, increase sales, and create more organized business financial management.
Immediately download the Labamu application directly on Google Play or the App Store and join more than 84,000 entrepreneurs whose businesses are growing thanks to this application!
