FUNCTIONAL foods are a sub-category of foods that have added health benefits.
Not to be confused for superfoods, functional foods undergo processes that enhance their nutritional value and benefits.
Throughout Southeast Asia (SEA), a quickly developing region, functional food is establishing itself as a trend as health consciousness becomes more widespread.
With emphasis on health and convenience being a global phenomenon in a post-pandemic world, functional food companies are in a great position to ride the health wave and gain market share.
However, companies looking to dive into this space will have to navigate obstacles unique to the region if they are to capitalize on the opportunity. One such hurdle is the taste in food that Southeast Asians have grown accustomed to over the years.
With a diverse culinary selection in a relatively small geographical area, Southeast Asians see food and rich flavours as part-and-parcel, and will generally be reluctant to regularly consume food that do not satiate their need for flavour.
The availability and quality of before- and after-sales services also contribute to a brand’s success, and the health and wellness industry is no exception.
As consumers are purchasing a product that they consider to be premium, it is only natural that they expect a higher level of service from these brands or companies, something that is virtually absent in the industry.
A combination of these factors have been a major reason why organic foods have not been able to cultivate a large and loyal customer base as compared to Western countries, where organics are seen as “hip”.
Instead, traditional food is still the staple food in the region.
However, one Malaysian company is shaking up the status quo and blazing a trail for functional food in SEA.
Founded in 2016, Wellous has been making personalised functional food palatable and accessible to Malaysians since its inception.
As the company looked outward from its domestic market of Malaysia, close neighbours Indonesia and Singapore were the obvious landing grounds.
Sticking to their 5 pillars when it comes to consumer experience – packaging, product quality, price, palatable, and product effectiveness – has been a key driver of their quick overseas expansion.
The company has more than a million active customers from the various markets worldwide, and is still growing rapidly, riding on the trend of high public awareness regarding healthy eating, Wellous CEO Racheal Tan told FocusM.
Further explaining, Tan said that the pandemic had great impact on consumer behaviour.
“Before 2019, many of our customers went for our beauty products, especially our iBling series. Once we went into lockdown, there was a big spike in orders from overseas, as well as a clear shift to our functional food series, especially the Tigrox Tiger Milk King,” she noted.
“We focus on both the product and packaging, as we want our consumers to have a complete and superior experience.
“A palatable product is important without compromising its benefits. For that, we use two or more patented or branded ingredients in all our products to ensure that our customers get the best results, while making them tasty for a pleasant experience. Even our packaging is very aesthetically pleasing!”
The company uses a borderless e-commerce model to reach their customers, harnessing the power and reach of social media, while making personalised functional food more accessible to more people.
This has enabled Wellous to expand their overseas presence in a short time. The strategy has certainly paid off, with the company’s overseas sales growing by more than 300% in four years.
Further establishing their overseas strategy, Wellous has set up a local management team in Indonesia, the most populous country in Southeast Asia.
This enables Wellous to understand functional foods from an Indonesian perspective, which would greatly aid in their overseas push.
As more companies follow suit to meet the growing demand for healthier foods, we could start seeing a greater variety of health oriented dietary options, which would be a great win for consumers. – Aug 22, 2022
