Selling Korean Agriproduct to the well to do in China
Taekwan Co., Ltd is a total agriproducts and food products exporting company located in Incheon. The main market of the company is China, so to lay the groundwork for expanding its market share, the company has been operating five branches and seven direct stores in China.
Ryu Chang-soo, President of the company, explained: “The expanding of Korean agri-and food products to China is surely possible. The company is extending the market focusing on the taste of local customers.”
After the first branch opened in Dalian, the company has opened four more branches so far in Beijing, Qingdao, Shanghai, and Guangzhou. Each branch concentrates on a region of China; for example, the Dalian branch takes the Dongbei area (Liaoning, Jilin, and Heilongjiang) to sell and promote Korean agrifood products.
The company exports over five thousands products from many companies in Korea such as coffee, snacks, bread, drink, noodles, Doenjang (bean paste), Gochujang (red pepper paste), dried laver from the clean sea in Wando, dumplings, salt, soy milk, sauces, red ginseng, citron tea, jujube tea, and corn tea. It also exports kitchen goods and household items. Among the whole products, dried laver from Wando and citron tea are produced by the company and distributed under the brand name ‘TK FOOD.’
The company also manages seven direct stores to approach local customers. Their names are Korea Mart or Koa (Korea+Asia) Mart. There are two direct stores in Dalian, Qingdao, and Harbin each, and there is one more in Beijing. The average width of the stores are about 330.5㎡ and each store sells USD$ 3000~4000 per day.
The company is going to expand distribution networks and strengthening marketing targeted on well off people in China. To that end the company plans to establish multinational chain stores like JUSCO and Carrefour. The strategy of the company is to promote its high-class goods and to open new multinational stores near middles class residences. Two new multinational stores will be opened in Beijing and Shanghai this year.
The company is expecting a greater amount of agriproducts such as apple, pear, citrus, strawberry, grape, paprika, king oyster mushroom and button mushroom to be exported through the opening of multinational stores. They are more expensive but their qualities are much better so people of higher income group will prefer to buy them. Mr. Ryu said: “We will not be a success promoting our goods to lower income groups. It is more efficient to focus on higher income Chinese.”
Through this effort the company reached USD$10m exports in 2006, USD 18m in 2008, and USD$20m last year. These totals contract markedly with the USD$2m when Mr. Ryu started the business. This year the company has set the goal of USD$30m. It should be noted that these amounts are only for the company’s head office. If branch offices are included, the amount would be much bigger.
The exporting markets are expanding to Central Asia (Uzbekistan and Kazakhstan), South-East Asia (Thailand, Vietnam, and Myanmar), and Africa (Zambia), and to some countries of Eastern Europe. To help facilitate these expanding markets, the company is going to participate in the food exhibition ‘FHC China 2010’ in May in Shanghai where it will promote its products in ten booths.
Inquiries Ryu Chang-soo Tel +82-32-766-7919 Fax +82-32-766-7918 E-mail email@example.com
Park Sung Eun firstname.lastname@example.org
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