Chamber International, export and import support for business



Consumer ProductsOverviewSouth Korea is the third largest retail market in APAC, which will be worth an estimated GBP 364bn by 2018. Most of the country’s population of 50m is concentrated in the Seoul capital region. South Korea also has the seventh largest e-commerce market in the APAC region, worth some GBP 25bn in 2015. Rising disposable income, the entry of international retail chains, liberal retail policies, and a strong e-commerce infrastructure are helping growth of the retail industry in South Korea. South Korea opened its retail market to foreign competition in 1996 and domestic department stores dominated the market until recently. Consumer demands for high quality and world-class designs has led to diversified distribution channels, and department stores, foreign retailers, hypermarkets and supermarkets are now competing with each other for larger market share. Moreover, ‘malling’ has recently gained popularity in South Korea, introducing a culture where consumers enjoy dining, gaming, and watching films at one location. Major British brands such as TESCO have a presence in the country, along with retail and wholesale giants like IKEA and Costco. The country’s e-commerce industry is made up of open market platforms (Gmarket), social commerce platforms (Coupang, Ticket Monster), and online shopping malls (Lotte Mall, SSG). These platforms are exclusively run by domestic firms as Amazon and eBay have largely failed to penetrate Korea’s highly competitive e-commerce market. Impact of the EU-Korea FTAImplemented in July 2011, the EU-Korea FTA will lead to the removal of 97% of all tariffs for UK exporters. The FTA contains provisions on services, public procurement, intellectual property (IP) and sustainable development as well as the liberalization of goods tariffs. The FTA has ushered in enhanced protection for IP rights and improved copyright regulations. Potential Opportunities in KoreaBritish fashion, accessory, confectionary, and beauty product brands are generally considered high-end and enjoy a strong reputation among Korean consumersMajor retailers such as Lotte, Shinsegae, CJ and GS Group are all expanding their organic and green goods selections as eco-friendly brands are attracting more attention from consumersHigh-end brands in the living, sports, leisure, infant and giftware markets are gaining popularity as discretionary consumer spending increases, greater individualism and self-expression and interest in international and luxury brands increase among Case Study: Aquascutum The BriefThis UK-based luxury clothes company appointed BCCK to conduct a partner search of companies in the fashion retail market. The company was interested in identifying a local partner to help it re-enter and penetrate the Korean market successfully given the importance of the market in Asia and globally for its brand. The ApproachBCCK identified more than 40 potential partners and stakeholders in the Korean market and arranged nine meetings with key decision makers. At the end of the project, BCCK provided the company with a comprehensive visit and market report outlining key opportunities, trends in the market, and strategies for partnership discussions. The OutcomeUltimately, the company selected one of the companies the BCCK identified as a partner, and decided to finalise a partnership deal. The BCCK provided advice and guidance to the company throughout the process of finalizing the new business relationship between the two companies. Ultimately, BCCK provided a transparent and economical way for the company to smoothly enter the South Korean market. ................
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