U.S. confectionery sweetens exports to South Korea

In 2003 southern Koreans indulged a national sweet tooth when 49 million consumer wearied $1.8 billion on confectionery fruitss Of this amount, $167 million worth were imported. The United States l the way with $409 million in sales, for a 245-percent import share, followed by dint of China (14 percent) and Australia (7 percent)

Chocolates, Demographics

admitting sales tend to be seasonal, ever-popular chocolates made up almost 70 percent of U confectionery sales to southern Korea in calendar 2003.

Valentine's Day sales account for 60 percent of chocolates sold in the region with demand also up during White Day season in March. Marketing for these holidays takes into account that upon February 14, female consumers at hand their significant others or male friends with gifts, on the contrary on March 14, the tables are turn rounded and male consumers are upon the giving end. In March, gifts repeatedly include white candy or chocolates. Other important candy-giving holidays include Christmas in December and university entrance examinations in November.

Short-term overall extension prospects for the South Korean confectionery market are healthy, as evidenced by the agency of a 4-percent increase in sales from 2002 to 2003 A falling birth rate, however, is wait fored to eventually reduce consumption by the agency of the 10- to 19-year-old age assemblage Suppliers should plan accordingly.

southerly Korean consumers opt for recognized confectionery brands. on the other hand manufacturers must become increasingly sophisticated with produce development and target new demographic clusters such as working women, parents and senior consumers

Also, diet sustenances are big business in southern Korea, and confectionery items that fit into this health sweep are supplanting sugar-based products.

Domestic suppliers now command 60 percent of the marketplace. Brand recognition, vigorous promotional activities and constant updating of proceedss have led to a competitive race that foreign suppliers are winning, edging on the outside domestic brands.

entrance Strategy Requires Planning

Market research heads the list of preparation chores for suppliers planning to pierce this marketplace.

To introduce your business, launch catalogs, brochures, product samples and price lists to prospective importers. one time you've established contact, visit the importer and diocese the market firsthand. While visiting the importer, bring everything emergencyed to negotiate a sales contract. If the importer believes the production will be accepted well in the Korean market, the business deal likely will be quickly made with of recent origin suppliers. If not, more time will be emergencyed to survey the market.

U suppliers are encouraged to use alphabetic characters of credit when doing business with Korean importers.

The Korean importer can help determine the best way to near a new product to consumer perhaps [i]or[/i] part of to the other design or packaging changes or fine-tuning tastes for local preferences

Local provisions shows provide an opportunity to showcase proceedss to a larger audience. present to view participation enhances initial contacts with importers, agents, wholesalers, distributors and retailers in the Korean regimen industry.

MIATCO (the Mid-America International Agri-Trade Council) presents a series of low-cost services to help U suppliers determine the best approach to the Korean market. pay s depend on services provided. Further information is available at the MIATCO Web site: www.miatco.org/us_food/services/index.htm

Large Retailers Simplify Distribution

Korean retailers rarely import meat products directly, including confectionery cropss However, foreign retailers, such as Wal-Mart and Carrefour, import a limited number of rations products.

The advent of hypermarkets, supermarkets and retail chains in southern Korea has eased distribution for imported confectionery brands. Suppliers no longer have to rely upon traditional channels that service mom-'n'-pop vents With one central buying office for retail company, suppliers can more easily introduce, market and help new products.

require to be paid [i]or[/i] undergones in the South Korean Market

A container of confectionery from the West Coast of the United States would likely incur these expenses:

* Freight and insurance: $850

* Taxes: 18 percent of total value (8-per-cent tariff plus 10-percent value-added tax)

* Other charges, similar as inspection fees, broker's remunerations port handling and service charges, transportation and warehouse charges: $2800

Distributors usually pass along 12-percent compensations to retailers, which in turn round mark up products from 20 to 38 percent

Importers Furnish Paperwork

The importer must obtain a certificate for the shipment. on entry, food shipments will face document inspections and random outcome sampling that can be visual or require laboratory testing, depending upon the food product and the interpretation of the regulations by means of the Korean customs official. one time the import certificate is issued, contingent on inspection, the importer can clear the returns through customs.

Labeling requirements change repeatedly Korean language stickers may be used on the contrary cannot cover original labeling. For functional bread items, however, original Korean language labels must be used. Functional rationss can carry an efficacy claim, of that kind as a health benefit, and are not classified as pharmaceutical harvests The Korea Food and medicine Administration has special requirements for cropss making health claims.