Mr. Kim Dae Hyun, president of Venta Korea Co. Ltd., has managed the company for 28 years. Venta’s mission is, “We create a healthy and happy lifestyle with the world’s best products for the Korean people.” Prior to directing Venta Korea, Mr. Kim founded Jin-San, the corporation responsible for servicing Whirlpool white goods in Korea. With this experience, in 1994 Venta Korea contracted for the sole partnership with Venta Airwasher in Germany to expand sales and trade. In 1996, Venta Korea began to sell home baking products and was instrumental in developing the baking culture in Korea. In 2000, this led to Venta becoming the exclusive distributor of Wilton Brands in Korea.
Sora Lee studied International commerce and gained experience in the building materials industry, working for an importation company when living in the Philippines, Taiwan and New Zealand.
At Venta Korea, Ms. Lee is responsible the import, management and distribution of Vornado products throughout the online and retail channels in the Korean market.
Background on Venta Korea
Venta Korea is a distributor of home appliances and creative housewares products in the kitchenware and bakeware categories with total sales of US$ 20 million.
Established in 2003, its channels of trade are:
- 30% – Online
- 25% – Independent Specialty
- 15% – Warehouse Clubs
- 15% – Mass Merchants
- 5% – Hardware/Home Center
Current suppliers include:
- Vornado
- Venta
- Wilton
- Star
- Egs
- Perler
Categories represented:
- 70% – Household Electrics
- 25% – Cook and Bakeware
- 2% – Gourmet/Specialty Foods
- 2% – Gifts
- 1% – Kitchen Electrics
Venta Korea is searching for brands in healthy/eco household appliances, small electrics, baby products, stationery, educational products and camping. Pricing strategy aims to compete with Amazon. Venta Korea supports its brands with trade exhibitions, consumer promotion via social media, newspaper and billboard advertising.
Demographics and Economic Conditions in Korea
Korea’s 51 million population is comparable to Pennsylvania. GDP has increased from $12,000 in 2000 to $29,200 in 2017. Seoul, with a population of 23 million, ranks in the top 10 cities for cost of living. Seoul has an outstanding IT infrastructure and a highly-educated talent pool.
Retail Landscape
Ms. Lee outlined the online and offline distribution channels and their characteristics and practices.
Market Share:
- 26% – Complex malls
- 24% – Hypermarkets
- 18% – Department Stores
- 14% – Open Markets
- 8% – Convenience Stores
- 5% – TV Home Shopping
- 5% – Electronics Stores
Sales and Marketing
The sales process includes direct import by large distribution channels, direct import by import companies and transactions through wholesale dealers/vendors. Bulk purchasing details, transaction fees, store leases and margins vary per approach.
Overseas vendors benefit from information provided by two trade associations: Korean International Trade Association (KITA) and the Korea Trade Investment Promotion Agency (KOTRA).
Major trade shows are targeted for the food industry, global coffee business, décor and building products, and baby products. Five primary popular consumer magazines feature coverage of home goods products.
Major Trends
Korea outpaces Norway, Brazil and Great Britain for online shopping. Four consumption keywords for single-person households: Self, Online, Low-Price, One-Stop = SOLO.
Health Care and wellness products are a growing market: functional food, cosmeceutical items, eco-friendly paints and wallpapers, air purifiers, air conditioner, washing machines and anti-allergenic functional clothing.
Koreans are in a hurry, value time efficiency and want quick results. Its consumers are sensitive and discerning and purchasing is influenced by seasonal holidays. Cultural behaviors also drive retail and product trends. Hierarchical relationships based on politeness influence market needs and product acceptance. Hospitality practices, such as filling empty cups and posture, are important for gatherings to eat and drink with friends and business associates.
Successful Marketing
Ms. Lee summarized Venta Korea’s company structure and buyer responsibilities and then described successful marketing campaigns for the Venta Airwasher and Vornado air circulators since 2008.
With Wilton since 2001, Venta Korea introduced the first home-baking import brand and changed home baking with the first cake baking and decorating competition and art collaborations. Venta Korea has supported Star & Egs brands since 1994 and 1995 in the kitchenware and baking categories. The brands Yuck Back and Perler beads offer creative and educational activities for children.
Venta Korea’s corporate social responsibility projects include scholarships, art and cultural support.
Working with Venta Korea
Venta Korea assists global brands with market penetration, wholesaler and retailer relationships and warehousing. It assists manufacturers and OEMs with brand marketing activities, market testing, advertising, seminars and trade fairs, as well as customer service.
Contact:
sourcing@venta.co.kr
Learn More:
www.Ventakorea.co.kr
