Taekwan prospers in China

It has not been easy for Korean food and distribution companies to find success in China due to their Chinese rivals’ fast growth.

However, Taekwan, a Korean food distribution company that entered the Chinese market 20 years ago, is prospering there thanks to its strategy focusing on customers.

The company imports products from Korea’s large food makers such as Nongshim, CJ and Dongsuh, and distributes through Chinese channels. It achieved exports worth 37 billion won ($32 million) last year with the help of its global marketing strategy accumulated over the past 20 years, company officials said.

The company has established regional branches in Shanghai and four other Chinese cities, and is directly operating seven stores.

Behind the company’s success is an understanding of Chinese culture, company officials said.

“As Chinese consumers’ income level rises, the company has focused on making well-customized products and knowing what customers want,” company CEO Ryu Chang-soo said.

“To turn the current crisis into an opportunity for a bright future, Korean companies should seek ways to make the company’s brand value better and higher,” he said.

According to market watchers, Korean companies must come up with a better business plan based on delicate market research, especially in a bid to get the upper hand in the potential FTA with China. They also added that it would be better to form direct distribution channels.

By Choi In-jeong (injeongchoi@heraldcorp.com)