LVIV, UKRAINE — Pet food producer Kormotech announced its expansion into South Korea. According to the company, it is the first Ukrainian pet food manufacturer to export its products to the country.
The South Korean pet food market offers significant opportunities, according to Kormotech.
“The pet food market in South Korea ranks third after China and Japan in East Asia,” said Eduard Babenko, head of the strategic business unit for Ukraine, Moldova and Southeast Asia at Kormotech. “In terms of monetary volume, it is three times larger than in Ukraine. The sales share for specialized dog and cat food is 50% each. However, the uniqueness of the South Korean market lies in the fact that 67% of pet food sales occur through online channels. It is the highest rate in the world, according to Euromonitor reports. Therefore, one of the challenges in cooperating with South Korea is gaining experience in building and developing online sales in the markets.”
Kormotech has partnered with Korean distributor Careside Co. Ltd. to ensure the success of its pet food products in the South Korean market. The company is first focusing on e-commerce platforms and has plans to expand into pet store chains and veterinary clinics.
“Negotiations with the distributor (the Korean company Careside Co. Ltd.) began last year, and we signed a cooperation contract in the fall,” shared Vladyslav Mazurkevych, manager for developing export markets in Asia at Kormotech.
Babenko added, “The distributor Careside Co. Ltd. is remarkably constructive and meticulous. It is easy to work with a well-argued and clear decision-making partner. It allows for building a systematic, understandable, and detailed model of communication and relationships. Compared to other Asian markets, the South Korean partner has a very high standard for building work. Overall, a partner sets points to which one must strive regarding organizing processes, deadlines, etc. And this is motivating.”
At the end of May, the first two containers of dry and wet pet food formulas from Kormotech’s Optimeal and Club 4 Paws brands were unloaded on Careside Co.’s side, according to Kormotech. This represents about 24 tons of pet food products. Beginning June 17, the products became available on 12 South Korean e-commerce platforms, including Naver, Coupang, TM, WM, G-market, Auction, 11th St., Lotte On, Interpark, SSG, CJ on style and GS Shop.
The company hopes to carry on its success from the European market into Asia. According to Kormotech, its pet food brands have witnessed dynamic sales volume growth year-over-year, particularly in Romania with 35% growth, Poland with 11%, and Moldova with 11%, increasing the company’s overall foreign sales to 31%. This growth, as well as the company’s strong position in Ukraine, led it to achieve a turnover of $152 million last year.
Additionally, last year Kormotech made many moves to expand into Malaysia, Finland, Spain and Italy, advancing its presence to include 42 countries throughout the globe.
“Kormotech is successful in the European market and has the experience and resources necessary for global cooperation. Such international success indicates that similar achievements can be expected in the South Korean market,” said You Young Kook, chief executive officer of Careside Co. “Pet food from Kormotech contains high-quality ingredients and undergoes strict quality control. It is a significant advantage, especially for the discerning pet parents of Korean animals.
“It is impressive how the company continuously deepens its expertise in understanding approaches to creating pet diets and their impact on four-pawed friends’ health and quality of life,” Young Kook added. “Most importantly, it tries to develop the pet care and companionship culture, demonstrating our dedication to our mission and the wellbeing of pets.”
According to Kormotech, South Korean consumers are very selective when purchasing products, as these consumers delve into the most minute details, including the products’ composition and the origin of its ingredients. Kormotech’s commitment to quality ingredients and strict standards lends well to meet this consumer trend.
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