This success story arises from the combination of the following services: Korea Market Analysis and Research and Finding Business Partners in Korea and Meetings Setup and Negotiation Support in Korea
KOISRA was chosen by a leading Australian-based luxury outdoor heating equipment manufacturer to study and research the Korean outdoor heating industry, aiming to identify importers and distributors for their products in South Korea.
TARGET – IDENTIFYING PROFESSIONAL IMPORTERS
The primary objective was to pinpoint Korean distributors possessing not only expertise in importing heating equipment but also technical capabilities for after-sales service and warranty. Additionally, since the client's target customers were luxury sites such as hotels, restaurants, and other hospitality businesses, prospective importers needed to have prior experience dealing with such clientele.
CHALLENGE – REGULATIONS AND COMPETITIVE LANDSCAPE
The client's products had never entered the Korean market before. South Korea posed market entry barriers, including stringent regulations and a competitive landscape dominated by local manufacturers holding substantial market share. The client's brand was unfamiliar in South Korea, and several active players were already established in the market.
WORK PROCEDURE – MARKET RESEARCH & VISITS, IMPORTER SELECTION
Before identifying potential importers and distributors, a comprehensive market study was conducted to understand trade volume, market size, import regulations, product compliance, and competitor analysis. Following this study, a list of over 200 potential importers, distributors, and end-user customers was compiled and contacted to gauge interest and gather insights regarding their experience with this type of heating equipment. Moreover, an official inquiry was made to regulators to obtain the full requirements for the client's products and factory registration. Armed with comprehensive market data and insights, KOISRA invited the client for a market visit. During this visit, the client interacted with potential importers and distributors and also surveyed relevant sites like hotels, resorts, and restaurants to understand current products used and installation methods.
RESULT – IMPORT AGREEMENT WAS SIGNED
Discussions with various potential Korean importers and distributors, informed by the market study, concluded that the most effective market entry strategy involved partnering with an importer proficient in both technical aspects and import operations. The primary sales avenue for the products would involve collaboration with multiple outdoor equipment distributors. This preliminary market study proved instrumental, offering pivotal information that significantly expedited the identification and selection of suitable partners.
Subsequently, an import agreement was formalized with a chosen party to initiate the import process and ensure product compliance. This appointed importer would directly interface with interested distributors, fostering sales growth while providing technical and after-sales support.
