Success Stories

“Anywhere can be a business meeting spot when it comes to export!” From Incheon Airport lounge to another export deal!

2018-05-15 13:02:21
Kitchen Utensils Family set 2_Bukcal Candle
Hankook Seragh
Kitchen Utensils set_Bukcal Candle_Korea

△ Knife and scissors sets exported to Vietnam

According to Vietnam Expected to Be Second-largest Export Destination for S. Korea in 2020, a report by the Korea International Trade Association (KITA), Vietnam is observing a high economic growth rate of 6 to 7% per annum and will see its population exceed 100 million by 2020.

In March 2017, a buyer who operates a hypermarket in Vietnam sent in an inquiry to TradeKorea for household goods he wished to import in order to supply his mart such as knives, scissors, cleaning tools, and stainless steel kettles. The buyer hoped for a competitive product in terms of origin of production and tariff reduction thanks to the Korea-ASEAN FTA agreement.

During a period of about a month, a representative from the CBT Matching Team at TradeKorea consulted with the buyer and recommended twelve companies related to ceramic and titanium die-cast aluminum kitchen cookware such as frying pans, knives, and scissors.

△ Visiting Hankook Seragh’s booth            △ View of Hankook Seragh’s factory

Not long after, the buyer visited Korea and decided to meet face-to-face with the recommended companies. Because most of the recommended domestic manufacturing companies had no experience in exporting, the TradeKorea CBT Matching Team Manager arranged the schedule between the domestic companies and the buyer himself and even negotiated the meeting place. This is how meetings with a few domestic companies, including Hankook Seragh, were organized in Incheon Airport’s lounge to suit the buyer’s busy schedule.

Buyers first showed pictures of other similar products from other countries that are being sold at USD 2.5 dollar in Vietnam, explaining the price sensitivity of Vietnamese consumers. Hankook Seragh’s representative demonstrated how unique his company’s products were by explaining to the buyer that the products he had presented are also sold in Korea, but are not comfortable to use as the design peels off and the handle is made of plastic.

The buyer decided to take a few products for sample tests directly in Vietnam, including a Block Set consisting of scissors and knives, as well as a set of knives. However, the buyer and Hankook Seragh faced difficulties in negotiating due to differences in terms of initial quantity and supply price during the coordination process.

Fortunately, after a few months of testing, the buyer was pleased with the quality and requested an exclusive contract with Hankook Seragh. After some negotiations, the two companies signed a one-year exclusive export contract and recently completed the first shipment. Both the buyer and seller are looking forward to working together for a long-term partnership based on mutual trust.