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The Korea International Trade
Association (Chairman, Han Duck-soo) held a seminar titled “The Expansion of
Entry into Retail Markets in Europe” by inviting the representatives of the
Foreign Trade Association (FTA) including Ferry den Hoed, FTA President, at
Trade Tower in Samseong-Dong on December 1.
In the seminar, the FTA gave
presentations on “The Prospect for EU Markets and Consumer Behaviors in 2015”
and “The Outlook for Global Sourcing in EU’s Retail Markets.” During the
presentation of “The Outlook for Global Sourcing in EU’s Retail Markets,” the
speaker elaborated the trend change in sourcing with the increased proportion
of orders in Mainland China and the third countries such as Myanmar. He stated
that 23 percent (as of 2011) of the existing foreign procurement (2011-present)
relied on China’s south coast but it will drop to 19 percent next year.
Moreover, the speaker emphasized the
needs for tariff cuts for transshipped goods as well as Gaeseong Industrial
Complex products along with direct shipping to maximize the effect of Korea-EU
free trade pact. In the seminar, the Institute for International Trade of KITA
also delivered a presentation under the topic of “The Effect of Korea-EU Free
Trade Agreement and Its Impact on the Bilateral Trade.”
Ferry den Hoed, FTA President, said “The
perception of Korean brands in Europe has been Change. Korean brands are no
longer recognized as low-priced goods. Rather, they are perceived as luxury
items that guarantee high quality.” He also argued “If Korea jointly produces
products with EU companies in the third countries, it will greatly improve
European consumers’ awareness of the products which will help them enter into
retail markets in Europe.”
FTA is an interest group which brings
together over 1,300 members, including Carrefour, ALDI and Etam, who operate
the sales network of food, electronics, clothing, sporting goods, etc across
Europe, and mainly works to facilitate the import conditions. In particular,
they have great impact on Business Social Compliance Initiative (BSCI) and
Business Environmental Performance Index (BEPI) which are codes of conduct
forcing European consumers to only purchase products from the companies that
ensure labor conditions and environmental protection.
KITA is building a cooperative
relationship with FTA through signing a memorandum of understanding to actively
seek business matching service between Korean companies and the member
companies of FTA last June.
Kim Jung-soo, director of Emerging
Markets Department of KITA, said “Companies need to meet difficult import
conditions such as quality standards in EU markets but they are promising
markets as there are many consumers with purchasing power.” He added “Since the
price competitiveness of Korean products is improving due to the effect of free
trade agreement, it is required for Korean consumer products companies to pay
attention to the markets.”
