Listen to this articleKormotech, Ukraine’s most prominent pet food producer, recently announced that it has become the first company from Ukraine to export pet food to South Korea. Kormotech’s super-premium dog and cat food brand Optimeal and premium brand Club 4 Paws are now available on specialized online platforms in South Korea.
“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. “In terms of monetary volume, it is three times larger than Ukraine. The share of sales for special dog and cat food is 50 percent each. However, the uniqueness of the South Korean market lies in fact that 67 percent of pet food sales occur through online channels. This is the highest rate in the world, according to Euromonitor reports. Therefore, one of the challenges in cooperation in South Korea is having experience in developing and developing online sales markets.
“Negotiations with the distributor (the Korean company Careside Co. Ltd.) began last year, and we signed a cooperation contract in the fall,” explained Vladyslav Mazurkevych, manager for developing export markets at Asia at Kormotech. “At the end of May this year, the first two containers of dry and wet pet food Optimeal and Club 4 Paws (about 24 tons of product) were released on the distributor side. So, on June 17, our product on e-commerce platforms in South Korea.”
“Kormotech is successful in the European market and has the experience and resources needed for global cooperation. Such international success indicates that similar successes can be expected in the South Korean market,” said You Young Kook, CEO of Careside co. Ltd. “Pet food from Kormotech contains high-quality ingredients and undergoes strict quality control. This is a significant advantage, especially for discerning Korean pet parents.
It’s amazing how the company continues to deepen its expertise in understanding the techniques of creating pet diets and their impact on the health and quality of life of four-legged friends. Most importantly, it strives to foster a pet care and companionship culture, reflecting our dedication to our mission and the welfare of pets.”
According to Vladyslav Mazurkevych, Kormotech’s super-premium and premium pet food lines are already represented on 12 e-commerce platforms in South Korea: Naver, Coupang, TM, WM, G-market, Auction, 11th St ., Lotte On, Interpark, SSG, CJ in style and GS Shop.
“At the same time, by the end of this year, we want to start cooperating with pet store chains and veterinary clinics so that customers can see the product, check it and feel it,” Vladyslav Mazurkevych explained.
A typical South Korean consumer is very picky when choosing a product. They investigate the smallest details of the product’s composition or the origin of specific ingredients.
Eduard Babenko added that not only South Korean consumers are demanding, but also business representatives.
“Distributor Careside Co. Ltd. is wonderfully constructive and meticulous,” he said. “It is easy to work with a well-argued and clear decision-making partner. This allows the development of a systematic, understandable, and detailed model of communication and relationships. Compared to other Asian markets, the partner in South Korea has a very high standard for building. In general, a partner sets points where one should strive in terms of organizing processes, deadlines, etc. And this is motivating.”
Last year, Kormotech achieved a turnover of $152 million and increased its share of foreign sales to 31 percent. The ratio of Ukrainian foreign sales is 31 percent to 69 percent in tons, respectively.
Kormotech brands showed the most dynamic growth in sales volume compared to last year in the markets of Romania (+35 percent), Poland (+11 percent) and Moldova (+11 percent). Last year, the company signed contracts with partners from Malaysia, started sales in Finland and actively developed in the markets of Spain and Italy — expanding its presence to 42 countries around the world. At the same time, Kormotech maintained its leading position in the Ukrainian market.
