K-Products Focus on Market Expansion with Excellent Technology and Know-How
Employees of Kyowon Theorem's local subsidiary in Vietnam are taking a commemorative photo after securing a direct sales license. Photo by Kyowon Group Ji Gong
[Asia Economy Reporter Kim Heeyoon] Domestic native direct sales companies such as Kyowon Theorem, Atomy, and Jikup are accelerating their global expansion, seeing the growth potential of overseas markets.
According to the industry on the 23rd, Kyowon Theorem and Jikup expanded their overseas business foothold by acquiring local direct sales rights in Vietnam last year.
Jikup was the first domestic direct sales company to acquire direct sales rights in Vietnam at the end of 2019, and from last year, it officially started its Vietnam business by holding its first business briefing sessions in Ho Chi Minh City and Hanoi. Kyowon Theorem also acquired local direct sales rights in Vietnam at the end of last year and is preparing to officially launch its local brand this year, leading with highly favored products such as 'K-Beauty' and 'K-Health.'
Vietnam is a country with very strict laws related to the direct sales industry worldwide. With a population of about 97 million and an annual economic growth rate of over 7%, it is considered one of the most coveted countries for direct sales companies worldwide to enter.
Industry insiders explained that domestic direct sales companies plan to continue promoting the greatness and excellence of K-products through overseas expansion not only in Vietnam but also in countries such as Japan, the United States, and Taiwan.
Domestic Direct Sales Companies Actively Expanding Overseas, Including ‘Kyowon Theorem’ Preparing for Local Brand Launch and ‘Jikup’ with One-Stop Distribution
Kyowon Theorem, which started its domestic business in September 2017, sells about 100 products across four categories: beauty, health, personal, and living care. Kyowon Theorem achieved sales of 46.9 billion KRW last year, more than doubling its sales compared to the previous year.
Kyowon Theorem plans to expand both domestic and overseas markets with a new approach that shares a portion of profits among members not only from domestic sales commissions but also from sales generated overseas.
Atomy, which officially started overseas activities by establishing a corporation in the Indian market in November last year, recruited over 1 million members as Indian corporation members since early last year. India, with a population of about 1.38 billion and an economic growth rate approaching 7%, is a country with promising future prospects. The India Brand Equity Foundation (IBEF), an Indian brand asset foundation, predicts that India’s consumer market will reach about 4 trillion dollars by 2025, raising expectations for market growth.
Atomy, which sells various products including health functional foods and cosmetics, entered four overseas markets last year, including India, China, Colombia, and Hong Kong, pioneering a new market called ‘OnTact Direct Sales.’
Jikup sells various products necessary for daily life, such as beauty, household goods, and health functional foods, not only domestically but also in the global market. By operating a ‘one-stop distribution’ system that handles direct distribution and sales, it continuously maintains sales growth by reducing intermediate costs that would go to third-party distributors.
An industry insider said, “Despite the prolonged COVID-19 pandemic, K-Beauty export volume continues to increase, so domestic direct sales companies are expected to focus on expanding the number of countries for global expansion to meet overseas consumers’ accessibility and needs. It will be a year of active market expansion based on the know-how and excellent product capabilities of domestic direct sales companies.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
