Developing the Australian mango market in Korea - Presentation from the 10th Australian Mango Conference

1. JINWON TRADING CO., LTD. Mango Conference at DarwinCY2015
Fresh Mango Market
in Korea
Chang Hwa Oh
Cell Phone: 82) 10-2049-8210
e-mail: choh@jinwon.kr
SAF&FC BLDG 6F
#40, BALSAN-RO, GANGSEO-GU, SEOUL, KOREA
TEL: (82-2) 715-0711 FAX: (82-2) 715-0712
www.jinwon.kr

2. CY2015 Mango Conference at DarwinPage 2
1-1. Korean Social Key Word
Most high population density in City Real-estate Value Increased
Lowest Birthrate
in the world
Social
Polarization
Working Mom
Single life
1.98 France
1.94 U.K.
1.94 Sweden
1.15 Korea
23.7% Single Family Rate
- Over 65years old rate among single family
Rate is 49.6%
2 family
member
rate
1 family
member
rate
House Value
Jump more than 3times
Labor Income
Increased less than 2times1. Seoul/Metro 16,700
6. London 5,100
7. Tokyo 4,750
10. Berlin 3,750
12. Paris 3,550
17. Rome 2,950
20. Toronto 2,650
25. Sydney 2,100
27. New York 2,050
30. Luxembourg 1,600

3. CY2015 Mango Conference at DarwinPage
1.76
3.30
2.61
3.05
2.97
2008 2009 2010 2011 2012
Rise Real-loan-interest-rate
(Unit: % per Year)
3
1-2. Current Korean Economy Position
-1.8
0.4
-2.9
0.7
2.9
CY08 CY09 CY10 CY11 CY12
*2012 Jan.‐Jul.
Fall real-estate Value
(Unit: % per Year)
Fall Growth-rate
(Unit:%, Same period comparison)
4.2
3.5 3.6
3.3
2.8
2.4
1stQrt.
CY2011
2nd
3rd
4th
1stQrt.
2012
2nd
* 2012 Jan-Jun.
* Real interest Rate = Nominal Interest Rate
- consumer price index rate

4. CY2015 Mango Conference at DarwinPage 4
1-3. Affects of Korean Social characters to Customer behavior
Lowest Birthrate
in the world
Social
Polarization
Increasing Low-chemical
/Organic market
Working
together
Price
Sensitive
Super-Center
/Shop by car
Fresh cut
Food
Service
Online Market / SSM
Traffic Jam /
Low parcel
post cost
Global depression…..(Lehman brothers, EU…) makes social problems serious.
FTA makes hit items. (Orange, cherry)
Single Family

5. CY2015 Mango Conference at DarwinPage 5
1-4. Produce Market Structure and Shares CY2013

6. CY2015 Mango Conference at DarwinPage 6
1-5. What is the Korean Fresh Fruit Market Trends
1. Value Added Fruit Market: Organic, Low-Chemical, Premium Grade, etc.
2. Strict Quarantine Inspection, Protocol, & MRL.
3. High Tariff vs. FTA
4. Chain-Stores (Few players dominate market) vs. Wholesales Market
5. Promotional Sales vs. Inventory Sales
6. Online Market Growth: TV Home-shopping, Internet Shopping, etc.
7. Fresh-cut Demand & Food Service Market Growth

7. CY2015 Mango Conference at DarwinPage
CY98 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13
Import 142 234 324 332 346 437 454 481 530 549 513 460 598 671 738 675
Domestic 2,782 3,035 3,092 3,128 3,037 2,803 2,944 3,120 2,966 3,120 3,174 3,328 2,886 2,670 2,717 2,711
Dom Ratio 95% 93% 91% 90% 90% 87% 87% 87% 85% 85% 86% 88% 83% 79% 78% 79%
Imp Ratio 5% 7% 9% 10% 10% 13% 13% 13% 15% 15% 14% 12% 17% 21% 22% 21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
1,000
2,000
3,000
4,000
7
2-1. Volume Comparison: Domestic Fruits vs. Import Fruits
Unit: 1,000M/T
(Total domestic produce volume will be 20% Higher than above number.)

8. CY2015 Mango Conference at DarwinPage
Persimmon
Persimmon
Persimmon
Persimmon Persimmon
Persimmon
Plum
Strawberry
Strawberry
Strawberry
Strawberry
Strawberry Strawberry
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
CY98
CY99
CY00
CY01
CY02
CY03
CY04
CY05
CY06
CY07
CY08
CY09
CY10
CY11
CY12
CY13
Apple
Pear
Peach
Grape
Citrus
Water Melon
Yellow Melon
BANANA
ORANGE
PINE
GRAPE
KIWI
G.FRUIT
POME
LEMON
CHERRY
MANGO
8
2-2. Volume Comparison: Domestic Fruits vs. Import Fruits per Items
Unit: 1 M/T

9. CY2015 Mango Conference at DarwinPage
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
MANGO
CHERRY
LEMON
POME
G.FRUIT
KIWI
GRAPE
PINE
ORANGE
BANANA
9
2-3. Imported Fruit’s Volume Trend since 1990
Unit: 1 M/T

10. CY2015 Mango Conference at DarwinPage 10
2-4. Fresh Mango Volume Trend since 2003 by Origins
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Pakistan 24 11 3
Australia 15 47
Vietnam 53
Taiwan 91 42 106 558 457 412 528 493 406 720 906
Thiland 10 26 104 199 280 339 235 464 808 1,30 2,43 4,61
Philippines 858 701 615 863 777 775 255 347 581 1,08 2,94 4,95
0
2,000
4,000
6,000
8,000
10,000
Unit:M/T

11. CY2015 Mango Conference at DarwinPage 11
2-5. From Fresh Mango to Process

12. CY2015 Mango Conference at DarwinPage
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Pakistan 7 4 3
Australia 4 11 14 11 22
Vietnam 6 3 3 8 12 8 13
Taiwan 4 383 330 3 349 554 3
Thailand 132 113 191 502 697 220 238 207 137 170 340 528 910 997 503 38 101 313 303 212 198
Philippines 104 108 136 252 412 241 372 419 333 268 129 168 218 301 674 923 796 418 317 356 374 205 167 206
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
12
2-6. Fresh Mango Volume Trends per Month by Origins
CY2014CY2013
Unit: M/T

13. CY2015 Mango Conference at DarwinPage
-
20,000
40,000
60,000
80,000
100,000
120,000
WK1
WK2
WK3
WK4
WK5
WK6
WK7
WK8
WK9
WK10
WK11
WK12
WK13
WK14
WK15
WK16
WK17
WK18
WK19
WK20
WK21
WK22
WK23
WK24
WK25
WK26
WK27
WK28
WK29
WK30
WK31
WK32
WK33
WK34
WK35
WK36
WK37
WK38
WK39
WK40
WK41
WK42
WK43
WK44
WK45
WK46
WK47
WK48
WK49
WK50
WK51
WK52
2013
2014
2015
13
2-7. Fresh Mango Volume Trend since 2003 by Origins
Unit:
5Kg Box
YEAR YTD Wk21
2013 470,400
2014 1,101,952
2015 1,248,955

14. CY2015 Mango Conference at DarwinPage 14
2-8. Fresh Mango’s Price & Volume Comparison by Origins on CY2004
Taiwan Thailand Philippine Pakista Australia Vietnam
Total volume in Korea 906M/T 4,613M/T 4,955M/T 3M/T 47M/T 53M/T
Jinwon volume 210M/T 929M/T 393M/T 0M/T 47M/T 13M/T
Average price/5kg $31.41 $24.05 $14.65 $10.00 $42.06 $24.15
906M/T
4,613M/T
4,955M/T
3M/T 47M/T 53M/T
210M/T
929M/T
393M/T
0M/T
47M/T
13M/T
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
0M/T
500M/T
1,000M/T
1,500M/T
2,000M/T
2,500M/T
3,000M/T
3,500M/T
4,000M/T
4,500M/T
5,000M/T

15. CY2015 Mango Conference at DarwinPage 15
2-8. Fresh Mango Position by Origin
Origin Taiwan Thailand Philippines Pakistan Vietnam Australia
Tariff
2015
=>2016
30% => 30% 30% => 24% 30% => 24% 30% => 30% 30% => T.B.A. 24% => 21%
2015
Average
Price
$31.41 $24.05 $14.65 $10.00 $24.15 $42.06
2015
Quantity
906M/T 4,613M/T 4,955M/T 3M/T 53M/T 47M/T
Issue
Short Season
Influence by Weather
Strong Retails Demand
Main is WS Market
Peak volume & Supply
Strong Retail Demand
Stable quality & Supply
Less Volume at WS
Retails via Air
Move to Food Service
Under Value Trading
Bad Appearance
Good Taste
No Proper Trading
Short Experience
Appearance Issue
Compete with Thailand
Hi Price, limited Market
Main Market is Retails
Need More Marketing
Improve Package
Introduce Kensington

16. CY2015 Mango Conference at DarwinPage 16
3. What should we do to develop Australian Mango Market in Korea?
1. Find a High-end Market and Consumer.
2. Proper Marketing Strategy.
For example, deliver the Image of Australia.
3. Support Right Partner.
who support Marketing Strategy and Quality through Ripening Process.

17. CY2015 Mango Conference at DarwinPage
Australian Mango
Marketing Activity Plan
(2013 Dec ~ 2014 Jan)
Jinwon Trading Co., Ltd.
David Oh
E-mail : davidoh@jinwon.kr

18. CY2015 Mango Conference at DarwinPage
1 PR Result
Date Media Headline Type
January Issue Retail Magazine Introduce premium Australian mango first Feature
January 1st ~ 15th
(200th edition)
The Buyer Interview with Marie Piccone, Manbulloo
“Enjoy Australian mango in winter season, too”
Interview
January 13 Donga Ilbo Australian mango launching event Straight
January 13 Kukmin Ilbo Jinwon, Australian mango launching event Straight
January 13 Asia Economy Jinwon, Online quiz event for celebrating Australian
mango launching
Straight
January 13 Newsfim Jinwon, Australian mango launching event Straight
January 13 Acrofan Australian mango launching event Straight
Successfully secured 7 media coverage

19. CY2015 Mango Conference at DarwinPage
1 PR Result
Feature article with one of top trade publication,
Retail Magazine on January Issue

20. CY2015 Mango Conference at DarwinPage
1 PR Result
Media Interview with Top trade publication,
The Buyer
The media covered it at the 200th special
edition published on January 1st
It also introduced on the main page of The
Buyer website
Interview

21. CY2015 Mango Conference at DarwinPage
Released on January 13, 2014
5 media covered the news (Donga Ilbo, Kukmin Ilbo, Asia
Economy, Newspim and Acrofan)
Press Release for Online Event
1 PR Result

22. CY2015 Mango Conference at DarwinPage
2 Recipe Development
Hyun-hak Kim
iamfoodstylist food creative group
– A famous Cook and Food stylist, recognized as
Jamie Oliver in Korea
– Leader of iamfoodstylist food creative group
– Professor of collage (major: food styling)
– An author of several cookbooks
– A Power SNS User (Facebook & blog)
– Currently working for TV drama as a food director,
– Working for Radio and major monthly magazines as
food columnist
– One recipe development utilizing Australian mangoes
to showcase

23. CY2015 Mango Conference at DarwinPage
Australian mango salad with grilled chicken
Updated on January 16 at Manna Mall
2 Recipe Development

24. CY2015 Mango Conference at DarwinPage
3 Magazine AD
Message:
“A Present from Australia! Golden Australian Mangoes”
1. Retail Magazine (January 2014: 1 time)
Retail Buyer’s Magazine for new season come
1. Queen (January issue 2014: 1 times)
Ladies Magazine : 30~50 years old

25. CY2015 Mango Conference at DarwinPage
Message:
“A Present from Australia! Golden Australian Mangoes”
1. The Buyer (Dec.2013 ~ Jan.2014: 2 times)
Retail Buyer’s Bi-weekly Magazine
1. ESSEN (January 2014: 1 times)
Food & healthy life Magazine
3 Magazine AD

26. CY2015 Mango Conference at DarwinPage
Private Event 1
Category event entry comment
Private event Power bloger : kim yon hwa 2,766 306
Private event Power bloger : kim se hee 855 207
Public event Manna Mall 1,581 250
TOTLE 5,202 763
Public Event 3Private Event 2
4 Online Event

27. CY2015 Mango Conference at DarwinPage
Private Event 1 Power Bloggers
1. Blog event targeting visitors of their blogs
– From January 6 to 10, during 5 days
– Posts scrap and replying led more exposure
• Salim Hanum Yeoja (Yeon Hwa Kim)
– Housewife, power blogger
– average daily visit about 20,000
– subscriber about 92,956
– Main interest: housewife, daily life
4 Online Event

28. CY2015 Mango Conference at DarwinPage
Private 1
Mango Posting
http://blog.naver.com/dw2434/100202969675
4 Online Event

29. CY2015 Mango Conference at DarwinPage
http://blog.naver.com/dw2434/100202969675Private 1
Mango Posting
4 Online Event

30. CY2015 Mango Conference at DarwinPage
http://blog.naver.com/dw2434/100202969675Private 1
Mango Posting
4 Online Event

31. CY2015 Mango Conference at DarwinPage
http://blog.naver.com/dw2434/100202969675
Private 1
Mango Posting
4 Online Event

32. CY2015 Mango Conference at DarwinPage
http://blog.naver.com/dw2434/100202969675Private 1
Mango Posting
4 Online Event

33. CY2015 Mango Conference at DarwinPage
Replies
Prizewinner list
4 Online Event

34. CY2015 Mango Conference at DarwinPage
Private Event 2 Power Bloggers
1. Blog event targeting visitors of their blogs
– From January 6 to 10, during 5 days
– Posts scrap and replying led more exposure
• Seni_Her household (Se Ihn Kim)
– Housewife, power blogger
– average daily visit: about 10,000
– subscriber about 22,624
– Main interest: cooking, DIY and interior design
4 Online Event

35. CY2015 Mango Conference at DarwinPage
http://blog.naver.com/fograin91/130183671265
Private
Mango Posting
4 Online Event

36. CY2015 Mango Conference at DarwinPage
Replies
Prizewinner list
4 Online Event

37. CY2015 Mango Conference at DarwinPage
Public Event 3 Manna Mall
1. Public online event targeting the public and
existing users
– From January 13 to 17, during 5 days
– Will be announced the winners next week (Jan.
21)
– Average daily visit: about 1,000
– Subscriber about 12,200
– Main interest: import fruits
– Awareness and buzz on Australian mangoes
increased among target audience
– 2 power bloggers announced the public event to
their blog visitors to apply this event once again
to increase the participation
http://www.mannamall.com
4 Online Event

38. CY2015 Mango Conference at DarwinPage
popup Replies Prizewinner list
Public 3
4 Online Event

39. CY2015 Mango Conference at DarwinPage
Audience Overview
4 Online Event

40. CY2015 Mango Conference at DarwinPage
Size
9’s => 5’s
11’s => 6’s
This package was developed for Domestic market
and online sales.
5 Package development
Design

41. CY2015 Mango Conference at DarwinPage 41
Data base
Condition Consumer’s Reaction TASTE PRICE APPEARANCE
3point GOOD GOOD CHEAP CLEAN
2point NORMAL NORMAL NORMAL NORMAL
1point BAD BAD(low suger) TOO EXPENSIVE SCARS
Average Gain Point
1.Consumers Reaction : 3.00 (High initiative actions to know about Australia Mango)
2. Taste Satisfaction : 3.00 (They gave us good feedback)
3. Price Satisfaction : 1.70
( It was somewhat expensive than other domestic fruits)
4. Appearance Satisfaction : 3.00 Point
( good reaction and satisfaction on the size comparing to the other mango kinds)
6 ISP

42. CY2015 Mango Conference at DarwinPage
Homeplus . Yeongtong
2013. DEC. 20~21 / 23~24 (4Day)
6 ISP

43. CY2015 Mango Conference at DarwinPage
Homeplus . Geumcheon
2013. DEC. 20~21 / 23~24 (4Day)
Homeplus . buksuwon
2013. DEC. 20~21 / 23~24 (4Day)
6 ISP

44. CY2015 Mango Conference at DarwinPage
Homeplus . Gangseo
2013. DEC. 20~21 / 23~24 (4Day)
Homeplus . World Cup
2013. DEC. 20~21 / 23~24 (4Day)
6 ISP

45. CY2015 Mango Conference at DarwinPage
Homeplus . Uijeongbu
2013. DEC. 20~21 / 23~24 (4Day)
Homeplus . Dongsuwon
2013. DEC. 20~21 / 23~24 (4Day)
6 ISP

46. CY2015 Mango Conference at DarwinPage
Homeplus . Sangbong
2013. DEC. 20~21 / 23~24 (4Day)
Homeplus . Chilgok
2013. DEC. 20~21 / 23~24 (4Day)
6 ISP

47. CY2015 Mango Conference at DarwinPage
Homeplus . Gimhae
2013. DEC. 20~21 / 23~24 (4Day)
6 ISP

48. CY2015 Mango Conference at DarwinPage 48
3. What should we do to develop Australian Mango Market in Korea?
1. Find a High-end Market and Consumer.
2. Proper Marketing Strategy.
For example, deliver the Image of Australia.
3. Support Right Partner.
who support Marketing Strategy and Quality through Ripening Process.
Will Create the Market Demands Together!!!