Step-by-step support from onboarding to logistics and marketing

K-beauty, K-food brands expected to gain wider US retail reach

KOTRA's headquarters in Yangjae, Seoul. [KOTRA]
KOTRA's headquarters in Yangjae, Seoul. [KOTRA]

KOTRA has partnered with Walmart, the world's largest retailer, to expand support for South Korean consumer goods companies entering the US market. The initiative aims to help domestic firms in sectors such as K-beauty and K-food establish a foothold in the United States by providing end-to-end assistance — from onboarding onto Walmart's online marketplace to logistics and marketing.

KOTRA announced Monday the launch of the "KOTRA-Walmart Global Online Retail Power Seller Development Program." Selected companies will receive hands-on training for joining the Walmart Marketplace and gaining early traction, along with phased support covering platform operations, logistics and marketing. Funding for marketing costs to boost initial product visibility will also be provided.

The program was designed to address growth in the US e-commerce market and rising local demand for Korean consumer products. According to market research firm Statista Market Insights, the US e-commerce market is estimated at $1.22 trillion this year and is projected to grow at an average annual rate of 5.51 percent through 2030. K-beauty in particular has been rapidly expanding its reach, capturing a 24 percent share of the US cosmetics import market in March.

Walmart operates more than 4,600 brick-and-mortar stores across the United States alongside its online retail network. Products that perform well and earn strong consumer responses on the Walmart Marketplace can also earn placement in physical stores, a prospect that has drawn considerable interest from South Korean companies.

However, setting up accounts, managing logistics and building local marketing capabilities on global retail platforms have long been cited as high barriers to entry for small and midsize enterprises. KOTRA said the program is intended to ease those burdens and help domestic companies establish themselves in the US market.

"Interest in Korean consumer goods — including K-beauty and K-food — has been consistently growing among American consumers," a Walmart Marketplace official said. "We will continue to expand our support programs so that outstanding Korean companies can reach more US consumers through the Walmart platform."

The program follows efforts that began when KOTRA President Kang Gyeong-seong initiated discussions with Walmart at the New York Hallyu Expo last November, and continued with the "Walmart Marketplace and Sourcing Plaza" event in January, when KOTRA invited a Walmart buying delegation to South Korea. KOTRA said it plans to further expand support programs — including advanced advertising and marketing capabilities and live-commerce tie-ins — to help companies generate sustained sales results in the US market.

"The US market is both a key destination for Korean consumer goods exports and a core market that leads global consumption trends," Kang said. "We will spare no effort in supporting promising domestic consumer goods companies so they can enter the US market on solid footing — using large-scale platforms like Walmart — and generate tangible export results."


eyre@heraldcorp.com