Gyeonggi Business Center Moscow Contributes to Signing of USD 2 Million Export Contract between Provincial SME and Russian Company
Createdd 2019-09-23 Hit 68
○ GBC Marketing Service supports SMEs in developing overseas sales channels; serves as a vanguard for expanding SME exports
– Dongbang B&H’s signs a USD 2 million export contract with a Russian company; followed by other companies securing large export contracts in Los Angeles and Ho Chi Minh City
– Export contracts totaling KRW 290 billion signed since 2005 with the support of GBCs established in 11 cities in 8 countries
The Gyeonggi Business Centers (GBCs), which have been established and are operated by Gyeonggi Province around the world to facilitate overseas exports by local small and medium-sized enterprises, are working as a vanguard in expanding the province’s support for local exporters.
On September 23, Gyeonggi Province announced that its GBC Marketing Service (GMS) project to support SMEs facing difficulties in developing new overseas sales channels has achieved significant results through the GBCs established around the world, helping SMEs win export contracts in Moscow, Los Angeles, Vietnam, and other regions.
The GMS project provides Gyeonggi SMEs with intensive support from local specialists employed by the GBCs in each country; these specialists facilitate the entire process, from finding buyers to finalizing contracts.
In one case, Dongbang B&H, an eco-friendly detergent manufacturer based in Hwaseong City, signed an export contract in March valued at USD 2 million (KRW 2.4 billion) with a Russian local company through GBC Moscow. This is the largest single export contract realized by the company since its founding in 1986.
Under the contract, Dongbang B&H will exclusively supply Russia with eco-friendly detergents that dissolve well even in cold water and clean fabrics in small amounts.
GBC Moscow played a key role in securing this contract of approximately USD 2 million by linking Dongbang B&H with a leading Russian medical device manufacturer that has annual sales of USD 11.3 million (KRW 130 billion) and was searching for a business partner.
Previously, GBC Moscow provided one-stop support to Dongbang B&H throughout the entire process of finding buyers, promoting products, and reviewing and translating the contract.
In another case, Company J, a facial mask manufacturer based in Seongnam City, recently signed a USD 3 million (KRW 3.6 billion) export contract with a large distribution network in Los Angeles through GBC LA.
Company J faced difficulties entering the US market due to the language barrier and lack of a network. However, with intensive support from GBC LA, the company proceeded with discussions on signing export contracts with a large local distribution network that includes Sephora, Costco, and Entrophologist.
After export consultations and sample tests, the company was awarded a mass purchase contract.
In addition, Company T, a Suwon City-based producer of PVC tiles and plastic flooring, entered the Vietnamese market in March via the realization of an initial contract valued at USD 96,000 (KRW 110 million) through GBC Ho Chi Minh City.
Company T participated in the Gyeonggi Province-Vietnam Trade Promotion Mission organized by GBC Ho Chi Minh City earlier this year and continued to negotiate with local buyers in meetings hosted by GBC. It ultimately succeeded in establishing a bridgehead in the local market.
To support Gyeonggi Province SMEs in their efforts to develop overseas sales channels, the province has so far established and is operating GBCs in eleven cities in eight countries, including China (Shanghai, Shenyang, Guangzhou, Chongqing); India (Mumbai); Russia (Moscow); Malaysia (Kuala Lumpur); US (LA); Vietnam (Ho Chi Minh City); Iran (Tehran); and Kenya (Nairobi).
Since the opening of the first GBC in Mumbai, India, in 2005, a total of 1,600 companies have received support from the GBCs and secured export contracts totaling approximately USD 232.98 million (KRW 290 billion).
Dongbang B&H CEO Lee Sang-eop, whose company successfully won the export contract with support from GBC Moscow, was appreciative, saying: “There are many SMEs that, despite their superior technologies, cannot even dream of exporting due to a lack of human resources and networks. We achieved good results thanks to the ardent and wholehearted support of GBC Moscow.”
“The foreign trade environment has worsened in recent years amidst the US-China trade dispute and Japan’s restrictions on exports to Korea. Gyeonggi Province will fully support local SMEs that lack of information and experience through the know-how and networks of GBCs so that SMEs can expand their export channels,” said Oh Who-seok, Assistant Governor of Economy for Gyeonggi Province.