Korea Ginseng Corp. (KGC) is seeking to tap into the overseas duty-free market.
KGC said on May 13 that it will participate in the 2019 TFWA World Exhibition & Conference to be held in Singapore until May 16.
The TFWA World Exhibition & Conference is the largest duty-free conference in Asia held by the Tax Free World Association that is attended by well-known global brands and duty-free operators.
KGC has been participating in the conference since 2017. It operates a Korean red ginseng zone to promote its CheongKwanJang brand, which is Korea’s leading health food brand.
The CheongKwanJang brand zone is the largest booth among health food brands, and it aims to introduce the excellence and value of Korean red ginseng, which has been used as an herbal remedy for hundreds of years. KGC will display various red ginseng products loved all around the world, along with the CheongKwanJang brand story.
KGC, the number one health food company in Korea, targets the overseas duty-free market for its high growth potential. Over the past two decades, the rapid development of air transportation has led to a dramatic increase in the number of international travelers worldwide, which led to an explosive growth of the global tax-free market.
Sales of domestic duty-free shops topped 18 trillion won (US$17.2 billion) last year, more than four times the 4.5 trillion won recorded in 2010. Recently, domestic distribution companies have made aggressive moves to enter the overseas duty-free market. The prospects for this market are bright because countries around the world have started to increase duty free shops in airports and downtown areas to attract tourists.
On the other hand, most products sold at global duty-free stores are cosmetics, liquors and fashion goods. CheongKwanJang has been leading the efforts to make health foods and functional foods a new high-growth category for duty-free shops.
KGC has opened CheongKwanJang stores in airport and downtown duty-free shops in Japan, Indonesia and Vietnam. It leads the health food category with CheongKwanJang red ginseng products in various duty-free markets, such as Taiwan’s Eva Air duty-free shop and Royal Caribbean Cruise.
A KGC official said, "Most of duty-free customers have high purchasing power, shop for gifts, and are highly interested in new products. Since duty-free shops are the perfect place for non-Koreans to first encounter CheongKwanJang red ginseng products, we will continue to develop overseas duty-free markets.”