Japanese-Korean confectionery conglomerate Lotte has partnered with DKSH, a market expansion services provider, to aid its expansion efforts in Singapore.
Under the deal, Lotte — a wholly owned subsidiary of Lotte Confectionery Ltd — has entrusted the full suite of marketing and distribution activities for its products in Singapore to DKSH.
Lotte, which produces confectionery products such as its Pepero biscuit sticks, says its key target markets are Singapore, Malaysia, Indonesia, Brunei and the Philippines.
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Lotte managing director, Kim Kyo Hee, said: “Lotte’s philosophy has always been to enrich our customers’ lives by providing them with superior products that they love and tru st in.
“With DKSH, we are confident that we can fulfil this mission, by ensuring that our delicious products are easily accessible to everyone in Singapore.
“We do not just want to sell our products, we also want to establish greater connections with our consumers.”
DKSH said it was selected by Lotte Group because of its pan-Asian experience in the consumer good industry and its unique capillary distribution network.
“In recent years, Asia has become a prime target for market expansion, resulting in the growth in inner-Asian trade. DKSH, with its pan-Asian footprint, is well positioned to help not only Western brands to break into the Asian market, but also local Asian brands looking to expand their Asian footprint” the firm wrote in a press statement.
According to Statistica, the Asia confectionery segment has revenues of USD$80.3bn which is expected to grow annually by 5.7% (CAGR 2018 to 2021.
Meanwhile, Singapore confectionery segment is expected to grow annually by 7.4%.
Bhima Liwlom, Vice President, FMCG, DKSH Singapore added: “It is our privilege to partner with one of South Korea’s most prominent consumer goods companies in South Korea.
“Over the last 150 years, DKSH has conscientiously built up its reputation with a proven track record and success stories in South East Asia.
“We are convinced that we can help Lotte achieve its goal in Singapore.”