Tips for Pakistani Boxing & Martial Arts Supplies Wholesalers Doing Business in South Korea

Tips for Pakistani Boxing & Martial Arts Supplies Wholesalers Doing Business in South Korea

This post is for businesses that produce or sell items such as boxing, kickboxing, jiu-jitsu, and taekwondo in Pakistan.

 

 

Many Pakistani martial arts equipment manufacturers and wholesalers compete with China and want to do business with South Korea.

In the process, many mistakes are made or difficult situations arise due to ignorance of market conditions.

This post is not written from a wholesaler's point of view, but from a real buyer's point of view.

First of all, 4 requirements must be met.

Quality, price, defect inspection and delivery speed are all important.

 

1. Competition between China and Pakistan
Korea has an FTA agreement with China. When trading sporting goods between Korea and China
Tax is close to 0%. There is a very small fee (30$) for issuing an FTA certificate and sending the document by express mail, but There are no taxes.
In addition, because China is close to Korea, shipping costs are low, and delivery is completed within 5 days by ship delivery.
However, shipping costs in Pakistan are higher than those in China, and delivery takes more than 30 days.
If the product has been shipped for 30 days, problems such as staining, contamination, and odor of the product may occur. (The inside of the ship is not clean)


2.Tax Calculation: (Total price of goods + shipping cost)*Tax = Total
:China
The buyer only needs to pay the total amount of the product, shipping cost, and customs clearance agency fee.

 

:Pakistan
The purchase balance must pay a 20% tax on the total amount of the product, shipping cost, and customs clearance agency fee.

Below is a comparison between Pakistan and China.

Example) Pakistan 500 Pakistani boxing gloves $8 = $4,000 Shipping fee = 600$ = 920$ Total = 5520$

Example) China 500 Chinese boxing gloves $8 = $4,000 Ship shipping fee = 450$ Total = 4450$

 

3. Defective products
In China, most of them are produced with machines in factories.
That's why there are almost no defective products. Near 0% defect rate
However, Pakistan has a defect rate of 50% or more.
Various problems such as scratches on leather, bond marks, internal sponge damage, pressure marks, old pu and leather, migration, ink smearing, etc.
Pakistani sellers claim that these are minor and therefore not defective, but to consumers it is already a major flaw.
Pakistani sellers cannot manage this, leaving them behind in competition with China.
The biggest problem is not recognizing these problems as problems.

4. Craftsmanship out of step with the times
Pakistani sellers say it is not made by machine, but because it is made by hand, it is artisanal.
However, it is no higher in quality than machine-made.
Rather low quality.
Because it is made by hand, bond marks and stitch defects and scratches due to mistakes continue to occur.
Also, production is slow.
However, the advantage is that small-scale custom production is possible.
In China, small-scale custom production is either impossible or very expensive.

 

5. Sudden price hikes
This is a common problem for Pakistani sellers.
Sudden price hikes surprise buyers.
Of course, various reasons are suggested, but this is a behavior that is difficult to accept.
In the case of China, when and how much the price will increase in advance.
On the other hand, Pakistan raises prices from time to time.
However, if buyers increase prices because they do not deal with one factory,
Buyers deal with other factories. Since the buyer knows the production price of the product, it is clear that the price increase is simply the seller's greed.
Buyers know.

 

 

5. Lack of understanding of the Korean online shopping mall market
There are two major online shopping platforms in Korea.
(Naver Shopping, Coupang)

First you need to know the characteristics of this shopping mall.
When there are many purchase evaluations and reviews for a specific product, the product gets priority exposure on the platform.

If there are no purchase evaluations and reviews, it is difficult to expect sales performance because it is not exposed on the platform.
If the product is changed, you must give up the rating of the existing product and upload the new product to the shopping mall.

The product has all promotional designs. Designing them takes a lot of money and time.

A lot of money is constantly being invested in the promotional marketing of products on the platform, and they are being promoted constantly.
If the product is changed, the cumulative marketing effect is extinguished.

Therefore, if the material or exterior shape of the product is changed without consultation with the buyer, a big problem arises for the Korean buyer.


For more inquiries, please contact me.

 

https://t.me/mcret