KOTRA Signs Business Agreement with Major Indian Online Platform and Logistics Companies

[Asia Economy Reporter Suyeon Woo] KOTRA announced on the 30th that it has signed a tripartite memorandum of understanding (MOU) with India's major online platform ShopClues and logistics company MomoE to support Korean consumer goods companies' entry into the Indian online market.

ShopClues is a company acquired by the global shopping platform Qoo10 last November. Qoo10 plans to apply its accumulated logistics know-how to India to create a leading online platform representing all of Asia. ShopClues is known as one of the top three online platforms in India, with 60 million purchasing members, 700,000 registered sellers, and 60,000 daily delivery transactions. MomoE is ShopClues' logistics subsidiary.

Through this MOU, the three organizations will combine their efforts to help promising Korean consumer goods companies enter the Indian market. By pooling their corporate networks and capabilities, they will focus on ▲discovering promising consumer goods companies ▲creating and promoting a Korean Pavilion within ShopClues ▲supporting all export-related matters including logistics. In particular, they will open a Korean Pavilion called 'K-Avenue' on ShopClues, expanding marketing items beyond already recognized beauty products and food to include kitchenware, sports goods, and more.

Kim Moon-young, Head of KOTRA South Asia Regional Headquarters (left in the photo), is taking a commemorative photo with officials from the Indian online platform Shopclus and logistics company Momo after signing a business agreement on the 29th. Photo by KOTRA

Last December, KOTRA opened a Korean Pavilion on Amazon India to support the entry of Korean consumer goods into India. Utilizing the cooperation framework established so far, reverse trade delegations inviting Indian and South Asian distribution vendors to Seoul, Gyeonggi, and Daegu will be held in March and July. In New Delhi, India, the ‘2020 Korea-South Asia Economic Cooperation Expo,’ combining Hallyu and consumer goods, will be held in September.

Kim Moon-young, head of KOTRA's South Asia regional headquarters, said, "This MOU will make it easier for Korean consumer goods to enter the Indian market," adding, "We will strive to establish a support system that Korean companies can use as a one-stop service not only for buyer matching but also for logistics, customs clearance, and certification."

Recently, India has been improving its investment environment centered on Prime Minister Modi's infrastructure expansion and pro-business policies. India's ease of doing business ranking is 63rd in the world, with a mobile phone penetration rate of 86.9 per 100 people, and online payments are spreading based on mobile and internet usage. The Indian retail market is estimated at $1.3 trillion this year, with the online market expected to grow to $103.1 billion.

Global distribution companies are also expanding their entry and investment in the Indian online market. In May 2018, Walmart acquired a 77% stake in India's largest e-commerce platform Flipkart for $16 billion. Recently, Amazon announced a $1 billion investment plan in India over the next five years.

This content was produced with the assistance of AI translation services.