Coway made a supply MOU with Zepter, Europe's largest multilevel marketing company (Sep. 29, 2006)



Coway made an MOU with Zepter1, the largest multilevel marketing company in Europe after Amway, for the supply of water filtration systems and air purifiers in Amsterdam, Netherlands on the 30th this month. According to the MOU, Coway will supply Zepter with packages of goods worth about 8 million euros (equivalent to 10 billion Won) at export supply price. Each package consists of five models of water filtration systems, a model of air purifiers and a model of oxygen generators. As the export supply price is an initial order of a marketing concept, actual trading price for additional orders may exceed five to six times the price. Coway dispatched an official to Zepter to explore the possibility for long-term business.

The company plans to make an advance into the European market for water filtration systems that has been fast growing in recent years through a variety of strategies, including development of models tailored to European consumers, reinforced customer support and sales promotion. According to a report of Zenith (2006 Zenith International: a British research and consulting institute on food and beverages), the European market for POU (Point of Use) amounted to about 400 billion Won in 2005, increased by 31.1 percent from the previous year. The report estimated annual growth rate of the market for water filtration system in five years to come at 20%, a total growth of 146% by 2010. According to Inchan Yee, managing director at Overseas Business Division, Coway will eagerly strive to make inroads into the European and American markets for water filtration systems in a bid to occupy the markets ahead of others. He said that the company set the export target by next year at $100 million. The company has currently local subsidiaries in China, Japan, Thailand and Malaysia, and considers establishing a subsidiary in the US and a factory in China this year.



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