RSSSalesmen learn cultural nuances of seling in Korea
Y akima Herald-Republic
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Succeeding in business in South Korea often hinges on learning important cultural lessons.
When Peter Verbrugge and Brian Birdsall are working to sell fruit domestically for Sage Fruit Co., they are usually direct and forthright in asking about the status of finances and other business issues.
But when they're in South Korea, they're dealing with "kibun." Loosely translated, it's a person's state of mind, or self-pride.
In everything a Korean does, whether it's making a business decision or considering a marriage, the person's self-pride needs to be taken into account.
It's not unusual for the pair to meet South Korean businessmen over several trips abroad before a business deal is lined up.
During these meetings, the focus is less about closing the deal and more about getting a sense of whether the personalities of the two parties are compatible.
Only when a deal is settled is it then appropriate to bring up more delicate business topics.
"You just have to be aware of the culture as you do business," said Birdsall, export manager for the Yakima company. "In the back of the mind, (you need to) be cautious how you say things as you discuss business."
But for the warehouse-owned fruit marketing firm, learning the country's cultural nuances is well worth the work.
This season, it plans to designate about 40 percent of its exports to South Korea.
"Korea will pay a better price because it wants bigger-sized fruit," Birdsall said.
South Korea is a fruit salesman's dream. Unlike the United States, which is dominated by a few grocery store chains, South Korea offers a variety of retail including discount stores, high-end department stores and typical grocery stores. That doesn't include wholesalers, which supply product to smaller grocery chains.
Stores in the U.S. have a "cookie-cutter approach," said Birdsall, the company's export manager.
"(In Korea,) there are more clusters," said Verbrugge, the company chairman. "They segmented the market. There's less retail consolidation."
And unlike other countries, such as Taiwan, there are fewer cherries that go to street venders and more to retail chains, making it easier to trace quality-control problems.
But none of that would matter if there are no cherries to ship. This year, Sage Fruit's growing partners managed to dodge the cold weather and will be able to provide a sufficient supply for export.
"(The orchards) were just at the right place, at the right time," Birdsall said.
With that potential problem behind them, Sage Fruit is now focused on working with growers to ensure cherries are picked at the right time.
The fruit must be picked, packed and shipped within 36 to 48 hours. One problem could easily break the supply chain. For instance, lack of storage space in a freight or passenger flight will add extra travel time.
And if the cargo doesn't arrive on schedule, cherries may have to sit at the port for several days until a retailer or importer can move the fruit into its supply system.
"It's a very complicated process," Verbrugge said.
