Lotte has initiated its China market development strategy with the establishment of an investment company in Shanghai.
Involving a total investment of US$30 million, Lotte's new company, which is called Lotte China Investment Company, will be responsible for Lotte's food and beverage business, management coordination, business operation and research in the Chinese market. Xin Dongbin, deputy director of Lotte, says that the new company will carry out a series of moves in mainland China according to the company's localization policy.
Xin adds that Lotte will set up a research institute in China in the second half of 2007 in order to develop food and drink products that are suitable to the Chinese taste. Xin also discloses Lotte will set up a department store investment company and a chemical and petroleum investment company in China in the future.
In addition, Lotte's department store will land in Beijing next year with its first store opened at the Wangfujing Avenue of downtown Beijing and another one in Shanghai with an unstated schedule.
Lotte is a South Korea-based group that specializes in many different kinds of businesses, but is best known for its department store and chewing gum products.