KITA News and Reports
  • Go West, Emerging Consumer Market of the Midwest China
    2017-01-13

                              Go West, Emerging Consumer Market of the Midwest China

    - Need to improve weakness of each product and targeted K-Wave marketing to aim at buyers who have little experience buying Korean products -

     

    Some argue that it is necessary to develop an export strategy aiming at China's mid-west region, the emerging consumer market.

     

    The Institute for International Trade (President, Shin Seung-kwan) of the Korea International Trade Association issued a report titled ‘Go West Strategy.’ The report states that the survey of 700 buyers and consumers in the Midwest of China on the awareness of Korean products shows that people are highly satisfied with the quality of Korean products and the interest and demand on K-Beauty will continue as the respondents selected beauty products such as cosmetics for their future purchase.

     

    Recently, the central and western regions of China are emerging as major consumer markets. The personal income growth of major cities in the Midwest China is overtaking that of the eastern regions and five major cities such as Wuhan and Chengdu are included in the top 20 consumer markets.

     

    The report notes that it is required to develop sales strategies targeting buyers in the Midwest China as only 77 percent of buyers have imported the products from Korea and 67.0 percent of them were satisfied with the experiences while 92.8 percent of consumers in the Midwest region had experience in purchasing Korean products and 88.2 percent were satisfied. The major reason for the buyers not importing Korean products were ‘the difficulties in finding partners’. Therefore, it is suggested to raise awareness of the power of products as well as brands by constantly participating in the same exhibitions and fairs for consumer products as the buyers responded that the major opportunities for them to import Korean products took place at the exhibitions and fairs.

     

    For the consumers, the customized strategies for each product group are needed. While the images of food and beverage and beauty products are required to be upgraded, small domestic appliances, sanitary products and household goods need quality improvement. In addition, it is essential to utilize online channels as 57.8 percent of consumers are purchasing online, and most of the products’ information is acquired via online such as SNS.

     

    On the other hand, the impact of K-Wave on the purchasing decisions of consumers and buyers in the Midwest China is still significant. Particularly, the impact is even larger on the high-income group. Therefore, the report points out that the K-wave marketing aiming at the groups above upper middle class should be continued.

     

    The senior researcher Kim Eun-young at the IIT said It is required to keep a close eye on the government’s development policies for the Midwest China as the region is rising as a consumer market with Chinese government’s regional development plans. She also suggested It is important to differentiate strategies, including the development of different B2C and B2B strategies by selecting key regions based on the awareness of the local consumers and buyers.   

     

     

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