According to the statistics from Korea Trade-Investment Promotion Agency(KOTRA), in recent years the export of South Korean food to China has been growing steadfastly, accounting for an increasing proportion in the total export of Korean products. The deputy director of marketing development of KOTRA Guangzhou, Kim Woo Jeong said that China remained a large market for South Korean food, and that KOTRA would continue to expand the channels for China-South Korea trade, creating more opportunities for Chinese consumers to know about South Korean food, which was of high quality and sold at fair price.
The booming export of South Korean food to China
KOTRA's statistics show that South Korea's total export volume was USD 526.9 billion in 2015, with food export taking up a proportion of 1.5 percent, amounting to USD 8.03 billion. Due to the global economic recession, last year the export volume of South Korea dropped by 8%, but the decline in food export was not significant. In the three major export markets---US, Japan, and China, South Korea food even maintained a stable growth. Last year alone South Korean food exported to China's mainland valued USD 1.3 billion, and if Hong Kong and Taiwan are taken into account the figure even exceeded USD 2 billion, 5 percent higher than the previous year, marking the best performance of South Korea's main export products.
The most popular and fastest prevailing South Korean food among Chinese consumers are formula milk powder and fresh milk. Through the introduction of cross-border e-commerce, the sales of South Korean milk products go up steadily in China's second and third tier cities. In South Korean, milk producers are all famed large-scale enterprises like Maeil and Namyang which are strict with food safety and quality control. So they earn much trust and confidence from the Chinese consumers who are increasingly concerned with food safety (especially with infant products), resulting in a growing popularity of South Korean milk products in China market. Thanks to South Korea's close geographical tie with China and its convenient customs clearance, South Korean fresh milk with a short shelf life of one or two weeks can be quickly deliverd to China market. On this account, South Korean milk products have advantages over those from other countries, and thus become even more popular in China.
Three advantages of South Korea food in China’s imported food market
According to Kim, Korean food boasts three unique advantages in China:
Special flavor. Compared to other imported food in China, most South Korean food preserves special local flavors, which are widely accepted by Chinese consumers. That's why it always remains competitive in China market. Furthermore, in order to develop its market shares, South Korean food enterprises have been innovating in and improving their products to caterto Chinese consumers' taste.
Fashionable package. The package of South Korean processed food is usually well-designed and trendy. For example, producers print some hot cartoon characters on their product packages, and such intriguing and eye-catching design is vigorously sought after by young consumers.
Fair price. South Korean food involves a wide range of products, from expensive red ginseng juice targeting high-income population, to various snacks suitable for common consumers. Consumers of different levels can find products at desirable prices.
