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  • Target PB Market, the New Channel to Expand into China
    2019-05-09 hit 304

    Target PB Market, the New Channel to Expand into China


    - Alibaba, JD.COM, etc. strengthens direct cooperation with overseas companies

    new opportunities for Korean companies to make inroads into China -


     


    It has been pointed out that Korean small and medium-sized companies need to pay attention to China's Private Brand (PB) market as a new entry channel.

     


    According to the "Current Status of Chinas Online Distribution Companies in PB market" issued by the Shanghai branch of the Korea International Trade Association (Chairman, Kim Young-joo), large online distribution companies such as Alibaba and JD.COM have introduced private brand products one after another and it is forecast that the volume of PB market in China will reach 3 trillion yuan within 5 years. 

     


    The large online retailers such as Alibaba, JD.COM and NetEase are expanding their power in the PB market through  big data-based demand forecasting and product planning,  expansion of offline stores and diversification of business models and  the strategies to strengthen cooperation with overseas suppliers.

     


    Yanxuan of NetEase is testing a variety of business models by establishing flagship stores on JD.Com and Suning, its competitors, to raise brand awareness and opening a hotel with its own products in cooperation with Atour Hotel. In addition, the company is making efforts to develop its own brand products by working with more than 100 overseas producers. 


    Park Sun-kyung, head of Shanghai Branch of the Korea International Trade Association, said, It is expected that the PB market in China will grow fast as large online distribution companies such as Alibaba are jumping into the market. She suggested, Since Chinese large retailers are strengthening direct cooperation with overseas suppliers, Korean small and medium-sized companies need to actively utilize the PB market in China as a channel for overseas expansion.
     


     


     


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