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
According to the "Current Status of China’s 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.”