KITA News and Reports
  • Make Inroads into Chinese Convenience Stores with Small-Packaged Hygienic Food
    2018-03-21

    Make Inroads into Chinese Convenience Stores with Small-Packaged Hygienic Food

     

    - KITA researched ‘Trends in Convenient Stores in China’ need to understand consumption patterns of office workers in 20s and 30s -

     

     

    Some point out that in order for Korean food industry to target the expanding convenience store market in China, it is necessary to highlight hygienic food products with small-sized packages.

     

    According to the report titled 'Recent Trends in the Convenience Store Industry in China' issued by the Chengdu Center of the Korea International Trade Association (Chairman, Kim Young-joo) on March 21, the top three convenience stores in China are all local companies and local growth based on each headquarters’ location stands out. Therefore, in order for Korean exporters to enter into Chinese convenience stores, product development and sales strategies aiming at the specific regions are required rather than targeting all regions. 

     

    The report points out "First of all, Korean food companies that are going to enter into the Chinese convenience store market need to select the target areas and thoroughly analyze the lifestyle and consumption patterns of the local consumers." It also emphasizes The hygienic foods such as instant foods, processed foods, and daily foods are promising to target the office workers in 20s to 30s who are the major consumer groups of convenience stores."

     

    In particular, in the case of food, since distribution and storage are directly linked to hygiene issues, supply of original equipment manufacturers (OEMs) through Chinese companies can also be an alternative rather than sticking to direct exports. Considering the fact that direct contact with the Chinese distribution industry is not easy, utilizing the conferences and overseas marketing platforms provided by the Korea International Trade Association and other export-related organizations could be an option.  

     

    Lee Won-seok, a manager at Chengdu Branch of the Korea International Trade Association, said “More than 80 percent of customers visiting convenience stores in China stay at convenience stores within 10 minutes.” He added “Korean exporters must target the customers with locally customized products that can leave a good image within a short period of time.”

     

    · Convenience store customers by age group: No.1: 20s (56.1%),

       No.2:30s (31.6%)

    · Convenience stores customers by class: No.1: office workers (76.7%), No.2: college students (10.4%)

    · Key Types of Purchase Products: ready-to-cook food (12.1%), dairy products (11.3%), beverage (11.0%)

    · Convenience store sales rankingNo. 1:  instant foods (42.9%), No.2: processed foods (31.8%)

     

     

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