부산의 중국 소비재시장 진출 확대방안 연구 = A Study on Busan Expanding Inroads into China’s Consumption Goods Market

다국어 초록 (Multilingual Abstract)

China’s consumption goods market has been rapidly growing. The annual average growth rate of the consumer goods in China stood at 18% for the last five years, which is projected to continue to increase. This is attributed to the shift of its consumption structure to that of advanced countries type as the personal income has increased in conjunction with China’s high growth of economy. Moreover, as the Korea-China FTA comes into effect, exporting consumption goods to China is expected to gather further momentum.
However, Busan just accounted for 4% of the total exportation of consumption goods to China in 2016, decreasing from 13% in 2013. Compared with Ulsan and Gyeongsangnam-do, Busan had the largest decline in the export to China.
Busan companies have been struggling in China’s consumer goods market, which urges them to strengthen their competitiveness. In this paper, countermeasures for Busan companies to take are suggested through the analysis of the current status of Busan companies’ entry to China’s consumption goods market and of barriers to the exportation. To do this, a survey was conducted targeting all Busan companies that had ever participated in exhibitions in China with their consumption goods. Based on the analysis of China’s statistics, promising cities in China were also proposed for Busan companies to export their consumer goods by item. The respondents said they were having difficulty with customs clearance, licensing, quality certification, intellectual property rights, trademark rights, contracting, and so on during the exportation.
The following countermeasures are needed to resolve the sluggish export of consumer goods to China. First, it is important to develop products specialized in China’s market, improve the cost effectiveness of a product, and help companies enhance their ability to respond to transactions in terms of the improvement of business competitiveness. Next, the Busan Metropolitan Government and related organizations should make efforts to introduce verified buyers, help make inroads into e-commerce in China, subsidize license acquisition, and support the development of a joint brand. Lastly, it is more favorable for newcomers to pioneer new markets rather than to enter markets that have already been saturated and thus fiercely competitive. This is because the larger cities have relatively stricter regulations on imports, particularly foods, and require high distribution costs. Considering all of these, Suzhou, Nanjing, Hangzhou, Wuhan, Changsha, and Dalian are recommended as promising consumption markets.