스타트업 커뮤니티 씬디스 (SeenThis.kr)

KOTRA, Expanding Export Channels Across China with Sam's Club Entry Support

  • Written Language: Korean
  • Country: All Countriescountry-flag
  • Economy

Created: 2024-05-07

Created: 2024-05-07 14:19

Holding an ‘Online Consultation Session for New Sam’s Club Store Openings’ until the end of September this year

Interest in health foods and eco-friendly cosmetics is growing… Entering the store opens sales channels across China.

Company A, a small and medium-sized enterprise (SME) that produces ready-to-eat frozen foods, faced difficulties in exporting to China due to low product recognition and strict customs procedures. While seeking effective methods for exporting to China, they encountered a success story of a company that successfully exported to the entire country after entering the Shenzhen Sam’s Club and participated in the ‘Sam’s Club Entrance Consultation Session’. The KOTRA Shenzhen Trade Office supported Company A, from market research on their products to consultation and customs clearance. Company A successfully entered Sam’s Club in the first half of last year, and its exports to China increased by 1800% compared to the same period last year.

Company B, a mid-sized cosmetics manufacturing company, hoped to enter Sam’s Club but had no way to meet the purchasing manager. To resolve this difficulty, Company B visited the KOTRA Shenzhen Trade Office. KOTRA utilized its collaborative network with Sam’s Club to connect Company B with the appropriate purchasing manager for its products. They also prepared materials in Chinese explaining the quality and market potential of Company B’s products to persuade the purchasing manager. Company B is scheduled to enter Sam’s Club after the manufacturing plant inspection. They plan to start exporting cosmetics to China in the second half of the year.

The Ministry of Trade, Industry and Energy (Minister Ahn Duk-geun) and KOTRA (President Yoo Jung-yeol) are partnering with Sam’s Club, a large Chinese warehouse-style supermarket, to host the ‘2024 Sam’s Club New Store Opening Consultation Session’ from the beginning of this year until the end of September. Entering Sam’s Club is considered an effective method for Korean SMEs and mid-sized companies hoping to enter the Chinese market. Entering Sam’s Club enables mass sales across China. Over 100 companies have applied to participate in this consultation session this year, and Sam’s Club purchasing managers are planning to review the products and select some companies for entrance consultations.

Recently, the growth of warehouse-style membership stores has been attracting attention, especially in major Chinese cities. Among them, Sam’s Club, under Walmart, is the leading player. The number of paid members has already exceeded 4 million, and they operate over 40 stores across China. Sam’s Club offers a variety of consumer goods and food products from Korean SMEs and mid-sized companies. KOTRA has been hosting Sam’s Club entrance consultation sessions since 2021, and every year, Korean SMEs have signed significant contracts with Sam’s Club and expanded their exports to China.

Company C, a small and medium-sized enterprise (SME) that produces Korean healthy snacks, had no Chinese export experience but succeeded in entering Sam’s Club last year, instantly expanding its exports to China to approximately $400,000. This company emphasized that the effect of entering the Chinese Sam’s Club is tremendous for Korean SMEs. While the entrance review process, from production to various stages, is very strict, if successful, the perception of the product among Chinese buyers and consumers changes drastically.

Sam’s Club purchasing managers conveyed to KOTRA the product categories they wish to import, aligned with current Chinese consumer trends. First is health foods and beverages. Due to the rising health consciousness among Chinese consumers, demand for low-salt, low-sugar, safe, and high-quality foods is increasing. Notably, the rise of single-person households has also consistently increased the demand for convenient foods such as meal kits and frozen foods.

Second, eco-friendly cosmetics. This is due to the fact that the main consumers in the cosmetics market, the ‘90s generation (Jiulinghou), have started to scrutinize cosmetic ingredients. Third, outdoor products. China is in the initial stages of outdoor market growth, and consumers are seeking unique styles of products. Other mentioned categories include fashion clothing, pet supplies, and household goods.

Purchasing department managers from each category at Sam’s Club will conduct online consultations with Korean SMEs and mid-sized companies one by one.

Hwang Jae-won, head of KOTRA’s China Regional Headquarters, stated that Sam’s Club is not just purchasing well-known Korean products but is actively purchasing high-quality and reasonably priced consumer goods from Korean SMEs and mid-sized companies. He added that entering Sam’s Club leads to mass sales across China, making it a very effective way for Korean SMEs and mid-sized companies to explore the Chinese market.

Website: http://www.kotra.or.kr

Contact
KOTRA
Public Relations Team
Lee Eun-hwa
02-3460-7025

Comments0