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KOTRA Opens Export Path to Entire China with Sam's Club Entry Support
- Writing language: Korean
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Summarized by durumis AI
- KOTRA is partnering with Sam's Club, a large-scale warehouse-style supermarket in China, to hold the '2024 Sam's Club New Entry Consultation' until September this year. They have selected products that align with Chinese consumer trends, including health food and eco-friendly cosmetics, as eligible for entry.
- Entering Sam's Club allows for mass sales across China, making it considered an effective method for small and medium-sized enterprises to enter the Chinese market. Companies that entered Sam's Club last year saw a significant increase in Chinese exports.
- KOTRA provides support for market research, consultation, customs clearance, and other aspects for the products of small and medium-sized enterprises through the Sam's Club entry consultation. They also provide opportunities for entry by connecting with Sam's Club buyers.
Sam's Club will hold a new online consultation for entering the market until the end of September this year.
Interest in health food and eco-friendly cosmetics is increasing… Entry opens the door to sales across China.
Company A, a small and medium-sized enterprise producing ready-to-eat frozen food, was struggling with exports to China due to low product recognition in China and complicated customs procedures. While looking for an effective way to export to China, the company heard of a success story of a company that entered the Shenzhen Sam's Club and exported to all of China. It then participated in the "Sam's Club Entry Consultation". The KOTRA Shenzhen Trade Office provided support, including market research on Company A's products, consultation, and customs clearance. Company A successfully entered Sam's Club in the first half of last year, and its exports to China increased 1,800% compared to the same period last year.
Company B, a mid-sized enterprise producing cosmetics, wanted to enter Sam's Club, but could not find a way to meet with a buyer. To overcome this difficulty, Company B visited the KOTRA Shenzhen Trade Office. KOTRA used its cooperative network with Sam's Club to connect Company B with a buyer suitable for its products. KOTRA also prepared Chinese-language materials to persuade the buyer by highlighting the excellence and market potential of Company B's products. Company B is scheduled to enter Sam's Club after the manufacturing plant inspection. It plans to begin exporting cosmetics to China in the second half of this year.
The Ministry of Trade, Industry and Energy (Minister Ahn Duk-geun) and KOTRA (President Yoo Jung-yeol) have been holding the "2024 Sam's Club New Entry Consultation" since the beginning of this year until the end of September, in collaboration with Sam's Club, a large-scale warehouse-type supermarket in China. Entering Sam's Club is considered an effective way for small and medium-sized Korean companies that want to enter the Chinese market. This is because entering Sam's Club allows for large-scale sales across China. Over 100 companies applied to participate in this consultation this year, and Sam's Club buyers will review the products and select some companies for entry consultation.
Recently, the growth of warehouse-type membership marts has been drawing attention, particularly in major Chinese cities. Among them, Sam's Club under Walmart is the strongest. The number of paid members has already exceeded 4 million, and it operates over 40 stores across China. Sam's Club sells a variety of consumer goods and food products from Korean small and medium-sized companies. KOTRA started Sam's Club entry consultations in 2021, and every year Korean small and medium-sized companies have signed significant entry contracts with Sam's Club and expanded their exports to China.
Company C, a small and medium-sized enterprise producing Korean healthy snacks, had no exports to China but successfully entered Sam's Club last year and immediately expanded its exports to China to about USD 400,000. The company stated that the entry effect of Sam's Club in China is enormous for Korean small and medium-sized companies, and while the entry review process is very strict from production to various stages, if successful, the perception of Chinese buyers and consumers changes regarding the product.
Sam's Club buyers have informed KOTRA of the product categories they want to import this year, based on Chinese consumer trends. First, health food and beverages. As Chinese consumers' health awareness increases, they are looking for low-salt, low-sugar, safe, and high-quality food. Especially with the increase in single-person households, the demand for easy-to-prepare food, such as meal kits and frozen food, is steadily increasing.
Second, eco-friendly cosmetics. The younger generation, born in the 1990s, who are the main consumers of cosmetics, are starting to scrutinize the ingredients of cosmetics. Third, outdoor products. China is in the early stages of outdoor market growth, and consumers are looking for products with unique styles. Other items mentioned include fashion apparel, pet supplies, and household items.
Sam's Club's buyers in charge of each category will conduct online consultations with Korean small and medium-sized companies in turn.
Hwang Jae-won, head of KOTRA's China Regional Headquarters, said, "Sam's Club does not only purchase well-known Korean products but also actively purchases excellent consumer goods from our small and medium-sized companies that are of good quality and reasonably priced. Entering Sam's Club allows for large-scale sales across China, making it a very effective way for our small and medium-sized companies to develop new distribution channels in the Chinese market."
Website: http://www.kotra.or.kr
Contact
KOTRA
Public Relations Department
Lee Eun-hwa
02-3460-7025