Korea's exports of consumer goods to China have rebounded, driven by fashion apparel and food. The government plans to continue this upward trend through live commerce, pop-up stores, and the expansion of local distribution networks and logistics hubs.
On August 21, the Ministry of Trade, Industry and Energy held a meeting to review consumer goods exports to China, chaired by Minister Kim Jeong-kwan, with participation from trade officials and representatives from the Korea Trade-Investment Promotion Agency (KOTRA).
The Chinese consumer goods market is estimated to be worth over 1 quadrillion won (50 trillion yuan). However, Korea's consumer goods exports to China peaked at $9.3 billion in 2021 and have been on a decline since then. In response, the government has been promoting local government exchanges, certification and distribution network support, and marketing aimed at inland markets and younger consumers since announcing a comprehensive export expansion plan in February.
As a result, consumer goods exports to China in the first half of this year reached $3.44 billion, an 8.7% increase compared to the same period last year. By category, fashion apparel exports rose by 33.4%, and food exports increased by 17.7%, driving the overall growth in consumer goods exports. Cosmetic exports also turned positive, increasing by 23.8% in June compared to the same month last year.
Regionally, exports to Hubei Province in central China surged by 378%, while exports to Liaoning Province in the northeast rose by 69%, Hainan Province in the south by 62%, and Beijing in the north by 46%. Exports also increased in Shaanxi Province in the west by 33% and Anhui Province in the east by 15%.
The Ministry of Trade plans to fully support specialized regional exports in the second half of the year. This includes expanding live commerce broadcasts using platforms like Douyin and Xiaohongshu, which are popular in China. Additionally, K-consumer goods pop-up stores will be established in major Chinese cities to provide consumers with opportunities to experience products firsthand.
Through the 'One Trade Office, One Distribution Network' initiative, local trade offices will identify local distribution networks, aiming to develop ten new local distribution channels alongside major platforms like JD.com and Alibaba. New 'K-consumer goods logistics desks' will be established in inland areas such as Chengdu and Xi'an to create a logistics support system connecting coastal and inland regions.
Minister Kim Jeong-kwan stated, "The previously sluggish exports of consumer goods to China are showing a meaningful upward trend due to the efforts of both the public and private sectors. We will intensify support for companies in the second half of the year to maintain this momentum for export expansion."
* This article has been translated by AI.
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