Korea's E-Commerce Exports to China: Direction for Corporate Strategy and Government Policy
No 64, KDI Focus from Korea Development Institute (KDI)
On the back of the emerging trend in global cross-border e-commerce, Chinese cross-border online shopping has exhibited extraordinary growth. This phenomenon provides Korean manufacturers and e-commerce platforms with invaluable opportunities to expand into a broader market via e-commerce exports. Accordingly, future strategies should focus on attracting new Chinese consumers, building a powerful brand image and improving product quality and post-purchase services, while taking full advantage of the popularity of the Korean Wave. Meanwhile, the government must step up policy efforts such as improving e-commerce export statistics, simplifying logistics and clearance procedures, and building Chinese consumers΄ trust. - This study conducted a survey on Chinese cross border online shoppers' experiences of buying Korean products to draw implications for corporate strategy and policy-making to boost e-commerce exports. - B2C is expected to drive the future growth of China's e-commerce. - Chinese cross-border online shopping has expanded incredibly fast and is projected to record 200-400 trillion won in size by 2018. - Korea Customs Service's clearance records are not suitable to understand the current situation of Korea's e-commerce exports. - China is Korea's largest e-commerce export market and e-commerce exports to China present valuable opportunities for Korean manufacturers to broaden their market. - At present, there are no statistics available on e-commerce exports via Chinese platforms. - A considerable portion of Chinese consumers' online shopping of Korean products seems to be done via Chinese platforms. - Main reasons for Chinese consumers to not buy Korean products online include limited knowledge of Korean brands and the lack of conasumer trust in post-purchase services, product quality and authenticity. - Main reasons for Chinese consumers' online purchases of Korean products include their preference for Korean brands and trust in product quality and authenticity. - The Korean-Wave is found to actually affect Chinese consumers' initial purchase of Korean products online. - Almost 99% of Chinese consumers with online shopping experience of Korean products expressed their intent to repurchase. - The Korean Wave, product quality and price, and information provision are factors affecting Chinese consumers' repurchase intention. - Given the fact that Chinese cross-border online shopping is at the incipient stage and consumers have expressed a strong - intent to repurchase, customer conversion should take precedence. - Statistics on e-commerce exports conducted through Chinese platforms should be provided. - By simplifying logistics and clearance procedures, the Korean government can help domestic manufacturers strengthen their competitiveness with regards to the needs of Chinese consumers. - Policy support is also necessary for the protection of Chinese consumers.
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