KOTRA Supports Domestic Companies' Direct Export Sales During China's 'Guanggunje'

Creating Export Opportunities for Domestic Companies through Direct Shipping Support to Chinese Consumers from Incheon Warehouse

[Asia Economy Reporter Kim Pyeonghwa] The Korea Trade-Investment Promotion Agency (KOTRA) announced that it will sign a business agreement on the 14th with Alibaba Group's overseas direct purchase platform 'Tmall Global' to support small and medium-sized consumer goods companies wishing to export to the Chinese domestic market. Through this, they plan to actively support 'reverse direct purchase' exports.

KOTRA will open a 'Han (韓) Premium Product Exhibition' on Tmall Global. By utilizing Alibaba's warehouse in Incheon, they will support the easy delivery of products from small and medium-sized companies to Chinese consumers. As a preliminary step, KOTRA conducted a joint screening with Tmall Global on the 21st of last month and finally selected 19 small and medium-sized companies interested in entering the Chinese domestic consumer market. These companies plan to register and officially sell their products in early next month to coincide with China's largest shopping season, Guanggunje (11.11).

KOTRA emphasized that the collaboration method with Tmall Global is the first overseas warehouse (TOF) sales model, different from the previous method that only supported participating companies' platform entry. TOF is a new type of entry for overseas brands. Products are sold through online channels, and Alibaba's warehouse in Korea is used to deliver products to consumers.

KOTRA explained that depending on the characteristics of the participating companies' products, Tmall Global's responsible MD arranges contracts with consignment sellers. Consignment sellers, who have local sales expertise and know-how, support the translation of registered products and marketing preparations for participating companies. Tmall Global induces Chinese consumers to purchase products through customized advertising and digital marketing. KOTRA stated that since Tmall Global is a platform dedicated to reverse direct purchase, no separate product certification is required, enabling entry into the Chinese market at the shortest time and lowest cost.

Kim Yuntae, head of KOTRA's Small and Medium Enterprise Division, said, “The reverse direct purchase export support project with Tmall Global will serve as an opportunity to verify the marketability of products on behalf of Chinese domestic agencies and distributors who avoid handling new products due to burdens such as excessive advertising costs.” “It is a good opportunity to create a Korean product boom before Guanggunje,” he added. He continued, “After observing the results of this pilot project, we plan to expand the support target to product fields beyond consumer goods,” and “We hope this will be a new export opportunity for small and medium-sized companies struggling with exports to China due to China's lockdown policies.”

This content was produced with the assistance of AI translation services.