KOTRA Holds Consultation Meeting to Support Entry into China's Distribution Network 'Sam's Club'

The Korea Trade-Investment Promotion Agency (KOTRA) will hold the '2023 Sam's Club New Store Entry Online Consultation' with the major Chinese retail network Sam's Club for one month starting from the 18th.

This consultation, now in its third year, was organized to support the export of excellent consumer goods from our small and medium-sized enterprises (SMEs) to China. This year, 120 companies applied to participate in the consultation. Sam's Club purchasing managers will carefully review the products and sequentially select some companies to conduct practical store entry consultations.

Sam's Club, under Walmart, is the largest warehouse membership mart in China. Although Costco has only been in China for four years, Sam's Club has expanded its business for 30 years since entering Shenzhen, China in 1996. As of December last year, it operates 42 stores in 25 cities across China. The number of paid members has exceeded 4 million.

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KOTRA explained that since the Sam's Club purchasing headquarters is located in Shenzhen, China, once our companies enter the stores, they can sell their products throughout China. For domestic SMEs, this means gaining an opportunity to export in large quantities simultaneously with entering the Chinese market.

This year, the product categories of interest that Sam's Club conveyed to KOTRA include Korean frozen and refrigerated foods and beverages, fashion apparel, household daily necessities (idea products), and pet supplies. During this consultation, five related purchasing departments within Sam's Club will sequentially conduct online consultations with our companies. Sam's Club will also hold an online purchasing policy briefing for the selected Korean companies during the consultation, providing guidance on important considerations for entering the Chinese market and payment methods.

Regarding this, a Sam's Club official advised, "Based on many years of purchasing experience, the biggest difficulties for Korean SMEs are Chinese customs clearance and certification," and added, "Korean companies wishing to enter the Chinese market should be aware of and prepare for Chinese testing and certification standards in advance."

Kim Myung-shin, Director of KOTRA Shenzhen Trade Center, said, "The Sam's Club store entry process is strict, but since Chinese consumers trust the quality of products in the stores, it is easier to sell throughout China," and added, "We will continue to work hard to support the entry of excellent products from Korean SMEs by partnering with various large retail networks so that exports of our consumer goods to China can increase."

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