“KITA to Target 400 Million Consumers in the Midwest China via Online”
-Signed MOU on online and offline business with Chongqing Liangijiang New Area-
-Practical supports, including product display in bonded exhibition, certification, customs clearance,
for SMEs to make inroads into China–
KITA(Korea International Trade Association) is a public-private organization that has developed tradeKorea.com. As a leader in advancing export strategies, trade systems and procedures, KITA supports SMEs to find new customers and secures a wide range of business connections through tradeKorea.com database. If you want to know more about KITA, please click here.
The Korea International Trade Association (Chairman, Han Duck-soo) signed the Memorandum of Understanding (MOU) on online and offline marketing to support Korean companies’ entry into Chinese domestic market with the Liangjiang New Area at Chongqing Liangijiang New Area Management Center on January 15th. With Ahn Hyun-ho, the full-time vice chairman of KITA, and Tang Lin, the vice chairman of Liangijiang New Area Management Committee, in attendance, the both parties agreed to promote online e-commerce platforms (Kmall24 and Igetmall*), which are run by two countries, conduct offline marketing through bonded exhibition and provide administrative conveniences such as customs clearance, certification, etc.
*Igetmall: International online shopping mall run by Cuntan Free Trade Zone (CFTA) in Liangjiang New Area
Liangjiang New Area is a state-level development zone following Shenzhen, Pudong and Binhai New Areas. The area covers 1,200 square kilometers and is a gateway to a huge consumer market of 400 million people including Chongqing and five neighboring provinces.
This agreement will enable the consumers in Chongqing to purchase Korean products on Kmall24 through Igetmall from February. Moreover, in order to overcome the limit of online marketing, O2O service (Online to Offline)*, which combines offline service by displaying Korean goods at bonded exhibition in Liangjiang New Area and department stores in Chongqing, will be provided. Additionally, KITA will offer administrative services, including certification, quarantine, customs clearance, etc, which were big huddles for Korean small and medium sized companies to make inroads into Chinese markets.
*O2O Service (Online to Offline): It connects online and offline. It includes the consumption pattern that people who took a look at some products at offline stores in person purchase the same products online or via other channels instead of buying them offline. In the case of KITA-Chongqing model, people who experience the goods in bonded exhibition or department stores in Chongqing cna place orders online (Igetmall).
This KITA - Liangjiang New Area MOU is anticipated to be a stepping stone for the two countries’ economic cooperation as well as the activation of e-commerce after the official effectuation of the Korea-China free trade agreement. Furthermore, Korean products are expected to preoccupy the Midwest of China as Korea tied up with Chongqing before the city enters into partnership with other countries such as Canada and Australia which are still under the negotiation.
Ahn Hyun-ho, the vice chairman of KITA stressed “This business agreement will be an opportunity for Korean SMEs to publicize their products to the 400 million consumers in Chinese domestic market including 30 million citizens in Chongqing and neighboring provinces.” He also announced “Connecting online platforms through the networking between organizations of two countries is a new approach for Korean companies to make inroads into Chinese domestic market. After testing the pact in Chongqing, KITA will expand the deal to other cities such as Shanghai and Ningbo that are the selected cities for the Chinese government’s international e-commerce pilot project.”
