The landscape of the K-consumer goods market in China is rapidly transitioning from search-based methods to content-driven live commerce. In light of these developments, companies must adapt their strategies for engaging with this market, as outlined in a recent report from the Korea Trade-Investment Promotion Agency (KOTRA).
On July 20, KOTRA released a report titled ‘Strategies for Expanding K-Consumer Goods Exports through China's Direct Purchase Market,’ which outlines export strategies utilizing content commerce. The report covers significant evolutions in consumer trends in China, platform-specific entry strategies, and how to effectively engage influencers and Key Opinion Consumers (KOCs). Additionally, it serves as a practical guide for companies looking to enter the Chinese market.
According to the report, Chinese consumers are increasingly discovering and purchasing products through short-form videos and live commerce rather than traditional search methods. Consumption goods accounted for 82% of online sales, highlighting that content has become a critical factor in consumer purchasing decisions and sales effectiveness.
KOTRA suggests that leveraging content commerce could be a new approach for entering the Chinese consumer goods market. The report provides a comparative overview of characteristics and tailored entry strategies for major Chinese platforms such as Douyin Global, Tmall Global, JD Global, and Xiaohongshu. It includes various entry types based on company size and product characteristics, along with actionable strategies for content creation and live commerce operations aimed at small and medium-sized enterprises.
Notably, KOTRA's Qingdao Trade Office has been collaborating with Douyin, China's leading content commerce platform, for two years. This partnership has yielded insights into Chinese consumer preferences, item types, step-by-step entry models, and best practices. These resources are made accessible for K-consumer goods companies aiming to penetrate the Chinese market.
For instance, Company A, a manufacturer of whitening functional cosmetics, achieved live commerce sales of 44 million KRW within a week of joining Douyin through KOTRA's support, resulting in recorded exports of approximately 170,000 USD. Additionally, Company B, a cost-effective skincare brand, successfully entered the Chinese market by utilizing the direct purchase route, overcoming previous barriers related to hygiene certification.
These case studies demonstrate the effectiveness of a phased entry approach, which first validates consumer response and product acceptance through content commerce and direct purchase before advancing to local distribution networks. This strategy aims to reduce time and costs while increasing export effectiveness.
Hwang Jae-won, head of KOTRA's China Regional Headquarters, remarked, “The Chinese consumer market is shifting from a search-driven model to one where content attracts consumers.” He emphasized that using direct purchases and content commerce as test marketing tools could enable small and medium-sized enterprises to penetrate the Chinese market more quickly and easily, pledging to provide on-the-ground support to help businesses effectively respond to the evolving online distribution landscape in China.
