• Title/Summary/Keyword: Chinese rural market

Search Result 31, Processing Time 0.022 seconds

Development of a New Direct Marketing Channel in the Chinese Rural Market: The Case of Hongfu Fertilizer Company

  • Li, Dao-sheng;Hong, Jinhwan
    • Asia Marketing Journal
    • /
    • v.15 no.2
    • /
    • pp.29-47
    • /
    • 2013
  • Distribution channel decisions involve long-term commitments with other firms that are very difficult to change or replace. In particular, marketing channel decisions in emerging markets are much more complicated due to unfamiliar conditions and problems such as lack of market data and distribution systems. Therefore, when a company considers changing or introducing a marketing channel in an area, it is much more difficult to judge its effectiveness in an emerging market than in a developed market. In this study, we investigate the development process of a new direct marketing channel of Hongfu Fertilizer Company (hereafter Hongfu), a medium-sized Chinese fertilizer manufacturer, and propose an approach to test the feasibility of this new marketing channel in the Chinese rural market. We measure the effectiveness of Hongfu's new marketing channel from two perspectives: i) from customers' perspective through direct responses of farmers, which showed that a new channel can increase the convenience and lower the purchasing costs for the farmers, and ii) from the company's perspective, by calculating the incremental profit of the company using the expansion factor (T/Q) method, which suggested that the execution of Hongfu's strategy to expand a new marketing channel will result in an increase in profits. The results of this study contribute to the development of a methodology to test the feasibility of a new direct marketing channel in the emerging markets such as the Chinese rural market. Traditional and indirect distribution channels in emerging markets are generally not very efficient and difficult to change. Especially, in emerging markets, like the Chinese rural market, the methods of testing channel feasibility must be different from that of developed markets. Considering market situations, market experiments can be more effective then systematic market surveys in testing channel feasibility in emerging markets. This study implies that managers must learn to cope with a transition from the traditional marketing channels in emerging markets. With the development in farmers' understanding of marketing concept, the transition from traditional marketing channel is unavoidable for all firms. Farmers in China are generally very conservative, however, their buying behaviors are changing. Therefore, fertilizer companies should try to adjust in accordance with farmers' demand characteristics that the efforts to meet the economic needs of farmers with new marketing channels as well as trust building are critical in the near future.

  • PDF

China's Consumer Market: Growth, Changes, and Korea's Opportunities

  • LEE, JINKOOK
    • KDI Journal of Economic Policy
    • /
    • v.39 no.3
    • /
    • pp.19-41
    • /
    • 2017
  • This paper examines the aspects of changes in China's consumer market since the mid-1980s. By comparing urban and rural residents' expenditures, I find that the rural consumer market has exhibited extraordinary growth. Over the past decade, the consumption growth rate and average propensity to consume by rural residents have surpassed those of their urban counterparts, with the former's consumption patterns becoming increasingly similar to the latter's. Such a phenomenon prevails in rural areas which neighbor second-and third-tier cities where urbanization is progressing rapidly. These findings imply that Korean companies need to diversify their export goods in line with China's expanding rural markets while further differentiating their product composition to satisfy the heterogeneous demands in urban areas. With regard to the government, efforts must be made to strengthen the export cooperative system so that it targets not only urban but also rural markets in China.

Impact of Pursuing Goals on Customer Channel Preference: Mediating Effects of Product Utility and Process Utility

  • Li, Dao-sheng;Lee, Hyunjoung;Hong, Jinhwan
    • Asia Marketing Journal
    • /
    • v.16 no.2
    • /
    • pp.15-38
    • /
    • 2014
  • This paper explores the influence of pursuing goals on customer channel preference in Chinese rural market. With the rapid change in distribution channels and increase in multi-channels, it is necessary to understand the preference for channel choice as well as product choice. This study empirically validated the conceptual framework of the relationship between the pursuing goals and customer channel choice proposed by Balasubramanian, Raghunathan, and Mahajan (2005). Based on the survey data of 232 fertilizer customers in Chinese rural market, this study explores how economic, social, and psychological pursuing goals can impact customer channel preference by mediating variables of product utility and process utility. The results indicate that pursuing goals positively related with product utility and process utility, and product / process utility can mediate the relationship between pursuing goals and customer channel preference positively. Consequently, we can conclude that customers' economic-social-psychological pursuing goals can directly influence customer channel preference via their purchase process utility and product utility. This result also implies that product utility is effective on process utility during consumer's buying decision making, and process utility and product utility are not mutually independent. Therefore, purchase process utility is a "latent driving force" on customer's channel choice decision.

  • PDF

An Analysis of Determinants for Korean Spray Rose Purchase in China (중국 지역에서의 한국산 스프레이 장미 구입 결정요인 분석)

  • Kim, Kyung-Phil;Choi, Jong Woo;Kim, Sang-Hyo;Han, Jung-Hoon;Lim, Seung-Ju
    • Journal of Korean Society of Rural Planning
    • /
    • v.23 no.3
    • /
    • pp.53-60
    • /
    • 2017
  • In order to export Korean spray roses to the China, it is needed to analyse chinese preferences, rose attributes, and purchase intentions. The purpose of this study is to present the implications on the production and distribution of roses for export by analyzing the quality preference attributes and purchase intention of Korean rose for Chinese flower experts. A survey on the preference and purchase intention of Korean flower roses by Chinese flower experts was conducted through face - to - face interviews with flower show participants in China. Approximately 100 Chinese flower experts who participated in the Flower Show in 2016 received the questionnaire, and 86 survey results could be used for analysis. Survey data were analyzed using ordered probit and bivariate probit models. As a result of an analysis, it was found that Chinese flower experts were more likely to buy Korean roses than Chinese roses even if they consider flower color, leaf shape and size and color diversity. The probability of purchasing more than twice the price was higher than that of the color diversity considering the flower shape, leaf shape and size, but the bivariate order probit model was larger than that of flowers, leaves and size, and the order of probability size was changed. In order to increase the export of Korean spray roses to the Chinese market, We need to increase Chinese experts' preferences and satisfaction. For this purpose, it is very important to develop export varieties of roses with large flower buds and shape / coloring, and to apply the useful post-harvest technology that can extend freshness and distribution period of export roses.

A Study on the Quality of Farmers and Characters of Rural Human Resources in China (중국의 농민 소질과 농촌인력자원의 특성에 관한 연구)

  • Bae, Sung-Eui
    • Journal of Agricultural Extension & Community Development
    • /
    • v.16 no.2
    • /
    • pp.285-304
    • /
    • 2009
  • The objectives of this study were finding out some methods about development of oversea agriculture in Korea. It is a tough task that faces us now. China is a big agricultural country, most agricultural investment country and the nearest located in Korea. So this study researches on the quality of farmers and characters of rural human resources in China. In China, agriculture industry is the basic industry among national economy developments. The majority of populations in China are living in rural region. Agriculture, villages and farmers are main issues in China. From this point, An analysis of Chinese farmers' characters and qualities; general conditions of farmers' knowledge of science and technology, their education level, quality of minds and sprit, and rural public health service situation in China. The result of this study is following; First, Chinese farmers' factors that low education level, big cultural differences between cities and country sides affect the development of China's agriculture as obstruction factors. Second, Practice conditions of farmers' science knowledge and technology are low level, output of higher rural human resources, low quality of minds and sprit and problems of agricultural extension service. It is negative influenced of agriculture and farmers economic development in China. Third, unsociable culture of the peasantry influences Chinese farming in the negative ways. Also, conventional notions of family are getting weaker, it makes connection of the kinship weaken. But, Chinese think that this kind of kinship is the most important thing in their life. Fourth, in the case of situations that the farmer's sanitation and health, low level of the medical service is getting worse than before relatively. And there are a lot of discordances between a planned childbirth policy and personal recognitions. Also, lacking of nourishment makes labor productivity falling tendencies. The medical industry falls short of the standard as compared to the number of farming people. Fifth, in the peasantry's consciousness of the legal system, this causes difficulties to farmers in the market. Shortage of the legal knowledge exerts a bad influence upon rural economy.

  • PDF

Development of a Web-based Integrated System for Flow of Agricultural Products (Web 기반의 농산물 유통분석 통합 시스템 개발)

  • Suh, Kyo;Lee, Jeong-Jae;Kim, Tae-Gon
    • Journal of Korean Society of Rural Planning
    • /
    • v.11 no.2 s.27
    • /
    • pp.1-8
    • /
    • 2005
  • This study is to develop a web-based integrated system for flow of agricultural products based on recent researches with engineering approach. The system stands on the basis of web for accessibility and usability. Three parts of the system consist of analysis of regional shipping characteristics using tank model, estimation of pallet load efficiency with Monte Carlo Simulation, a long term prediction of market price with reliability analysis. Besides a decision support module for selecting optimal shipping market is added through synthesizing techniques and spatial analysis using GIS and applied to Chinese cabbage of Pyeongchang in 2004.

An Analysis of Chinese Consumers' Preference on Rose (중국 소비자의 장미 선호속성 분석)

  • Kim, Kyung-Phil;Lim, Seung-Ju;Han, Jung-Hoon;Choi, Jong-Woo;Kim, Sang-Hyo
    • Journal of Distribution Science
    • /
    • v.14 no.8
    • /
    • pp.139-151
    • /
    • 2016
  • Purpose - In Chinese rose market, Korea competes against Latin American and African countries, but is not so competitive in terms of price and quality, implying the importance of using appropriate marketing strategies. This study aims to examine Chinese rose consumers' recognition and attributes of preference for roses produced in Korea, in order to use the result as baseline data for Korean rose exporters to China and provide implications that help establish a variety of marketing strategies targeting each region, income and age group. Research Design, Data and Methodology - 112 Chinese people were involved and interviewed in Chinese horticulture industry who had participated in 2016 Hortiflorexpo IPM Beijing. Online questionnaire survey was additionally conducted with 533 Chinese living in Korea and China. The Conjoint Analysis was conducted for region, age, and income group of respondents to estimate the relative importance of rose attributes evaluated by each population group and the utility derived from each attribute level. This process aimed to compare respective population groups for the relative importance and utility to derive implications for targeted marketing strategies. Results - The analysis finds that Chinese rose consumers prioritize rose color, followed by price, flowering stage, and flower size in purchasing roses. They prefer red roses most, followed by pink and then yellow. Moreover, they prefer larger roses, and relatively cheaper roses. The analysis reveals they prefer roses in their 20%-flowering stage to more than 40%-flowering stage. Conclusions - Establishing marketing strategies differentiated for each Chinese consumer group is critical in expanding Korean rose export. The analysis finds while Chinese consumers living in Beijing considered rose color and flowering stage more importantly than their counterparts in Shanghai, Chinese consumers living in Shanghai considered rose price and size more importantly than their counterparts living in Beijing. Therefore, establishing marketing strategies based on these attributes of preference in each region is necessary. Mid & low-income consumer groups considered price as the most important factor, and high-income consumer groups considered rose color as the most important one. It is, thus, important to focus on rose color when establishing a marketing strategy with targeting the high-income consumer group.

A Study on the Japonica Rice Farming in Rural China and Korea (중국의 자포니카 벼 재배와 한국 농촌)

  • Lim, Hyung-Baek;Bae, Sung-Eui;Yoon, Jun-Sang
    • Journal of Agricultural Extension & Community Development
    • /
    • v.10 no.1
    • /
    • pp.103-114
    • /
    • 2003
  • The purpose of this study is to examine Japonica rice farming of China. Asian rice is divided into Japonica and Indica species. Japonica rice represents only less than 20% of Chinese rice output, but it can compete with Korea rice in both price and quality. The rise of income level has expanded the scale of production of Japonica rice in China. China’s adhesion to the World Trade Organization (WTO) has forced Chinese policy makers to face their obligations and responsibilities such as abolishing subsidies on agricultural exports. But being member of the WTO entry also helps China exercise and enhance its influential place in the global economy. Because of geographical proximity and the fact that Korea is ranked second among countries with which China still has a trade deficit, China may seek and plead for an opening of the protected Korean rice market to stabilize prices and prevent excess supply of Chinese rice. Though Korean rice farmers feel that prices are still low, Chinese rice remains far cheaper than Korean rice with the price gap is still on the rise. In anticipation of such fierce competition, Korea must carefully review its current policies and closely follow the evolution of rice production, marketing, and trade in China. This study also suggests some of the possible research using more recent data that should be conducted in the future.

  • PDF

Cultural Landscape Analysis of Market Space in Chinatown - A Case Study of the 'Chung-Ang Market of Dairimdong' - (중국 이주민 거주지역 내 시장공간의 문화경관해석 - 서울시 대림동 중앙시장을 대상으로 -)

  • Chun, Hyun-Jin;Lee, June;Jiang, Long;Kim, Sung-Kyun
    • Journal of the Korean Institute of Landscape Architecture
    • /
    • v.40 no.5
    • /
    • pp.73-87
    • /
    • 2012
  • Nowadays, the Korean society is full of multiculturalism as there are many foreign ethnic enclaves. Many Chinese quarters are built in various parts of Korea along with the increasing population of Chinese immigrant. Especially, the Chinese quarter has shown the sign of time and the cultural characteristic of the local residents. This research is to study the market space of Chinese ethnic enclaves in Dairimdong. This research method is the field study to use a participant observation. Below are the research results: Chinese merchants put a private object such as "tanzi" on a sidewalk and install large awning covered full of sidewalk. Sidewalk transform from an outdoor space into an internal space because of Chinese merchants. Passers-by move to use vehicle roads and transform not only the car's space but also the passers-by space. Urban planners originally classify space into three categories, which are building - sidewalk - vehicles road. However, after Chinese came to the market, Chinese classified space into new three categories which is building - space for both sidewalk and "tanzi" - space for both sidewalk and vehicles road. New classification of space is quite different from the previous. In addition, Chinese thinks that the Dairimdong's Market is a very comfortable place. Because Dairimdong Market have many Chinese physical facilities. Next, Chinese thinks that the Dairimdong Market is a very friendly place to buy Chinese products easily. This market has become a place of consumption for the Chinese. Eventually, Dairimdong's Market has changed because of Chinese immigrants. It is possible to make satisfactory planning and design proposal to build Chinese quarters in the future through the explanation of space and status by way of culture. There are many careless mistakes in previous subjective planning and design proposal of the designers. Thus, it should consider the problems created by their way of use in later planning and design.

Comparative Analysis of Nutritional and Harmful Components in Korean and Chinese Mealworms (Tenebrio molitor) (국산 및 중국산 갈색거저리(Tenebrio molitor)의 영양성분 및 유해물질 비교분석)

  • Yoo, Jeongmi;Hwang, Jae-Sam;Goo, Tae-Won;Yun, Eun-Young
    • Journal of the Korean Society of Food Science and Nutrition
    • /
    • v.42 no.2
    • /
    • pp.249-254
    • /
    • 2013
  • As part of a study on insects as food, the nutritional and harmful components in the mealworm (Tenebrio molitor) were analyzed. In addition, due to a recent introduction of live Chinese mealworms in the Korean market, components between Korean and Chinese mealworms were compared. Analysis of general composition (moisture, crude protein, crude fat, crude ash, crude fiber, and carbohydrates) showed that crude protein (50.32~52.79%) was abundant in both Korean and Chinese mealworm powders, with the protein content in the Chinese mealworm powder higher than that in the Korean mealworm powder by 2.67%. The amino acid compositions were similar, but the fatty acid compositions differed in the Korean and Chinese mealworm powders. The unsaturated fatty acid contents were 76.80~80.55% of the total fatty acid content in the mealworms. The linoleic acid contents in the Korean and Chinese mealworms were $20.8{\pm}1.1%$ and $34.69{\pm}1.9%$; the linolenic acid contents were 0.47% and 1.31%; and the oleic acid contents were $51.40{\pm}0.9%$ and $40.20{\pm}1.5%$, respectively. With respect to harmful components, such as heavy metals and bacteria that cause food poisoning, bacteria such as Escherichia coli O157:H7 and Salmonella spp. were not detected in both Korean and Chinese mealworms, and the mercury content was below the standard values for common foods (Korea, 0.03 mg/kg; China, 0.08 mg/kg).