Korean Media: China's Share of Indian Consumer Goods Market Declines, Opening Opportunities for Korea!
On July 30, Korean media outlet The Korea Daily published an article stating that according to analysis by the Korea International Trade Association, South Korea’s consumer goods—boosted by the rapid rise of Hallyu (Korean Wave)—should now turn their attention toward India to solidify its position as the next major core market. This is because it is projected that by 2030, India’s affluent middle class will grow more than 1.5 times, reaching 720 million, while Hallyu content has already raised significant awareness among Indian consumers regarding Korean consumer products; thus, sustained delivery of consumer experience alone could be enough to establish India as a key market.
The Korea International Trade Association’s Institute for International Trade and Business recently released a report titled "Focusing on India’s 500 Million Middle Class: Analysis of South Korea’s Export Competitiveness in Consumer Goods and Market Entry Strategies." The report indicates that from 2018 to 2024, India’s consumer goods import market grew at an average annual rate of 8%. With India’s middle class expected to expand from 430 million in 2020 to 1.02 billion by 2046, the consumer goods import market is highly likely to continue expanding.
Significant changes are also taking place within the market itself. China, the largest participant in India’s consumer goods market, saw its market share decline from 27.1% in 2018 to 18.5% in 2024. Meanwhile, during the same period, ASEAN’s market share rose from 4.9% to 8.5%, with an average annual growth rate of as high as 18.2%.
The report emphasizes that under current circumstances, Korea must accelerate its efforts to leverage key export products such as basic cosmetics, sunscreens, and instant noodles to strengthen its market presence. It identifies instant coffee and rice vermicelli as products with strong potential for market expansion, while seaweed and frozen fish are seen as having significant export growth potential. The report stresses: “Rather than blindly expanding into all product categories, Korea should focus on those already possessing competitive advantages.”
Furthermore, strategies need to be adjusted to encourage repeat purchases. A survey conducted by the research team among consumers in major urban centers including Delhi, Mumbai, and Bangalore revealed that consumer awareness of Korean consumer goods has reached as high as 89.9%, while customer satisfaction rates range between 82% and 92%. Additionally, consumers exposed to Hallyu content showed higher willingness to pay, with premium price premiums reaching up to 14%–21%, confirming the existence of a price premium effect. However, conversion rates—i.e., turning initial experiences into preference and continued usage—remain low, ranging only from 20% to 40%.
The report notes: “While first-time purchases may be influenced by advertising and Hallyu content, satisfaction and accessibility are the primary drivers of repeat purchases. Brands must position themselves as easily accessible products—not merely focus on increasing brand awareness.”
Original article: toutiao.com/article/1872102218307660/
Disclaimer: The views expressed in this article are solely those of the author.