South Korean media South Korean companies were squeezed out of the Chinese market, what happened?

Mondo Finance Updated on 2024-01-28

In recent years, the competition in the Chinese market has become more and more fierceKorean companiesThe competitiveness in the Chinese market is relatively weakened, and it is gradually being squeezed out of the market by Chinese enterprises. In the past, South Korea was in steel,ShipbuildingSemiconductorsand textiles and other fields have always had a comparative competitive advantage, and China needs to import related products from South Korea. However, with the rapid rise of Chinese enterprises, their technology and competitiveness continue to improve, resulting in:Korean companiesThe competitiveness of the company has declined comparatively. South Korea's "North Korea" reported that Chinese companies are in the iron and steel,LCD panelsSmartphones, electric vehicles,New energybattery andShipbuildingand other fields have gained a huge market share, significantly ahead ofKorean companies。In 2015, China was inLCD panelsand the market share of the OLED display industry reached 36%, surpassing South Korea and becoming the global leader. InNew energyIn the field of automobiles and power batteries, the advantages of Chinese companies are also gradually emerging, accounting for more than 60% of the global market share. China inShipbuildingThe field also surpassed South Korea's newly acquiredShipbuildingThe order exceeds that of South Korea and Japan combined. There are signs that the rapid development of Chinese enterprises has begun to squeezeKorean companiesMarket share in the Chinese market,Korean companiesSerious challenges are facing.

China is South Korea's largest partner, largest export market and largest importer, and the two countries have the best exchanges with South KoreaEconomyDevelopment plays an important driving role. However, with the rise of Chinese companies in several fields,Korean companiesFacing the challenge of declining demand for Korean products and declining market share in China. According to official South Korean data, from January to July 2023,China and South Korea**The size of the surplus reached 14.4 billion US dollars, and the ** deficit continued to widen. Especially in the ASEAN market, Chinese companies are inNew energyThe market share of the automotive and power battery segments is rising rapidlyKorean companies's market share continues to decline. The share of Chinese companies in global newbuilding orders has reached 68%, far exceeding that of South Korea and Japan. These data show that the impact of the Chinese market on Korean companies cannot be ignoredKorean companiesIt is necessary to face the competition and challenges in the Chinese market.

1.Lack of technology and competitiveness: Chinese companies have made great strides in technological innovation and product research and development, making it a leading position in many fieldsKorean companiesThe technology and competitiveness of the company are relatively weak, resulting in a gradual decline in market share.

2.Lack of continuous innovation: Chinese enterprises are constantly innovating and implementing continuous innovationKorean companiesThe ability to innovate in some key areas is relatively insufficient, and it is unable to quickly adapt to market changes and meet consumer needs.

3.Shifting market demand: The rapid changes in market demand in China are also responsibleKorean companiesOne of the reasons for the dilemma. With ChinaEconomyThe development of the people's living standards and the improvement of people's living standards, Chinese consumers have a high interest in product qualityBrand valueAnd the requirements for individual needs are getting higher and higher, which givesKorean companiesBrings more pressure.

4.Intensified global competition: In addition to the rise of Chinese companies, competition is also intensifying on a global scale. Companies from other countries are also making inroads into the Chinese market, making thatKorean companiesThe competition is more intense, and it is difficult to maintain market share and competitive advantage.

In view of the plight of Korean companies in the Chinese market, they need to think and adjust their development strategies from the following aspects:

1.Strengthen technological innovation and R&D capabilities to improve product quality and competitiveness to meet the growing needs of the Chinese market.

2.Deepen cooperation with Chinese enterprises, cooperate more closely in technology, R&D, production and marketing, give full play to their respective advantages, and achieve mutual benefit and win-win results.

3.Increase the understanding and research of the Chinese market, and understand the needs and preferences of Chinese consumers, according to the needs of the marketProduct positioningand innovation to provide competitive products.

4.Find new market opportunities and development directions, reduce over-dependence on the Chinese market, open up markets in other countries and regions, and reduce risks and pressures.

5.** Support and policy guidance, for:Korean companiesProvide a more favorable policy environment, facilitation and financial support to help them enhance their competitiveness and innovation capabilities.

6.Strengthen personnel training and technical exchanges, and improveKorean companiesThe quality of talents and innovation ability, experience exchange and cooperation with Chinese enterprises, and promote common development.

In summary,Korean companiesFacing the dilemma of declining competitiveness in the Chinese market, it is necessary to strengthen technological innovation, deeply understand market demand, strengthen cooperation and develop new market opportunities to meet the challenges of the Chinese market.

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