Research Reports
Strategies to value-added products using germinated hulled rice and to make inroads into Chinese market
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AuthorCho, Myungki
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Publication Date2005.06.01
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Original
Ⅰ. Title
Strategies for value-added products using germinated hulled rice and to make inroads into Chinese market
Ⅱ. Background and purpose of study
With rapid industrialization, the interest on adult diseases is getting higher, which come from unbalance of nutrient intakes and pollution. Recently, the consumption of functional food and healthy food are growing, but the virtue of them is questionable.
In the circumstance of well-being, consumption of health-oriented value-added processed rice is anticipated. The technical development of value-added rice is required in the rice industry.
Germinated hulled rice provide more nutrients like vitamins and inorganic matters, and dietary fiber during germinating. It is a healthy food that is good for dementia, fatness, well-growing, melancholia and so on.
Korean market for germinated hulled rice is in early stage. It depends on the domestic market and no export. To be exporting industry, various value-added products are to be developed.
Especially, under the WTO/DDA Negotiation, the development of value-added products of domestic rice is the one way to elevate competitiveness of Korean rice industry. Even though the foreign countries try to develop products using hulled rice, the domestic efforts to nationally systematic research are meager. In consequence, there is no study to cultivate foreign markets. So the study for products development and opening up a market is necessary.
The main objective of this study is to secure competitiveness of domestic rice industry under globalization by developing various exporting products targeting to Chinese market.
Ⅲ. Contents and scope of study
This study consists of as followings. First, domestic hulled rice market and foundation for export are surveyed. Second, Chinese market for hulled rice is surveyed. Particularly, production, distribution and consumption of hulled rice in China are outlooked. Also, by field survey, distribution system, purchasing behavior of consumers, and importing company are analyzed. Third, competing conditions in Chinese market are investigated by examining importing system and R&D for products. Fourth, the direction for development of product is established via comparing characteristics of domestic and foreign products. Fifth, the development of specific products and panel test of Chinese people are implemented. Sixth, exporting strategy is forming by SWOT analysis of domestic hulled rice and consideration on the institutes of making an export industry.
Ⅳ. Suggestions for use and results of study
Coping with market open, making competitiveness of rive industry and establishing export foundation by developing high value-added products are needed. In 2004, rice market is about 1,100 billion, and germinated hulled rice market is 30-50 billion market.
Germinated hulled rice is known as very good for human health, and several firms are competing severely with growing consumer's demand. As the function of germinated hulled rice become generally known, a variety of products using it are introduced into market as form of rice cake, beverage, noodle, cookie.
So far, export goods to China have been raw materials and processed products. Food market in China is a very diverse. Based upon region and class, there are different needs and lifestyle of consumers. So there should be detailed strategy for germinated hulled rice to enter Chinese market.
Germinated hulled rice market in China is the beginning stage. The producers and sales area is very limited. The production and distribution of germinated hulled rice is accomplished recently. Before then, general hulled rice was in market. The awareness of consumer for germinated hulled rice market is very low, and part of high class know the function of germinated hulled rice market. However, recognition for germinated hulled rice market is getting higher.
The new product for Chinese market is conceived in form of cooked rice, gruel, cake, cookie, cosmetics. The survey of Chinese consumers shows that the knowledge about germinated hulled rice is low. However, low price and the product development will be helpful for market growth.
For Korean germinated hulled rice market to enter Chinese market and raise market share, it will be necessary that top-end brand marketing and niche marketing. To be successful market entering, market position will be early made and awareness for product should be raised. For that, market segmentation and target marketing is needed. Marketing strategies for market finding, maintenance, demand elevation have to be effectively used in various and simultaneously.
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