In the past two years, there has been a very special phenomenon at international airports such as Qingdao and Beijing: more and more passengers are taking advantage of the free checked baggage allowance on international flights to carry large quantities of Chinese rice to South Korea.
Most of them are dressed modestly, holding suitcases, some alone, some in groups of three or five, arranged in an orderly manner in the baggage drop-off area. They stuffed their suitcases to the brim, almost every one of them exceeded the standard size, even more than 100 kilograms, apparently carefully prepared to make the most of the free checked baggage allowance.
It is understood that the reason why these passengers choose to bring rice into South Korea is mainly because of the high price of rice in the Korean market.
These people are trying to bring lower-priced Chinese rice to South Korea and sell it at a higher price to make the difference. In order to pass the inspection, they even vacuum-packed the rice and tried to make more money by putting more rice in the suitcase.
In our eyes, no matter how expensive rice is, how expensive can it be? In this way, the transportation fee can be cheaper than that of local rice?
And South Korea uses its strength to tell you that even if it is transported twice, it will be cheaper than their own rice!
First of all, South Korea's land area is limited and the quality of the land is not high, resulting in a small total rice production. At the same time, the cost of growing rice for farmers is rising, including labor costs, land use costs, and agricultural production efficiency.
In addition, the increase in the wages and living expenses of migrant workers, as well as the shortage of agricultural labor and the rising cost of land conversion, have also directly pushed up the cost of rice production. This has led to a decrease in the production and supply of rice in South Korea while the price has been rising.
In addition, the agricultural protection policies implemented by the Korean government have also affected the price of rice. These policies, including high tariffs, import quotas and quality inspection standards, have restricted foreign rice imports and reduced the supply of rice to the market, thereby driving up prices.
In addition, the manipulation of grain pricing by the South Korean chaebols, the interest rate hike in the United States, and the rise in global rice prices have also affected the price of rice in South Korea. Therefore, due to a combination of various reasons, the unit price of rice in South Korea has risen to 25-50 yuan per kilogram.
Under such circumstances, the price of Korean rice is almost several times that of Chinese rice. With the advantage of cheap air tickets and large free checked baggage allowance in the off-season, the business acumen of the Chinese people began to turn, so there was an operation of purchasing rice from South Korea on the reverse basis. Some people have probably calculated that such a difference minus the cost of low air tickets and other costs can almost make two thousand a day.
There are many situations similar to South Korea's reverse purchasing of rice, and there is a trend change more and more.
One of the major categories is health and wellness products, such as traditional tonics, organic food, etc., and there is also a large category of high-tech products such as smart home devices, drones, 3D printers, etc.
In addition, China's unique cultural and artistic products have also emerged in reverse daigou. For example, Chinese painting, calligraphy, porcelain, embroidery and other arts and crafts with strong Chinese characteristics. Clothing, shoes and hats are also one of the hottest reverse purchasing industries overseas, especially in Europe and the United States.
One area that is rapidly emerging is beauty and skincare. With the rise of domestic brands and the popularity of national tide culture, some domestic beauty and skin care products are becoming more and more popular with overseas consumers, followed by the phenomenon of declining sales and price diving of overseas skin care products and beauty products.
This increasingly large-scale reverse purchasing tide undoubtedly reflects some of China's distinctive characteristics and advantages:
First of all, the price advantage of Chinese commodities is an important factor in the rise of reverse daigou. With the development of China's manufacturing industry, a large number of high-quality and inexpensive goods have emerged, and the prices are more competitive than other countries.
For example, clothing, shoes and hats are more and more diverse in design, the quality has always maintained a high level, and the quantitative production makes the price very favorable, which will lead to the increasing popularity of Chinese goods in overseas markets, and many consumers are willing to buy Chinese goods through purchasing channels to enjoy more favorable prices.
Secondly, the rise of China's e-commerce platforms has provided convenience for reverse daigou. The capabilities of Chinese e-commerce platforms such as Taobao and JD.com are undoubted. At the same time, the improvement of China's logistics system also provides a guarantee for the rapid distribution of goods, and further promotes the development of reverse purchasing.
Of course, e-commerce is only a reverse purchasing channel, mainly because the advantages of Made in China have been seen by the world.
In addition, the rise of Chinese brands has also provided more options for reverse daigou. In the past, Korean cosmetics relied on Korean dramas and idol groups and other Hallyu culture, which has set off a boom in China, but apart from such differentiated and conceptual marketing, their advantages in products are not outstanding.
In recent years, Chinese brands have significantly improved in terms of quality and design, and have gradually won the recognition of overseas consumers because they are fundamentally in line with the needs of consumers. This will undoubtedly also form a consumption orientation.
The biggest advantage of buying rice from South Korea or buying clothing, shoes and hats from overseas is the price advantage, which is also the most prominent advantage, but why are the prices of certain products in China relatively lower? This is actually a question worth considering.
First of all, there is no doubt that the mainland has a huge production capacity and supply chain system, which makes the production cost of many goods relatively low. This is mainly due to the rapid development of China's manufacturing industry and the play of scale effect, mass production can share fixed costs, thereby reducing the cost per unit of product.
Secondly, fierce market competition is also an inevitable reason for low prices. In China, where market share is limited, a large number of companies and brands in all walks of life want to gain a larger share, and the price war strategy has almost become one of the necessary options. They attract consumers by lowering prices, so that consumers can buy goods at a lower price.
In addition, the government's price control policy has also had an impact on the price level. In order to maintain economic stability and people's livelihood and well-being, the government will adopt a series of measures to regulate prices, such as limiting the maximum selling price of certain commodities and providing subsidies. These policies have helped to lower the prices of some goods, so that consumers can enjoy more affordable prices.
Reverse purchasing reflects the difference between China and other countries in terms of commodity prices and market demand, and China's purchasing agents are able to use their own information advantages to provide consumers with convenient purchase channels are also reminding us of how to more effectively transmit and share information to meet the needs of consumers in today's highly developed information;
Market stability and fair competition are also links that cannot be ignored. Measures to strengthen supervision and regulate market behavior, as well as the consciousness of purchasing agents and consumers to comply with relevant regulations and laws and regulations, can better play the positive role of reverse purchasing agents and promote the common development of the international economy.
In short, in this era of deepening globalization, the behavior of purchasing agents has undoubtedly built a bridge for international commodity circulation and cultural exchanges. However, under the premise of ensuring market stability and fair competition, how to better play the role of purchasing agents and promote friendly exchanges and cooperation between countries is still a question worth thinking about and exploring.
Resources:
"2023 Beauty Keywords: Japan and South Korea Prices Plunge, Anti-Purchasing Brings Fire to Domestic Products - Beijing Business Daily"
"Made in China and Sold in the World" Reverse Overseas Shopping "Out of the Circle" - China Business Daily