Understanding the Demand System Model

Oct 13, 2025 by thesweetdesigns.com 0 views

Revealing Indonesian Mangosteen Market Opportunities in China: Analysis of Import and Competition Demand

The demand for mangosteen imports in the Chinese market continues to increase, making this country one of the biggest importers of this tropical fruit. Thailand, as a market leader, holds the largest market share, followed by Indonesia and Malaysia. Research conducted by Patricia Srisere Ikaria Situmorang (197039002) entitled "Analysis of Import Demand for Mangosteen in the Chinese Market" examines the factors that affect the demand for mangosteen imports in China, especially from three main suppliers, namely Indonesia, Thailand and Malaysia.

Understanding the Demand System Model

This study uses a Demand System Model for almost ideal (AIDS) with an Econometric and SAS application approach. This model analyzes the effect of import mangosteen prices from Indonesia on demand in the Chinese market. The results show that the market share of Indonesia, Thailand and Malaysia is 26%, 68%, and 6% respectively. The Demand System Model is a crucial tool in understanding the dynamics of the mangosteen market in China, as it provides insights into the factors that influence the demand for imports and competition relations between suppliers.

The Role of Cross Elasticity in Understanding Competition

Cross elasticity plays an important role in understanding the competition between products. Positive values in cross elasticity indicate that the product is a substitution, meaning that an increase in the price of one product will increase the demand for another product. In the context of the mangosteen market in China, the positive cross elasticity between the price of Indonesian mangosteen and the price of Thai and Malaysian mangosteen shows the relationship of substitution or competition. That is, when Thailand or Malaysia experienced a decrease in the share of imports, Indonesia had the opportunity to enter the Chinese market and increase the share of its mangosteen imports.

Opportunities and Challenges for Indonesia

This finding provides an opportunity for Indonesia to increase the market share of Mangosteen in China. By understanding the dynamics of prices and consumer preferences in the Chinese market, Indonesia can develop marketing strategies and increase the competitiveness of mangosteen products. However, Indonesia still faces challenges in competing with Thailand, which already has a strong reputation and large market share in China. To overcome these challenges, Indonesia needs to improve the quality of the mangosteen exported to China to meet consumer standards and preferences.

Suggestion for Indonesia

Quality Improvement

Indonesia needs to improve the quality of the mangosteen exported to China to meet consumer standards and preferences. This can be achieved through the implementation of quality control measures and the development of new varieties of mangosteen that are more suitable for the Chinese market.

Promotion and Marketing

Effective promotion and marketing can increase Chinese consumer awareness of Indonesian mangosteen and build a positive product image. This can be achieved through the use of social media, online advertising, and other marketing strategies that are tailored to the Chinese market.

Market Diversification

Indonesia needs to expand its export market to reduce dependence on the Chinese market. This can be achieved through the development of new export markets in other countries, such as the United States, Europe, and Southeast Asia.

Conclusion

This research provides an important insight into the dynamics of the mangosteen market in China. By understanding the factors that influence the demand for imports and competition relations between suppliers, Indonesia can develop an effective strategy to increase mangosteen exports and gain profits from promising market opportunities in China. The findings of this study highlight the importance of cross elasticity in understanding competition and the need for Indonesia to improve the quality of its mangosteen exports and develop effective marketing strategies to increase its market share in China.

Recommendations for Future Research

Future research should focus on the following areas:

Market segmentation: Conducting market segmentation analysis to identify the specific needs and preferences of Chinese consumers.
Product development: Developing new varieties of mangosteen that are more suitable for the Chinese market.
Marketing strategies: Developing effective marketing strategies that are tailored to the Chinese market.
Export market diversification: Expanding Indonesia's export market to reduce dependence on the Chinese market.

By addressing these areas, Indonesia can develop a more effective strategy to increase its mangosteen exports and gain profits from promising market opportunities in China.

Introduction

The demand for mangosteen imports in the Chinese market continues to increase, making this country one of the biggest importers of this tropical fruit. Thailand, as a market leader, holds the largest market share, followed by Indonesia and Malaysia. In this article, we will answer some of the frequently asked questions related to the analysis of Chinese import demand for mangosteen fruit.

Q: What is the current market share of Indonesia, Thailand, and Malaysia in the Chinese mangosteen market?

A: According to the research conducted by Patricia Srisere Ikaria Situmorang (197039002), the market share of Indonesia, Thailand, and Malaysia in the Chinese mangosteen market is 26%, 68%, and 6% respectively.

Q: What is the role of cross elasticity in understanding competition in the mangosteen market?

A: Cross elasticity plays an important role in understanding the competition between products. Positive values in cross elasticity indicate that the product is a substitution, meaning that an increase in the price of one product will increase the demand for another product. In the context of the mangosteen market in China, the positive cross elasticity between the price of Indonesian mangosteen and the price of Thai and Malaysian mangosteen shows the relationship of substitution or competition.

Q: What are the opportunities and challenges faced by Indonesia in the Chinese mangosteen market?

A: Indonesia faces opportunities to increase its market share in the Chinese mangosteen market by understanding the dynamics of prices and consumer preferences in the Chinese market. However, Indonesia still faces challenges in competing with Thailand, which already has a strong reputation and large market share in China.

Q: What are the suggestions for Indonesia to increase its market share in the Chinese mangosteen market?

A: The suggestions for Indonesia to increase its market share in the Chinese mangosteen market include:

Quality improvement: Indonesia needs to improve the quality of the mangosteen exported to China to meet consumer standards and preferences.
Promotion and marketing: Effective promotion and marketing can increase Chinese consumer awareness of Indonesian mangosteen and build a positive product image.
Market diversification: Indonesia needs to expand its export market to reduce dependence on the Chinese market.

Q: What are the recommendations for future research?

A: The recommendations for future research include:

Market segmentation: Conducting market segmentation analysis to identify the specific needs and preferences of Chinese consumers.
Product development: Developing new varieties of mangosteen that are more suitable for the Chinese market.
Marketing strategies: Developing effective marketing strategies that are tailored to the Chinese market.
Export market diversification: Expanding Indonesia's export market to reduce dependence on the Chinese market.

Q: What are the implications of this research for the Indonesian government and industry?

A: The implications of this research for the Indonesian government and industry are:

Policy development: The Indonesian government needs to develop policies that support the development of the mangosteen industry, including quality improvement and market diversification.
Industry development: The Indonesian industry needs to develop effective marketing strategies and improve the quality of mangosteen exports to meet consumer standards and preferences.

Q: What are the limitations of this research?

A: The limitations of this research include:

Data availability: The availability of data on the Chinese mangosteen market is limited, which may affect the accuracy of the results.
Methodological limitations: The use of a Demand System Model may not capture all the complexities of the mangosteen market.

Q: What are the future directions for research on the Chinese mangosteen market?

A: The future directions for research on the Chinese mangosteen market include:

Longitudinal analysis: Conducting longitudinal analysis to examine the changes in the Chinese mangosteen market over time.
Comparative analysis: Conducting comparative analysis to examine the differences between the Chinese mangosteen market and other markets.
Case studies: Conducting case studies to examine the experiences of Indonesian companies in the Chinese mangosteen market.