Transcript Go Global! - About JustAnswer

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Introduction
Going into global markets.
 Dream of any entrepreneurs.
 Opens the door to many
opportunities.
 International export opportunities.

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Product: Cosmetics
Target Market: South Korea
Description of Product to be
Exported
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Cosmetics
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Men’s cosmetics
Natural/Organic skin products
Cosmeceuticals
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anti-aging
Skin whitening
Anti wrinkles
Anti-ultraviolet
Characteristics of Target
Market
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GNP/capita : $24,200 (2007)
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1/3 from exports of goods.
growing much faster than the population.
similar to those of the other rapidly
developing East Asian countries.
GDP per capita : $26,277 (2007)
 GDP growth rate : 5.1% (2007)
 Size of market
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Nearly 100 million population
Basic Need Potential
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Sales of US
cosmetics in Korea
increased
significantly.
Imported cosmetic
skin care products
accounted for about
USD 451.7 million
Exchange Rate Trends
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Current Rate
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1 KRW = 0.0009
USD
1 USD = 1160.1
KRW
Universal
exchange rate
Import Restrictions
Currency import/export restrictions
 Government regulations
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Beef restrictions
British pork
Red Wood
Italy’s mozzarella cheese
China- made foods including milk
powder.
Price Controls
U.S. goods often perceive to be very
expensive.
 The U.S. - Korea Free Trade
Agreement (KORUS FTA)
 Consumer protection legislation
 Sales tax
 VAT
 Commissions
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Government And Public
Attitude Toward Buying
American Products
Good US-Korea government
relations.
 High interest with “American
Lifestyle”.
 High regard for quality and US food
products.
 Love-hate relationship with foreign
brands.
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Size, Number, And Financial
Strength Of Competitors
On-line shopping malls
 Television home-shopping channels
such as QVC
 Pharmacies/drug stores
 Catalogue orders
 Olive Young by CJ
 W-Store by Kolon
 GS Watson’s by GS
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Socio-Cultural Forces
Cultural diversity
 Family Treatment
 Old customs and traditions
retention
 Religious Affiliations
 Population Ethnicity
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Socio-Cultural Forces
Self Expression
 Gender inequality and sex
discrimination
 Shopping Habits
 View on North Korean affairs
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Attitudes and Beliefs
Business Habits
 Close government /business ties
system
 Close scheduling of business
meetings.
 Meeting over a coffee or a dinner.
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Attitudes and Beliefs
Answering positively
 Respect to seniors.
 Prolonging business decisions
 Reading business cards
immediately
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Attitudes and Beliefs
Ideological Beliefs
 Preservation of national
values
 Respect of democracy
 High regards to freedom and
prosperity
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Attitudes and Beliefs
Peace with surrounding
powers.
 Benefit all mankind.
 Adherence to Confucianism.
 Female domesticity.
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Languages
Korean
 Local dialects
 Chinese (Hanja)
 English
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Education
Spent almost 10% of the GDP for
education.
 97% attained at least secondary
education.
 Attitudes on education culturally and
politically influenced.
 Meritocracy idea
 Many opt out to study abroad.
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Export Marketing
Strategies
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Promotion
Methods
– Media
Advertising
– Trade fair
– Brochures and
fliers
Door to door sales
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Multi-level
Marketing
Distribution and
Sales Channels
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Catalogues orders
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Selling
Factors/Techniques
Conclusion
 An
analysis of exporting
cosmetics to South Korea is
a promising export
opportunity.
 Go to Korea!
References
Doing business in Korea A country commercial guide for U.S.
Companies. Retrieved September 26, 2008 from
http://www.buyusainfo.net/docs/x_3151071.pdf
Remarks in dialogue with internet journalists (March 20, 2005).
March 2005: secretary’s remarks. US Department of State.
Retrieved September 26, 2008 from
http://www.state.gov/secretary/rm/2005/43661.htm
Shin, TJ. Korean women in American labor:analysis of the difference
within and between. Retrieved September 26, 2008 from
http://socrates.berkeley.edu/~tshin/korean_women_050807_full.p
df
South Korean Won vs American Dollar graph Retrieved September
26, 2008 from http://www.rateslist.com/displaycurrency.php
(May 2005). Country profile: South Korea. Retrieved September 26,
2008 from http://lcweb2.loc.gov/frd/cs/profiles/South_Korea.pdf