Transcript 1 - intommupathways

Changes in Korean female
consumers’ perception and
purchasing behavior for imported
cosmetics and marketing
strategies for the foreign cosmetic
brands in the Korean market.
NCUK NO. : IMPG-15-0020
NAME : Yubin KIM
1
To investigate the perception
and recent purchasing trends
of Korean female consumers
for imported cosmetics and to
draw marketing strategies for
foreign cosmetic brands in
the Korean market.
2
1.
Imported cosmetic brands to Korea →
“Luxury Image”
(Traditionally good reputation and strong
loyalty from Korean female shoppers with the
high quality and name value.)
 The number of the cosmetic brands in a department store
(Hyundai DS in Daegu city : Open in August, 2011) – except
the men/perfume brands and multiplex stores
The number
of brands
Imported
Domestic
Total
23 (74.2%)
8 (25.8%)
31 (100%)
(Table 1)
3
2.
The growth of Korean cosmetics

The so-called ‘Load shop’ cosmetic brands.
(Unit : One hundred million won – Korean currency)
Brand
Name
2015
Sales
2014
Increase
Sales
2013
Increase
Sales
Increase
The face
shop
6,291
190
6,101
629
5,472
-
Innisfree
5,921
1,354
4,567
1,239
3,328
-
Able C&C
4,079
-304
4,383
-41
4,424
-
It’s skin
3,096
677
2,419
1,895
524
-
Nature
Republic
2,800
248
2,552
835
1,717
-
ETUDE
2,578
-232
2,810
-376
3,186
-
TONYMOLY
2,199
147
2,052
352
1,700
-
26,964
2,080
24,884
4,533
20,351
-
Total
(Table 2)
→ Jung (2016)
4
→ Bloger ‘ansthetic’
(2015)
Hong Kong
→ In Singapore
5
3.
Stagnation of the imported cosmetic brands
Case 1. Japanese Brands in Korea
 The decrease of the sales performance and number of stores :
• The cosmetics sales ranking in Lotte Duty Free shop
① Hu : a Korean brand (in the first quarter of 2015)
② Seol Hwa Su : a Korean brand (in the first quarter of 2015)
.
.
⑦ SK-II (in September, 2015 / Ranking no. 1 in 2013)
☞ The declaration of withdrawing some duty free stores from
Korea in 2015.
• Orbis and DHL
 The decline of import amount → the next page
→ Han (2015)
6
Case 2. Import Amount from USA, France and the UK
Japan
USA
350,000
300,000
150,000
Import Value
Import Value
200,000
100,000
50,000
0
250,000
200,000
150,000
100,000
50,000
0
2009
2010
2011
2012
2013
2014
2015
2009
2010
2011
Year
2013
2014
2015
2013
2014
2015
Year
France
The UK
300,000
50,000
250,000
Import Value
Import Value
2012
200,000
150,000
100,000
50,000
0
2009
2010
2011
2012
Year
2013
2014
2015
40,000
30,000
20,000
10,000
0
2009
2010
2011
2012
Year
♠ Unit : USD1,000 / HS code : 3304
→ Korea Customs Service website (2009)
7
4.
The change of distribution channels : offline
→ online, home shopping and overseas
direct purchase.
8
Recently, are there any changes in Korean
female consumers’ perception for imported
cosmetic in reality? If yes, what changes
have occurred?
 Do the changes lead changes of their
purchase behavior? If so, what brands do
they actually purchase? (What do they
purchase more between domestic and
imported cosmetic brands?)
 What marketing strategies are needed for
foreign cosmetic brands to keep or raise
the sales performance?

9
What is Marketing?
♦ Definition :
The process to make customers feel satisfied and gain value
from them + “Competition”
♦ Terms of reference for International Marketing :
Macroenvironment :
Economic, Socio-Cultural, Political-Legal,
Technological Influences
Microenvironment :
Attractiveness of the Target Market,
Capability of the Company
→ Ellis-Chadwick and Jobber (2013, pp.4-5, 775-779)
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Marketing Failure vs. Success
♦ Knight (1995) – Failed Cases :
Sameness :
The approach method to the problem
Difference:
Culture vs. Trend
♦ Barson (2007, 2008) – Successful Cases:
Eight Traits for Successful Brands :
Product, Research, Personality, Targeting,
Integration, Connection, Consistency, Distribution
Limitation:
They are not global marketing cases.
11
Methodology
Multi
Methods
Primary
Quantitative
Questionnaire
Secondary
Qualitative
Literature
Interview
12
Questionnaire
 Purpose : Statistical Data Collection
 Object :
Korean women customers
Randomly nominated in accordance with each
age group
Different occupations and incomes
 Distribution :
Online Quota (Google survey) + Snowball
Technique
200 people (including worthless response)
13
 The composition of questions :
The total number of questions : 17
Basic questions : age, occupation, income
The level and elements of interest
The logical flow : The brands that respondents
used → are using → will use & the reasons
Directly asking questions : Which one do you
prefer between domestic and imported brands?
Why?
Purchase channels
Objective : 16 / Subjective : 1 (optional)
Mandatory questions : 9
Multiple response allowance questions : 6
14
 The current state :
The present number of respondents : XX
Preference between domestic and imported
brands
Figure
(Percentage)
Domestic
Imported
Don’t care
Total
XX
(XX%)
XX
(XX%)
XX
(XX%)
XX
(100%)
 Limitation:
The concentric distribution in a specific age range
→ Paper question sheets → Geographical limit
Logical errors in some questions → Solved by
modifying the questions
No response or Insincere response → To secure
plentiful respondents
 Analysis :
To analyze the correlation with variables (age, income)
To connect with the data from interviews
15
Interview
 Purpose : Non-Numerical Data Collection
(Psychological Factors + Purchase Decision Process)
 Object : 3~5 people among the respondents who
answer the questionnaire
 Interview Type : Informal Interview
(Unstructured or Semi-structured)
 Alternative Method :
A Small Focus Group
2~3 Korean Female Students in INTO Manchester
16
 The current state :
The present number of interviewees : 1
32 years old, a self-employed person
The changes she has felt about cosmetic brands
- Domestic Brands : Improved Quality
- Imported Brands : Expensive but High Quality
* old thinking about the image rather than changes
The difference between domestic and imported
cosmetics
- Domestic Brands : Wide range of prices, More
suitable for Korean women’s skin (skincare line)
- Imported Brands : Small Amount for the price
The changes she has felt about the Korean
cosmetic market
- The increase of the number of brands, stores and
product lines → Difficulty to select products
because of the increased sorts
17
Limitation :
The risk to be concentrated on a specific age
range and informal type interview → The effort to
find interviewees in wide spread of ages
Analysis :
To analyze the data in words, which is difficult to
be statistically converted
To state data in figures, which is frequently
mentioned and connect with statistics drawn from
the questionnaire
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Literature
 Purpose :
To get more knowledge or theories about
customer behavior and marketing
To help a solid conclusion
Finally, the research will be triangulated
by comprehensively mixing each data
collected by the above methods.
19
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