[Your Name Here]
Jan 20, 2016
[Your Name Here]
Introduction
Going into global markets.Dream of any entrepreneurs. Opens the door to many
opportunities. International export opportunities.
– Product: Cosmetics– Target Market: South Korea
Description of Product to be Exported
Cosmetics– Men’s cosmetics– Natural/Organic skin products – Cosmeceuticals
anti-aging Skin whitening Anti wrinkles Anti-ultraviolet
Characteristics of Target Market
GNP/capita : $24,200 (2007) – 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
– Nearly 100 million population
Basic Need Potential
Sales of US cosmetics in Korea increased significantly.
Imported cosmetic skin care products accounted for about USD 451.7 million
Exchange Rate Trends
Current Rate– 1 KRW = 0.0009
USD– 1 USD = 1160.1
KRW
Universal exchange rate
Import Restrictions
Currency import/export restrictionsGovernment regulations
– 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 legislationSales taxVATCommissions
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.
Size, Number, And Financial Strength Of Competitors
On-line shopping mallsTelevision home-shopping channels
such as QVCPharmacies/drug storesCatalogue orders Olive Young by CJW-Store by KolonGS Watson’s by GS
Socio-Cultural Forces
Cultural diversityFamily TreatmentOld customs and traditions
retention Religious AffiliationsPopulation Ethnicity
Socio-Cultural Forces
Self ExpressionGender inequality and sex
discriminationShopping HabitsView on North Korean affairs
Attitudes and Beliefs
Business HabitsClose government /business ties
systemClose scheduling of business
meetings.Meeting over a coffee or a dinner.
Attitudes and Beliefs
Answering positivelyRespect to seniors.Prolonging business decisionsReading business cards
immediately
Attitudes and Beliefs
Ideological BeliefsPreservation of national
valuesRespect of democracyHigh regards to freedom and
prosperity
Attitudes and Beliefs
Peace with surrounding powers.
Benefit all mankind.Adherence to Confucianism. Female domesticity.
Languages
KoreanLocal dialectsChinese (Hanja)English
Education
Spent almost 10% of the GDP for education.
97% attained at least secondary education.
Attitudes on education culturally and politically influenced.
Meritocracy ideaMany opt out to study abroad.
Export Marketing Strategies
Promotion Methods– Media
Advertising– Trade fair– Brochures and
fliers Door to door sales
Multi-level Marketing
Distribution and Sales Channels
Catalogues orders 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.pdf
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