1
Go Global!
Your Name Here
2
Introduction

• Going into global markets.
• Dream of any entrepreneurs.
• Opens the door to many opportunities.
• International export opportunities.
• Product Cosmetics
• Target Market South Korea

3
Description of Product to be Exported

• Cosmetics
• Mens cosmetics
• Natural/Organic skin products
• Cosmeceuticals
• anti-aging
• Skin whitening
• Anti wrinkles
• Anti-ultraviolet

4
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

5
Market Screening
6
Basic Need Potential

• Sales of US cosmetics in Korea increased
  significantly.
• Imported cosmetic skin care products accounted
  for about USD 451.7 million

7
Exchange Rate Trends

• Current Rate
• 1 KRW 0.0009 USD
• 1 USD 1160.1 KRW
• Universal exchange rate

8
Import Restrictions

• Currency import/export restrictions
• Government regulations
• Beef restrictions
• British pork
• Red Wood
• Italys mozzarella cheese
• China- made foods including milk powder.

9
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

10
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.

11
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 Watsons by GS

12
Socio-Cultural Forces

• Cultural diversity
• Family Treatment
• Old customs and traditions retention
• Religious Affiliations
• Population Ethnicity

13
Socio-Cultural Forces

• Self Expression
• Gender inequality and sex discrimination
• Shopping Habits
• View on North Korean affairs

14
Attitudes and Beliefs

• Business Habits
• Close government /business ties system
• Close scheduling of business meetings.
• Meeting over a coffee or a dinner.

15
Attitudes and Beliefs

• Answering positively
• Respect to seniors.
• Prolonging business decisions
• Reading business cards immediately

16
Attitudes and Beliefs

• Ideological Beliefs
• Preservation of national values
• Respect of democracy
• High regards to freedom and prosperity

17
Attitudes and Beliefs

• Peace with surrounding powers.
• Benefit all mankind.
• Adherence to Confucianism.
• Female domesticity.

18
Languages

• Korean
• Local dialects
• Chinese (Hanja)
• English

19
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.

20
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

21
 Conclusion

• An analysis of exporting cosmetics to South Korea
  is a promising export opportunity.
• Go to Korea!

22
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 secretarys
  remarks. US Department of State. Retrieved
  September 26, 2008 from http//www.state.gov/secr
  etary/rm/2005/43661.htm
• Shin, TJ. Korean women in American laboranalysis
  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