‘Well-being’ as buzzword in Korean marketing

How well do you understand Korean consumers?

In the little insight below, I will summarize some points to help stakeholders understand the Korean consumers better. They may be very simple, but are indispensable for your success in the very complex and delicate market situation in Korea.

Koreans are found to be more interested in health, child education and wealth creation. The most hyped buzzword in marketing is well-being. A great majority of new products rushed to the market with a name beginning with “well-being”. Koreans use well-being home appliances, live in well-being apartments, deposit money in well-being accounts and eat well-being vegetables.

Most foreigners are usually very surprised with the level of economic and infrastructural development when they first visit Korea. Keep in mind that this is an OECD country with a GDP (PP) per capita of above $21,000 and the 12th largest economy in the world. Be ready to compete!

Internet advertising is very vital in Korea. The nation has the cheapest and fastest broadband in the world and over 96.8% of South Korean mobile phones have Internet access. Select an advertising company which clearly acknowledges this with fluent speaking managers will help.

Koreans usually stick with a particular approach and have a fixed mindset. A foreign approach may be rejected just because they are not used to it, which in turn may be an opportunity. Have this in mind, study the situation and know when to take risks.

The rule of law is well rooted in Korea and it is in most cases consistent and fair as compared to other Asian countries like China where contracts may not be enforced. Investments here are less risky than in other markets without any USA or British legacy. The only issue is that sometimes the laws may be ambiguous and contradictory.

Companies must learn to adapt their products and services to the Korean market. The success of Tesco and failure of Carrefour are important case studies in this regard. Learn to use few expatriates on Korean operations and involve local talent, which will allow you adapt thoroughly to the Korean market.

Although the quality of Korean products has improved tremendously over the years, they still depend heavily on after-sales services. Korean consumers may be very demanding in this regard if foreign companies fail to provide follow-up services.

A very strong competitive edge in engineering, reputation or advanced functionality of a foreign company may be the light of success in the Korean market. Doing it just different from locals may help you win. The iPhone may have succeeded in Korea just by being different and better.

The influence of Korean housewives on the family budget and buying patterns cannot be ignored. They control the budget and have at least 70% stake on any purchase.

The buying patterns of Korean consumers are sometimes not based on functionality, but the desire to stay ahead of everyone in terms of technology or simply having the latest version. Social pressure affects spending behavior and the desire to have something new cannot be underestimated.