[your name here]. introduction going into global markets. dream of any entrepreneurs. opens the door...

[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