When it comes to marketing in Asia, there is a broad array of marketing tools and resources that can be used, but simultaneously the approach should always be region-centric. Even though the countries are located close to each other, marketing creatives, tools, and messages differ considerably in Korea, Japan, and China. For instance, ultra-conservatism of the Japanese or the way Chinese love gold and red colors cannot be applied to another substantially different country like South Korea.
South Korea Market Overview
South Korea is one of the most open and relatable markets in Asia. The Korean market has numerous similarities with European and American markets, which makes it less complex in terms of entry and promotional strategies.
Technology had an extremely positive effect on the development of the Korean market. Known for the fastest internet connection, South Korea is also famous for its technological, retail, and cosmetic products. Currently, the overall size of the economy is estimated to be $1.65 trillion. Moreover, South Korea has one of the most welcoming startup ecosystems, primarily supporting the local entrepreneurs.
As for Korean customers, they are tech-savvy and, therefore, know far more about technology and service than most of the Asian consumers. Moreover, Koreans are no strangers to getting things for free, which has always been a part of their culture. It might be taken as a reluctance to spend money by Western marketers. On the contrary, South Korean consumers are subject to FOMO (fear of missing out). In a nutshell, the local customers follow the latest trends and buy the newest and, therefore, expensive products. Consequently, timing is of the essence when entering the Korean market.
Transparency of the market and openness of the local customers make the Korean market attractive for foreign companies. Clearly, there are distinctive differences in mentality, culture, shopping, and online behavior in general, which should be taken into consideration before launching the ad campaigns in Korea. To get a better understanding of the market, it is crucial to know about the interests of local customers.
The list of top-selling products and services in South Korea:
• Educational services
• Interior items and home goods
• Fashion and luxury goods
• Cosmetic products
• Nutraceuticals
• Games and entertainment
• Computer software
• Healthy food
• Travel and tourism
In South Korea, it is impossible to sell a pig in a poke. Korean consumers have not only high requirements for the quality of products but also the level of after-sales services. The value system in South Korea is based on respect, reputation, and honesty. Therefore, false advertising promises will negatively affect brand reputation. In most Asian countries, there are no exceptions to this rule.
Digital Landscape
Having a strong online presence in the target market is crucial for the success of the business. To succeed in such a large and competitive market like Korea, the marketing strategy has to be localized and culturally optimized. The people-centric approach works like a charm in South Korea, as it does in many other Asian countries.
Consumers in South Korea are technodexterous and, therefore, prefer to shop online. However, before the final buying decision, it is typical for Koreans to do research and find as much information as possible about the product. The research is usually based on reviews posted on social networks and blogs, as it is one of the key steps of the local shopping process. An impulsive buying decision is an alien concept to the South Korean customers.
Digital Channels
Digital channels in Korea somewhat differ from the ones familiar to Western marketers. First, Google does not rule all in South Korea. Instead, there are Naver and Daum. The essential difference between Naver and Google is that the Korean portal does not function as a search engine in a traditional understanding. Even though the local online shopping decisions or internet surfing starts with Naver, it does not work the way Google does.
It is crucial to understand that standard SEO practices cannot be applied here either. As a content platform and a search portal, Naver practically forms the online behavior of the users.
Naver SERP redirects its users to portal-related sections and products. The first SERP block is always reserved for paid ads. The next block retrieves and displays information from other portal sections, like blogs or news. Organic search results from the web are at the very bottom of the page, making the search results race pointless in South Korea. Therefore, entering the Korean market with a Google-only strategy will critically limit the capability of ad campaigns.
Regarding localization, ads and websites should be culturally optimized and translated. Naturally, the localization should not be performed without prior consulting with native speakers.
When it comes to email marketing in South Korea, it is a lost cause. First, Koreans use emails for business communication. Second, there is a spam issue in Korea, that influences the email open rate. Therefore, promotional emails will most likely mix with endless spam. Third, building an active email database in Korea is physically impossible because of the extremely low click rates and spam waves.
KakaoTalk is the leading messaging app in South Korea. In 2018, the app had more than 32.2 million users. The number is expected to grow to 34.1 million by 2021. Even though the popularity of the app leaves no doubt, the advertising possibilities on KakaoTalk are limited. The main way to advertise on the app is by placing banner ads. According to the fact that KakaoTalk is huge in South Korea, it might become one of the main traffic sources for marketers.
Finally, e-commerce in South Korea is the core of the consumer market and one of the main ways to earn big. Adoption of new mobile technologies made it possible for Korean customers to monitor the latest trends, interact with brands regularly, and make purchases at any moment of the day. Online shopping is fairly popular and, therefore, the e-commerce market in Korea is overcrowded. There are several well-known e-commerce market players in South Korea, like Gmarket, Coupang, 11st, and TMON. Today, nearly all of the e-commerce companies have partner programs. For instance, Coupang launched a global affiliate program in 2018 called Coupang Partners. Basically, any user could become a partner and earn commission by promoting products available on the Coupang website.
Besides e-commerce, the South Korean market provides multiple opportunities for affiliate marketers to earn. As mentioned earlier, there is a range of top-selling products and services in Korea. Therefore, affiliate marketers can pursue multiple opportunities in e-learning and health & beauty verticals.
Even though the country is actively engaged in the global economy and globalization, Koreans stay attached to their culture and traditions.
Therefore, choosing promotional strategies without the Korean language is a path to failure not only because of the language barrier but because of the disassociation. In other words, without the Korean language, your company and your ads will be estranged from the target audience. While it presents certain challenges, the growing market of South Korea attracts significant interest and provides numerous opportunities for internet marketers to grow their business.
