Go to Market strategy via market research

This material can be used under the Creative Commons Korea Attribution-NonCommercial-
ShareAlike 2.0 Korea (CC BY-NC-SA 2.0 KR) license.
Go to Market Strategy
via Market Research.
February 2021
SungHyuk Park

This material can be used under the Creative Commons Korea Attribution-NonCommercial-ShareAlike 2.0 Korea (CC BY-NC-SA 2.0 KR) license.
How will you conduct market research overseas?
1
• For example, if you are conducting market
research to sell electronic products, what are
the first requirements to consider if you divide
developed and developing countries?
• One of the things that can be easily
overlooked in market research is the
infrastructure requirement. This is because
things that never happen in developed
countries can happen in developing countries.
• Therefore, in order to find out which product
or service is suitable for entering into which
country, it is necessary to look at the
infrastructure factors of the country, and a
response reflecting the characteristics of the
country is essential.
Source: https://encrypted-
tbn0.gstatic.com/images?q=tbn:ANd9GcSUpQjI1_FP6K_5IgO063gC
Gx2-OsBs2BoYmjCj9id6NqrKlM9RZg

Vietnam Electric Motorcycle - Outlook
2
• In large cities such as Hanoi and Ho Chi Minh,
serious problems such as air pollution and noise
are being raised, and the Vietnamese government
recommends the use of electric bicycles to
prevent air pollution.
- Hanoi and Ho Chi Minh City have plans to ban
motorcycles from entering the city by 2030,
and the Vietnamese government also aims to
reduce the number of motorcycles from the
current level of 46 million to less than 36
million.
- Korean electric vehicle manufacturer MBI is
planning to launch a electric motorcycle
through an exclusive supply contract with
Vietnamese electric motorcycle distributor DK
Bike. They plan to invest up to $1 billion by the
end of 2020 to install 15,000 battery charging
stations nationwide..
Source:
http://www.tradetimes.co.kr/news/photo/201904/518_569_1538.jpg

Vietnam Electric Motorcycle - Climate
3
• Vietnam has quite a lot of rainy climatic
characteristics during the rainy season, and
related products are being released in
consideration of these factors.
- One of the reasons why electric motorcycles
are so popular in Vietnam is that Vinfast, a
subsidiary of Vingroup, Vietnam's largest
private company, launched a new electric
motorcycle Klara on the Vietnamese market in
November 2018.
- At that time, Vinfast actively promoted its
'waterproof function'. In Vietnam, streets are
often flooded after heavy rains due to
inadequate road drainage systems, which is
also receiving positive responses from
consumers.

Power supply and demand in Vietnam
4
• Until now, the strategic supply and demand in
Vietnam has not had a major problem, but power
supply and demand problems are expected to
occur in the future.
- During 2015-2016, there was 20-30% of reserve
power, but it reaches its maximum value from
2019 to 2020, and power shortage is expected
in 2021-2015.
- It is planned to use petroleum primarily as a
power source between 2021 and 2025, but
there is a possibility that it will not meet the
required power demand, and the southern
region is expected to run out of power. The
most severe period of power shortage is in
2023, and it is predicted that it will be
gradually resolved from 2024..
Source:
http://www.insidevina.com/news/photo/201906/10483_10616_3914.jp
g

How to grasp the characteristics of each country?
5
• Even in the same country, cultural and economic
characteristics differ from region to region, so it
should not be viewed from an equal perspective,
and it is necessary to grasp and understand the
characteristics of each region.
- In particular, in the case of products used
indoors, it is necessary to consider them
according to the places of use such as offices
and houses, and only if the products are
developed in consideration of these
characteristics, there is little possibility of
future problems in supply to the market.
- These characteristics are immediately
recognizable to locals, but in many cases they
are not conspicuous to foreigners, so it is
always necessary to check with questions.
Source: https://mortgageorb.com/wp-
content/uploads/2018/10/Irvine-California-696x464.jpg

North American Regional Characteristics
6
• North America can be roughly divided into the
United States and Canada, and even in the same
English-speaking region, climate and culture may
be different, so it is necessary to consider these
factors.
- The structure of houses differs depending on
the characteristics of the eastern and western
regions, and the temperature decreases as you
go up to the north, so it is necessary to
consider these characteristics.
- Linguistically, you have to think about this
because Spanish is spoken as much as
English in the United States. In Canada,
English and French are the official languages
and must be covered.
Source: https://scholarship-positions.com/wp-
content/uploads/2019/06/USA-vs-Canadian-Universities-
1024x512.jpg

North American – Language
7
Source: https://www.clo-ocol.gc.ca/sites/default/files/ol-canada-map.png
Source: https://washington.cbslocal.com/wp-
content/uploads/sites/15909891/2014/05/most-commonly-spoken-languages-
e1400084799404.jpg?w=1074

North American – Climate
8
Source: https://i2.wp.com/www.arkansasherald.com/wp-
content/uploads/2015/07/tonado.jpg?fit=848%2C562
Source: https://info.kaltire.com/wp-content/uploads/2015/03/Jan-6-PlugIn.jpg

North American – House Structure
9
Source: https://www.thermatru.com/globalassets/customer-support/learning-
center/fire-rated.jpg
Source: http://www.limastoneworks.com/wp-content/uploads/2019/01/paver-
driveway-mega-old-town-1024x768.jpg

North American – Western and Eastern House Structures
10
Source: https://www.villagesofirvine.com/media/397819/2013-pl-4-exterior-
barcelona_irvineco_ericfiggephotos.jpg
Source: http://www.chkoreatv.com/news/uploads/kbn_1487637318.jpg

China Regional Characteristics
11
• China has a huge homeland like the United States,
but it is necessary to take these characteristics
into account as the income level differs from
region to region and lifestyle patterns may vary
accordingly.
- As industrial development is centered on the
eastern coast, these regions have developed
faster than other regions, and large cities on
the west coast have a relatively large area and
population, so the population of the city is
comparable to that of the metropolitan area in
South Korea.
- Income in metropolitan areas varies several
times compared to other areas, and consumer
trends tend to be different due to this income
gap.
Source: https://scholarship-positions.com/wp-
content/uploads/2019/06/USA-vs-Canadian-Universities-
1024x512.jpg

China Regional Characteristics – GDP & Income
12
• China has a very large income gap by
region, and mainly the eastern coastal
region has a very high characteristic.
- Due to regional income gaps, high-end
workers and wealthy people are
concentrated in the eastern coastal
region, and the population continues to
be concentrated in the region.
- In order to solve these problems, the
Chinese government promoted the
“China Western Development”, and with
this strategy, the western region
developed rapidly, while on the other
hand, it is evaluated that the deterioration
of the northeast region has accelerated.
Source:
https://img1.daumcdn.net/thumb/R800x0/?scode=mtistory2&fname=
https%3A%2F%2Ft1.daumcdn.net%2Fcfile%2Ftistory%2F25290B485
829D5D528

China Regional Characteristics – City
13
• Chinese cities can be roughly divided into
tier 1, tier 2, tier 3, and tier 4. First-tier cities
are cities with more than 10 million people,
such as Beijing, Shanghai, Guangzhou, and
Shenzhen.
- About 20 million people live in Beijing
and Shanghai, China's leading cities. The
size of Beijing is 27.8 times that of Seoul
and 10.5 times that of Shanghai.
- Recently, as the growth of first-tier cities
has stagnated, second-tier and third-tier
cities are growing rapidly. In the online
market, tier 2 and tier 3 cities occupy a
larger scale than tier 1 cities.
Source: https://lh3.googleusercontent.com/proxy/v47i8kNt4YYBL-
Cm88HUGU2AUYwcU4UKKmFMzY-
Uo4Nva7GvPB4xZGQPQA2v3ivmsP1n7bEFMlRtN2VKKHp9gjjVw-
LM_jYRgvrkmG5RI02E8sIX_S_mbIwDEAsxcDCC8nXgwaDdvRR1AQ
BXmc7Ls5m6FhHky-lJyMA-aky7Bs0eMhtdrmByYzJUyawBEL-
UgRFTY_iMLsXR9M2xlivGBiOoY5fiEc4O742oLioPjok6ZTYzeWr9ynF
sBe5rkHIMLgBC1YFPMvkwLQiT3vfqLi7gHI-
Xf0ru4tO5TFkXWgn2w6uN-3esN4IpJdcV

China Regional Characteristics – Temperature
14
• China has various climate zones, and each
region has different characteristics, so it is
necessary to take this into account when
entering the market.
- The year-round temperature change in
Beijing is relatively similar to that of
Seoul. In the case of Shanghai, the
latitude is lower than that of Seoul, so
spring arrives quickly for about a month.
- In southern China, some regions do not
have winter all year round, and in Hong
Kong and Shenzhen, summers have
relatively high humidity.
Source:
https://lh3.googleusercontent.com/proxy/1VaFjxl2ObGn6fM29mR-
i6PL9NmnnBsjLmwxvBU3G0FR0P3idj0xTlK9yGJS0LNdJFjeuiyqjCxI
jeM710N3RXpNBRkKjZqwyuKupM9RXc1a92Jxr-JEWy3yyxgUOT0

China Regional Characteristics – Fashion Market
15
• Chinese consumers are spending a lot of money
on their children, and this trend seems to be
gradually developing with children's growth.
- Hanse Dream's `moimoln`: The introduction of
a rare Nordic style in the Chinese children's
clothing market, which was mainly in primary
colors such as red and yellow, led the market's
reaction and is gradually increasing the
number of stores.
- Hyungji ‘Shanghai Elite’: Chinese school
uniforms were generally the ‘training clothes’
style, but as the income level of the middle
class rises, the number of British-style formal
uniforms worn in private schools is increasing.
As a result, it expanded its presence in China
as a premium British-style formal school
uniform.
Source: https://www.hyungji-elite.com/img/shanghai_elite.png
Source:
https://file.mk.co.kr/meet/neds/2016/11/image_readtop_2016_816981
_14799644962693581.jpg

Vietnam Regional Characteristics
16
• In general, there is a high likelihood of climatic
differences if the land is long from north to
south, and if it is wide from east to west, it is
necessary to consider the time difference.
- Each region in Vietnam has different
climate and consumption patterns, and only
if the market is developed in consideration
of these characteristics, there is less
possibility of problems in the market supply
in the future.
- In many cases, the northern and southern
regions operate differently for business
purposes, and it is necessary to consider
how they operate so that they can act like
separate businesses.

Vietnam Regional Characteristics – Alcohol
17
• Vietnam is a country with a long land to the
north and south, while the south and the north
have a different history. In addition, regional
agricultural and marine products are different,
and historically, there are differences by
region, such as the people who live there.
- Both regions are characterized by their
preference for local liquor, and for beer,
Hanoi mainly drinks Bia Ha Noi and Ho Chi
Minh City is Bia Saigon.
- In addition, the northern region has a strong
tendency to prefer traditional liquor, while
the southern region is influenced by
Western influences to enjoy wine.
Source: https://t1.daumcdn.net/cfile/tistory/9996254C5A85726712

Vietnam Regional Characteristics - Flowers on New Year's Day
18
• Like other Southeast Asian countries,
Vietnam celebrates the Lunar New Year
holiday, which varies depending on the
regional characteristics such as food or
play.
- Usually on New Year's Day, they are
colorfully decorated with flowers. In the
southern region, waterways are well
developed, so they are transported
through waterways and sold in the
market.
- Conversely, in the northern regions
where there are few waterways, they are
mainly transported by car, bicycle, or
motorcycle.
Source: https://t1.daumcdn.net/cfile/tistory/99C1D04C5A85726902

Vietnam Regional Characteristics – Web Home Pages
19
Source: http://www.opinionnews.co.kr/news/photo/201707/6381_4705_643.png

Understanding the distribution structure in each region
20
• Even in the same country, there are cases where
each region has a unique distribution structure,
and it is essential to consider this because the
supply structure of the quantity varies depending
on the country due to differences in payment
methods or product display methods.
- In Osaka, Japan, since the traditional
distribution structure is relatively strong,
membership distribution channels exist, and
in traditional markets such as Southeast Asia,
cash payments are common, so it is necessary
to secure some liquidity for payment of funds.
- In the case of Shanghai, China, the market
changes very quickly, so it is important to be
aware of market trends.
Source: https://s3-us-west-2.amazonaws.com/courses-images-
archive-read-only/wp-
content/uploads/sites/903/2016/02/23230705/Marketing-channel-
graphic.png

Case Study: Membership shopping mall, Osaka (Japan)
21
Source: 만에이(萬栄)
Source: 판비데라우치 종합도매상사

Case Study: Electronics Store, Middle East (Bahrain)
22

Case Study: Cosmetics/Household goods distribution store, Shanghai (China)
23

Case Study: Supermaket, Ho Chi Minh (Vietnam)
24

How to find a trusted local partner?
25
• A local partner is absolutely necessary unless
you are going overseas. Securing local
partners is essential to continuing business
locally.
- In general, it can be said that it is more
advantageous to secure a related network
in Korea than to find a partner locally. To do
this, it is necessary to establish
relationships before entering the market.
- In terms of technology, alliances are easier
than finding a business partner, but there is
a risk of technology leakage. Therefore, it is
necessary to consider promoting the
business after devising measures to protect
the company's technology in addition to the
legal/institutional aspects.
Source:
https://lh3.googleusercontent.com/proxy/grutVVfSf62t0LFh3ArgmT
QgkYlItTaQkO6FpD4pOZi5g4-
a75p6CV6U1P4fthR6fktTJCCIWf7_icTp7qk9OnjfVySHJDVFn4_PYYQ
f7aL0eJ0ErrHSG5pfHac0CekxUPfTUQMjkLjaFCfskfzVdpskfklTpiiuS
A

Market Research: Where are the opportunities in the marketplace?
26
• Market opportunities need to consider both
quantitative and qualitative aspects, and in
the case of quantitative aspects, it can be
said that in the case of quantitative aspects,
it is very important in what context the data
is analyzed rather than simply collecting
and analyzing it.
• On the one hand, the market changes
according to the life cycle of
products/services, and the viewpoints to be
looked at are different, so it can be said that
it is necessary to establish a concept of
how to look at the market under this
viewpoint.
Source:
http://mblogthumb3.phinf.naver.net/20160516_90/lool2389_1463406
539954dlBOE_JPEG/%C4%B8%C3%B3.JPG?type=w800

Thank you for listening.
The individual authors own the ownership of images used herein, and This
material can be used under the Creative Commons Korea Attribution-
NonCommercial-ShareAlike 2.0 Korea (CC BY-NC-SA 2.0 KR) license.
CC BY-NC-SA

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