E-Commerce in South Korea: a Canadian Perspective
E-COMMERCE IN SOUTH KOREA: A CANADIAN PERSPECTIVE REPORT PREPARED BY: Theresa Eriksson, Luleå University of Technology, Sweden Kristin Matheson, Luleå University of Technology, Sweden Dr. Leyland Pitt, Professor of Marketing, Beedie School of Business, Simon Fraser University Dr. Kirk Plangger, King’s College, London, UK Dr. Karen Robson, University of Windsor 1 2 TABLE OF CONTENTS EXECUTIVE SUMMARY 4 INTRODUCTION 5 SOUTH KOREA: THE COUNTRY, THE ECONOMY 7 METHODOLOGY 8 THE SOUTH-KOREAN E-COMMERCE CONTEXT 9 Customer Context 9 The E-commerce Shopping process 11 Products and Brands 15 Online Behaviour 16 Shopping Events and Timing 20 Main Stakeholders 24 Technology and Infrastructure Landscape 27 For Canadian Firms Contemplating E-commerce in South Korea: 32 Marketing Considerations FUTURE OUTLOOK 40 CONCLUSION 41 CASE STUDIES 42 Case Study I: Yogiyo 42 Case Study II: Pinkfong and Baby Shark 46 APPENDIX 53 Digital Technology in South Korea and Canada — A Comparison of Digital Device Ownership, Digital Media Consumption, and Digital Behaviour. ABOUT THE AUTHORS 68 3 EXECUTIVE SUMMARY This report focuses on e-commerce opportunities for Canadian firms in South Korea, one of the world’s most connected markets. Korea is not for the faint-hearted: consumers are very sophisticated and markets are very competitive. Nevertheless, for Canadian firms with excellent offerings and a willingness to provide excellent service, coupled with patience and an ability to build good relationships at all levels, Korea offers significant opportunities. The report proceeds as follows: First, it provides a broad overview of the nation of South Korea with particular focus on e-commerce and online connectivity in that country.
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