 |
S.K. a test market for a variety of goods prior to global launch
The South Korean market is being recognized more frequently as an ideal test market for products made by multinational companies. A report released by the Korean Chamber of Commerce and Industry on November 15 showed that the Korean market has emerged as a popular trial market for information technology (IT) goods, cars, food items, and household goods, before companies make a global launch of their product. The products first launched in Korea include: Intel's Sonoma notebook computer, Olympus' and Sony's 8-megapixel digital cameras, Toyota Motor Co.'s Lexus ES350, and Starbucks' Green Tea Latte. By launching in Korea first, Intel was able to receive detailed customer reviews about the Sonoma notebook computers six months ahead of its international launch. Sony repaired a technical glitch in its DSC-F828 digital camera after complaints from Korean consumers. Starbucks developed the Green Tea Latte because of Korean consumers' current preference for healthy foods and beverages, called the "well-being" trend in Korean. Starbucks plans to sell the drink in the U.S.The South Korea test-market phenomenon is seen as a result of the combination of Koreans' pride in being both intellectual and adventurous in trying new things, their seeking of aesthetically pleasing items, and their sophisticated level of (IT) literacy. Koreans' sense of rivalry with one another in terms of aesthetics is also thought to contribute to making the country a hot test market. All of this translates to a near-immediate market reaction, which multinational companies use to determine their next move before launching their products worldwide. In the IT field, a number of Internet community sites help speed this rapid-fire market reaction and quest for innovative new products, such as Dcinside, which specializes in digital cameras, and Cetizen, a Web site for mobile phone users. Some foreign companies even set up research laboratories here to reflect Korean consumers' response to their products. In 2003, IBM opened a computing research center. In 2004, Intel set up a research center for home networking. Google said last month it will set up a research and development center in Korea. However, obstacles remain for Korea to be the 'perfect' test market, such as a prevalence of counterfeit goods and a gap between ordinary consumers and the so-called "early adopters," or those quick to snatch up any new product. In a case related to these quick-grab shoppers, the Korean Chamber of Commerce accused Korean electronics makers of wasting resources by launching DLP (Digital Light Processing) projection televisions, despite the already entrenched Korean popularity of PDP (Plasma Display Panel) and LCD (Liquid Crystal Display) televisions.
