Business Development Strategies in South Korea: Five keys to success
Why does a person choose this particular product and on this website? Understanding the user's motives and knowing the factors that influence the purchase decision allows you to optimize marketing strategies.
Regardless of whether we are talking about mass-produced goods or complex, expensive solutions, the success of promotion depends on the correct choice of sales channel. These can be SEO and social networks, cold calls or affiliate programs - the choice is determined by the product features, its complexity, cost and target audience. There are 5 main strategies for business growth, which will be discussed by the managers of Halla Systems Co. Ltd.
1. Inbound Marketing (SEO, SMM, Paid Ads)
For popular standard products and goods that customers search for themselves, they use a standard promotion set: SEO, activity on social networks and paid advertising in local search engines. For example, the beauty and fashion niche is one of the most profitable and stable niches in Korea. Since it is highly competitive, you need to look for narrow sub-niches.
Most Koreans use Naver as their main search engine. When promoting, it is important to take into account the features of Naver: organic results start from the 11th position, before them are commercial blocks. Therefore, standard SEO methods may be less effective. Halla Systems company helps to create content in Korean, adapting it to local cultural characteristics.
Strategy:
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SEO, website optimization for Naver using key queries.
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SMM, active blogging on Naver, promotion of KakaoTalk, Naver Blog, Naver Cafe.
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Targeted advertising, Naver Ads, Google Ads, Daum advertising campaigns, targeting by gender, age or location, choosing the preferred language, type of user devices, operating systems, telecom operators.
2. Outbound Marketing (Cold Emails and Calls)
When promoting familiar, expensive, and complex products or services with a long transaction cycle on the Korean market, you need to take into account local cultural characteristics. In South Korea, direct contact with potential customers requires a special approach. Sending out promotional offers via email without the recipient's prior consent is unacceptable. It is easier to establish trade through mutual acquaintances.
Strategy:
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Sending out personalized emails to managers of large enterprises with a detailed description of the advantages and benefits of the product and cooperation.
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Telephone negotiations and organizing a series of consultations, during which company representatives can demonstrate the functionality and offer pilot testing.
3. Virality and Organic Growth
The economy class and low price category niche. Promoting an inexpensive product is impossible without “supporting” content that users will want to distribute themselves. Viral videos, memes, or challenges adapted to Korean culture and trends can significantly expand the audience reach. South Korean consumers actively use social networks and messengers such as KakaoTalk, Instagram and YouTube. To achieve a viral effect, it is recommended to cooperate with local opinion leaders (influencers) who have significant influence on the audience. However, in Korea, it is not customary to contact bloggers directly; cooperation is usually carried out through agencies, which requires taking into account additional costs.
These products can be promoted to the market with minimal marketing and advertising costs: basic clothing, household chemicals for mass consumption, cheap accessories, daily products, inexpensive goods of little-known brands and trademarks, the market of replicas and counterfeits.
Strategy:
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Viral content that users can share and invite friends, for example, in-game bonuses for each new user.
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Integration with social networks KakaoStory and Naver Blog.
4. Events and integrations
A complex product that needs to be educated to the market. Webinars, master classes or participation in local exhibitions and fairs allow you to demonstrate the product and get feedback from consumers. Halla Systems Korea helps in preparing events in South Korea, assesses the risks of future transactions.
Strategy:
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Seminars and webinars with experts.
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Offline conferences where participants get acquainted with the capabilities of the platform and receive practical advice on the implementation of modern teaching methods.
5. Partners
When the product is a module or service that is embedded into another solution (for example, a payment module for banking applications), the sales channel is built through partner programs and integration into the ecosystem of large players.
The strategy of embedding and partnership with Korean manufacturers or distributors allows you to offer unique products that meet the preferences of the local market. In addition, cooperation with influential personalities on social networks helps to increase trust and attract a wide audience. For example, Halla Systems proposed several strategies to promote a fintech enterprise.
Strategy:
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Partnership with banks and integration of the module into the mobile applications of large Korean banks, such as Kookmin Bank or Shinhan Bank.
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Cross-promotion and joint marketing campaigns with local fintech companies and online retailers.
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Choosing the right growth strategy for entering the South Korean market requires a deep understanding of local characteristics and audience preferences. By taking a holistic approach and leveraging five key growth drivers, companies can compete successfully in one of Asia's most dynamic markets.