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Welcome to Inquivix Insights! In this edition, we take a look at how technology is changing the South Korean business landscape and what you can do to make sure your company stays competitive. We also explore the potential implications of eCommerce and market trends. As always, we hope you find this information helpful and informative.
1. Simmons Marketing Captures MZ Generation Recording KRW 100 Million Monthly Sales
Simmons’ bed-less pop-up store is the epitome of “fandom marketing” as practiced by Simmons, a major bed manufacturer. The strategy is to strengthen the relationship between the customer and the brand, with the expectation of making a sale of a bed with an average replacement cycle of 7 years. The key is to ensure that even if they don’t buy a bed right now, their fondness for Simmons will lead to the purchase in the future.
2. Sold Out, Musinsa’s Subsidiary Entangled in the Controversy over the Sale of Fake Products
It has been verified that there were counterfeit products for sale on Musinga’s resale platform, Sold Out. It was reported that Naver Cream and Musinsa discovered the sneakers purchased by customers to be fake, and they were promised compensation by Musinsa. Musinsa had been in several disputes regarding counterfeit products, and this time it was once again under fire for the fake issue.
3. Fashion Platform Seeks to Re-Enter the Offline Market
Online fashion platforms are exploring new methods to break into the offline sector. This is to take advantage of the physical elements of shopping where customers can examine and feel in person when visiting offline businesses. At Shinsegae Department Store, the online fashion brand, W Concept first opened an offline location. In the meantime, Musinsa has set up a store in Hongdae, Seoul under the name Musinsa Standard.
4. Coupang Supports ‘Market Place’ Sellers
Coupang announced that it will promote free product exposure deals to Marketplace merchants and assist with consumer contact and sales growth. Since the fourth quarter, it has been doing a promotion trial for food vendors who have joined Coupang Marketplace. Select sellers have the option of exposing their goods to one of several main accounts.
5. ‘Korean Robin Hood’ Vanilla MTS Cleared Zoom Internet Surges Losses
The settlement was made as a one-time loss by Zoom Internet, which was developing a mobile stock trading platform (MTS) “Vanilla” with the introduction of Korean Robin Hood. Despite investing and developing with KB Securities, it was unable to achieve success and recorded a net loss of KRW 3.153 billion last year.
6. Golf Marketing Boom with New Golf Clubs and Competitions
This year, golf is again being marketed by companies, with Angang Construction and Daebo Construction establishing new golf clubs ahead of the 2022 season. The financial sector’s interest in golf marketing has increased significantly this year as well. Woori Financial Group is launching the Korea Professional Golfers’ Association (KPGA) Korean Tour Competition in 2022, with all five major financial institutions in Korea sponsoring golfers and staging competitions.
Fandom marketing is becoming more popular with pop-up stores and events. However, it’s important to be aware of the counterfeit products that are being sold online. Online fashion platforms are reentering the offline market with new brick-and-mortar stores. Coupang is supporting “Market Place” vendors with special promotions. Golf marketing is booming with new clubs and competitions. These are the updates we have from the South Korean market for now. Stay with us for the latest updates!