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Martin Roll: outlined the key factors in achieving success in Korea’s tricky travel retail market |
FRANCE/KOREA. The travel retail market in South Korea is one of huge opportunity but also one that presents major challenges for brand owners. That was the view of Venture Republic CEO Martin Roll, speaking at last week’s Asia Pacific Workshop at TFWA World Exhibition in Cannes.
Roll is an expert on brand strategies, particularly related to the Asian market. In his presentation, entitled “˜The Korean Miracle’, he outlined the potential of the US$3.1 billion travel retail market in the country.
Underlining the pitfalls for brands owners seeking to gain entry, he said: “If a global luxury brand can achieve success in Korea, it can flourish anywhere.”
He noted the challenging nature of the duty free market structure, dominated by seven local companies, led by Lotte and The Shilla groups, which claim around 75% of the business. He noted the key role of agents – “breaking in takes time and earning people’s trust” – and underlined how “aware, informed and demanding” the consumer is. Plus he stressed the vital criteria of establishing one’s credentials for “quality and service” as well as sensitivity to local shopping norms and traditions.
Premium or luxury brands succeed due to the particular Korean mindset, he added. This places an emphasis on prestige, with shoppers extremely discerning about the differences between true and fake brands.
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“Korean consumers are curious and enthusiastic about trying new brands,” noted Roll, “while the speed and scale of trend changes are large and fast. It is unusual to see women wearing styles that were popular even a couple of years ago. This fast-changing product cycle and enthusiastic consumption make Korea a test market for high-technology products, fashion and luxury goods.”
Roll also noted the rise of the web in driving sales of luxury goods, and the growth of luxury in Korea even during the recent recession.
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He outlined the projected growth in international travel in and out of Korea over the next two years, with departures expected to grow at more than +5% a year in 2010 and 2011.
Among the key messages he concluded with were these: Be sensitive to the channel, maintain your premium brand visibility, offer good price/value, and ensure that merchandising point of sale marketing is of the best quality. Time, patience and money are vital, and don’t try to change the rules.
He noted: “Arrogance and complacency are lethal enemies of global brands in Korea.”
Roll drew extensively on data provided by Generation, The Travel Retail Business, Pacific Asia Travel Association, GLI Consulting and Synovate Korea in his presentation.
For more information on Martin Roll click on the following link: www.martinroll.com
