South Korean Retail High-End Blind In China

The continued invasion of Korean wave has become a phenomenon, but retail sales in Korea have been limited.

South Korea's trade and investment promotion commune and the South Korean import and export bank published data show that 2294 Korean enterprises in Huaxin have been set up in 2006 to 368 in the first half of this year, with the exception of Korean food and cosmetics.

Analysis from the North Business Research Institute shows that blind high-end influences the future of Korean brands in China.

Dining alone beauty

Reporter survey found that the hot Korean brand is concentrated in the catering industry, such as golden straw hat, hooligan village and so on gathered in the western garden of Wangjing, the per capita consumption is around 100 yuan, and the reputation of consumers is quite high.

There are many stores in Beijing, such as fireplace, MR.PIZZA and so on.

But in addition to the popular Korean restaurants, Korean retail businesses are rather lonely.

Lotte Department stores, Lotte Mart, Yi mart and other famous Korean large retailers in China are not as well developed as expected.

After the acquisition of Wan Kelong into China, the Korean supermarket Lotte Mart proposed "300 stores" by 2018, but by the end of last year, the brand had only opened 110 stores.

In 2012, Lotte Matt proposed to invest 80% of overseas investment in China, and put forward the principle of "thoroughly localization and the use of locals". But Lotte Matt's influence is still hard to compare with other foreign counterparts such as Carrefour and WAL-MART.

South Korea's giant new world's Yi bought supermarket entered China in 1997.

Last year, the Chinese business lost 53 billion won (about 295 million 280 thousand yuan). In the first quarter of this year, the company lost another 22 billion 500 million won.

This reality makes it easy for Yi to buy a store.

Similarly, there are Lotte Department Stores jointly owned by Korean retail giant Lotte Group and China Yintai group.

Lotte Department Store on Wangfujing street was once a genuine Korean shopping mall.

However, the net loss in the opening year amounted to 102 million yuan, then Lotte intime department store continued to play down the "Han flavor". Even if the introduction of GUCCI, CARTIER and other international cards, it still failed to save the fate.

At present, Lotte has basically quit, Lotte intime stores are pformed into in88.

Blind high-end

Before pformation,

Intime department stores have introduced many of the top sales in the Korean market.

Brand design, materials and workmanship represent the highest standard of Korean clothing, and the price is at the same level as that of the European and American luxury brands. However, because of the mismatch between popularity and price, consumers are in South Korea.

Most of them did not buy it, which led to the loss of capital in Lotte's department store.

Beijing Business Daily reporter survey found that ZOOC and EGOIST are representative clothing brands in South Korea, but the popularity in China is not high, but these clothes start at a price of 1000 yuan.

In the interview, many consumers told reporters that the same price can buy big brands in Europe and the United States, will not consider the Korean brand.

Compared with the embarrassment of high-end brands, ELAND, TEENIE and WEENIE, which are enduring in the Chinese market, are Korean parity brands.

In major shopping malls in Beijing, these brands are often heavily discounted.

Lower your figure.

Korean cosmetics and Korean cuisine are the "Korean wave" that affects Chinese consumers. The common characteristics of these mature Korean businesses are high cost performance.

In the view of the North Business Research Institute, the high performance price ratio is a feasible mode for Korean brands to develop in China.

An industry insider also believes that South Korea's top brands want to have a foothold and adopt a low price strategy on the basis of quality.

The modern automobile brand from Korea is the representative case of winning the Chinese market by adopting the price strategy.

Although the pricing of modern B cars is basically the same as that of Japanese and German products, most of them will have sales promotions.

The price of some of these products wanders between China and Japan and Germany, and is well recognized by Chinese consumers.

There are also people in the industry who say that the Korean high-end brands enter the Chinese market only by emphasizing the brand concept, ignoring the cultivation of the market and causing the brand development to be acclimatized.