Asian markets, including China, are growing fast and still have potential for growth. If you plan to expand your business to include Asia, I recommend Seoul, the capital of the Republic of Korea (South Korea), as a test for expansion in the Asian markets. Here are 5 reasons why you should choose Seoul:
1. 23 million population in your test market
The Korean population is a little more than 50 million, with 23 million living in Seoul and its neighboring province. We know that many of the cities in China have at least 50 million in population, but consider the point of 'degree of population density.' In New York City, 1,127 people live per square mile; Shanghai records 1,406 per square mile. Seoul's population density hits 8,940 per square mile! The key point of this number is that the populations of these cities are physically close and that they are in frequent communication.
As a result, in a place like Seoul word spreads quickly. We can say that physical distance is not a big deal because of the Internet, be we cannot ignore the effect when people can hear what others are talking about. People can also see what others use, eat, wear, read, etc. Seoul is the place where you can maximize the word-of-mouth effect. That is why I emphasize that Seoul is important strategically when you target the Asian market. You can find millions of users in a short time if your product is attractive.
2. Sensitive and picky consumers
Korean consumers are sensitive to trends and fashion. You may know that many global companies choose Korea as their test market for new products, especially products for women. They say that there will be no complaint in other countries if you satisfy Korean female consumers. This is a difficult market in which to succeed, but a market with demanding consumers offers a chance to upgrade your product. Koreans are the best test group for your product!
Do not avoid this demanding consumer market - approach it and try to satisfy consumers. One big attraction of the Korean market is that they have savvy and demanding consumers who will analyze your product from A to Z and give critical feedback. Negative comments may hurt your ego, but it also is a good chance to upgrade your product. Another benefit is that if they love your product, you can be a rock star in a day.
3. The Best IT Infrastructure in the World
If you run an IT provider, you should know that Korea has built the world's best IT infrastructure. Korea ranks No. 2 in World ICT Development Index (ITU), No. 2 in smartphone penetration rate (Consumer Barometer), and No. 1 in E-government Readiness Index. You can see many people watching movies or streaming tv in the subways in Korea. Internet speed in Korea is 25.3 Mbps,5.6 times faster than the average Internet speed of the world. Fintech is not a nw technology for Koreans, it us just a new word. Korea is literally a "smart-country," where everything is connected, so there is little need to carry cash. That makes it a good market to test your new technology. To test new technology, you need advanced infrastructure and systems. Korea already has them and they are on the top now.
4. Highly educated talent pool
Several times, President Obama mentioned Korea's superior education. Korean parents are passionate about education. Korean schools have the longest days. Korean people live in a competition-friendly environment from the day they are born. Koreans learn fast and know how to adapt quickly in a new environment.
In Seoul, there are 32 universities and they take 20% of the total students in Korea. The students are accustomed to and like technology and they are not afraid of competition. They are the best talent pool you can find in Asia.
5. Culture of 'obsession with make quick results'
In Korea, competition is fierce, so the speed of getting results becomes critical. Korea's unique culture of "obsession with getting quick results" can play an important role. You can get results within a short time in Korea, rather than months in other places.
Satisfying customers in other countries is difficult because of cultural barriers. Therefore choosing the best test market is key. There are opportunities for you in Korea. Hire or build a partnership with someone in Korea first. Test your business and upgrade it. Then, you will be one step closer to success in Asian markets.
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