Article 44 Three Dimensional The markets of Japan, Korea, and China are far from homogeneous. Mnsurr KOTABE AND cnysrnr Jmxc sia is one of the world's most dynamic regions, and offers multiple opportunities for businesses and investors.
In terms of its nominal gross domestic product (GDP) in 2005, Japan has the largest economy ($4. SO trillion), followed by China ($1 . S+ trillion) and Korea ($. IZ trillion).
China's real purchasing power exceeds $7 trillion, Japan's is estimated at $4 trillion, and Korea's is estimated at $1 trillion. These giants'combined purchasing power is comparable to the $12 trillion U.S. economy. One of the challenges faced by American and other Western Executive Briefing Globalizing markets might not mean that markets have become similar. Although multinational companies tend to believe that all Asian markets are the same, a comparative analysis proves that consumers in Japan, Korea, and China differ in their brand orientations, attitudes toward domestic and foreign products, quality and price perceptions, and product feature preferences.
To ensure success, companies must set aside narrow and risky assumptions, and tailor country-specific strategies to target these consumers. ltinational companies is a tendency to lump together these markets and assume that Asian consumers have similar tastes and preferences, moderated by different income levels. This is not only a very shortsighted view, but also a risky assumption when entering these markets. Asian countries have distinct cultural, social, and economic characteristics that affect consumer behavior, with consumers in Japan, Korea, and China differing in brand orientations, attitudes toward domestic and foreign products, quality and price perceptions, and technology feature preferences.A comparative analysis of consumer behaviors can help companies identify effective marketing strategies, and enable them to successfully tackle these Asian markets (see Table 1).
importance to the reputation of the merchandise than to their personal social classes. Noticeably, the country's consumer markets nave expanded to China and Korea. In Shanghai or Seoul, you can see the influence of Japan's fashion trends and products. There's even a Chinese word for this phenomenon: ha-ri, which means the adoration of Japanese style. Korea.
Consumers have very sophisticated tastes, show mmense passion for new experiences, and favor premium and expensive imported products. In 2004, the Korean Retail Index showed continuous growth of premium brands in certain product categories, such as whiskey, shampoo, and cosmetics. Consumers also demonstrate great interest in generational fads (expressions of their generations and cultures, not Just of their economics or regions), thereby selecting products that follow their generations' Judgments and preferences. Brand Orientation Japan.
Of all the developed countries, this is the most brandconscious and status- conscious.
