Choice vs Package

• DISCLAIMER: all these statements are GENERALIZATIONS.  Of course, there are always exceptions, to EVERYTHING….but the premise here is “general speaking”. There many many (even more so lately) counter examples and exceptions. That’s not the point. There are still deep underlying tendencies on BOTH sides of border, so to speak, and recognizing these generalities is the first step to understanding and appreciated when they do NOT apply to any situation.

Here’s the gist of it:

PREMISE

In the USA (and for lack of a better phrase, many “English language-based/Western” cultures), life and how we go about it is all about given a “choice”, and the individual freedoms and right to have that choice in the first place.  In fact, people usually get quite annoyed, even offended when told what to do, and or not given a choice. People just don’t like being told what to do or think (at least not overtly). They like to be given options and decide what is best for them. This notion is prevalent in movies, purchases, industries and even in one’s general attitude.

Two basic things drive this:

• Western ideal of “freedom”. Part of the foundation of thought that is pounded into all aspects of America ideology is “freedom of choice”. The Constitution, Bill of Rights and Dec of Ind are the epitome of that ideal in writing and in teaching. Its so engrained into the psychology that it usually takes leaving the country for while or living abroad to really have it hit ya.
• Necessity. The US is relatively LARGE country: geographically and population-wise… and with tons of different peoples and cultures mixed together. Thus, its a practical necessity for SUPPLIERS to have to offer choice to the receiver, simply because there are few “one-size fits all” product or services for “Americans”–especially in the IT world. This, again, is pervasive down to the psychology and day-to-day life (eg: its more polite to offer someone a choice of where to go eat, then to proclaim this is where you are going). Business is the most salient and obvious example of this. Businesses competition drives more consumers offerings. If you don’t match the consumers wants and desires…you’re done. Either your product fits the profile, or you have a product that is made-to-order. Let’s take pizza, for example.  The standard procedure is: order a “cheese pizza” (as the base) and then add whatever toppings you want. One doesn’t really think twice about that system. “I’ll have a large pie with mushrooms and sausage please” is as normal as apple pie.

THE “OTHER” PREMISE

And here’s in lies the fundamental difference with Korea/Korean culture:

This is NOT the case for Korea and Koreans. Koreans tend towards “pre-packaged” items, and may even find it annoying (get very impatient) with the continual need to have to actually choose what you want on a pizza, or what have you.

Why?

Same reasons…in reverse: Korea is a relatively SMALL country, landmass speaking, and is HOMOGENOUS.

Less than 10% of the residents in Korea are foreigners (non-Korean) and in a broad anthropological sense, Koreans’ have homogenous tastes. Thus, a well-matched, pre-packaged pizza, or whatever product, serves as a convenience and significant value-add, as opposed to a “self-serve, “you get to choose” benefit. For example, even for US franchises like PizzaHut in Korea, if you order a pepperoni pizza… you might well be getting onions, peppers and meat on it anyway, as pepperoni pizza is a “set packaged” pizza in itself (this I believe has only begun to change recently– ie: you actually only get pepperonis). Some other places will still look at you funny or get confused when you get all specific about what you want and DON’T want on your pizza. Variety comes more in the the form of kinds of pizza (cheese crust, or thin pizza) than in the topping selection (way to much to have to bother with). Its “Deluxe regular”, or “Deluxe thin” (for example)… and whatever combo of toppings that comes on the “Deluxe”.

Of course, this is just a example, but it IS illustrative.

Although there we are seeing significant signs and trends to opening up and more individual, consumer-oriented services and targeted products: in broad, sociological terms, Koreans in Korea’s actions and mentality tend to be fairly uniform (critical mass). Thus, in terms of marketing, advertising and/or positioning: it’s often good to think of Korea as a VERY LARGE LOCAL market…or niche market (of 50 millionish) if you prefer — at least as a starting point. Look at “chaebols”, or Korean conglomerates: e.g.: Samsung, Hyundai, LG, et al. The rise of chaebols in Korea is long story in itself, but suffice it to say “chaebols” exist. Korean chaebols dominated and still dominate the market and effectively drive the economy in Korea…and up until fairly recently, they determined “choice” of product. They produced it, Koreans bought it. Total supply-side economics. Granted they inherently produced product that best fit Korean tastes and sensibilities, but the fact is… it’s not like Koreans really had a line of other products to compare with.

Let me say clearly, most of the above is changing dramatically in very recently years due to:

1. The generation gap. Much of this just doesn’t apply to the Korean “digital native” youth–weened on broadband, Prada, Kpop, and even more recently cable TV (CSI is a very popular here).

2. Globalization and opening of the Korean market to foreign competition.

So in many very real and important ways, we are witnessing a very historic time for Korea and Koreans, in my opinion….where old socialistic ideology and new capitalistic ambitions and technologies and crashing head to head. IT industries are not surprisingly at the forefront of many of these changes.

It should be interesting to see which way it goes, but that is another story…

RESULTS

So what does this mean for me?

Simply put, if you are selling a product or service in Korea:

• • Cookie-cutter, turn-key products and services will have a tough time reaching critical mass unless they happen to be inline with Korean local tendencies in the first place–which is unlikely or else, the product and service will probably already exist.
  • Take a lesson from fast food chains in how they set up orders: BUNDLE BUNDLE BUNDLE! SETS SETS SETS!! Make a bundled or set pre-package for your product/s. Koreans will buy a “Couple set” 10x more, than two orders of popcorn and two cokes… the same holds true for e-commerce products. You’ll find your orders for just about any product go up-and-up with the right pre-packaged combo relative to a build-your-own set-up.