White is the New Tan

This semester I have been working as an intern market researcher for ExporTech, an export assistance program. I have had the opportunity to work with five different companies from different industry and help them find the best places for their product. Over the last month or so, I have researched trends, consumers, and consumers all around the world in order to best advise target markets for these exports.

The ExporTech Process

Recently I was meeting with one of my companies who makes beauty products. I suggested they look at South Korea, as Koreans love cosmetics and we have a free trade agreement with them. Immediately, the coach for this company shot down my idea because she said that South Koreans do not have any disposable income. Having lived in Korea for four years, I knew differently and did my best to explain how Korea is very metropolitan and thriving.

Myeongdong (One of my favorite places to shop)

I also went on to explain the obsession Koreans have with cosmetic products. I used an example of their love of having white skin and how I had to be careful not to walk too close to beauty shops or else they might rub skin-whitening lotion on me and I would lose part of my tan. At this my clients eyes lit up.

A few Korean cosmetics stores

"Our sunscreen whitens skin!", she exclaimed. "We have trouble selling our sunscreen in the US because no one here wants white skin", she further explained.

This whole situation was a great example of consumer behavior. Even though in the USA, we value tan skin, in other parts of the world, white skin is more desirable. By understanding these differences in consumer behavior and the desires of consumers around the world, we can sell products to other parts of the world that might not sell as well in the USA.

On the left is a Westerner trying to get tan while the right shows an Asian protecting themselves from the sun

This all goes to say that there is an increasing need to better understand consumer behavior around the world. If I had not previously lived in South Korea, I would not have been able to dispel the export coach's ignorant assumption that South Korean do not have any money and a huge opportunity would have been missed.

A graph of South Koreas growing disposable income

I also noticed that I was able to give much better insights to countries I had lived or visited versus the countries I had simply researched. This illustrates the importance of first-hand experience and the amount of learning that can be gained when we go overseas. 

What Do You Think: Can you think of a product that would sell great in one country but not another?