DEVELOPING AN INTERNATIONAL MARKETING PLAN FOR BAMBOO FURNITURE PRODUCTS TO ENTER THE KOREAN MARKET

C OMPANY INTRODUCTION

Asian Craft is a leading enterprise dedicated to the manufacturing, trading, and exporting of premium handicrafts made from Cao Lanh Stone, Buffalo Horn, Fine Art Snails, and various sculpture products The company specializes in exporting its exquisite creations to China and other ASEAN countries.

Picture 1.1: Logo of Asian Craft

V ISION & M ISSION

Asian Craft aims to become the leading handicraft exporter in Vietnam and the region, driven by its innovative and sustainable manufacturing, exporting, and development strategy The company seeks to elevate its Vietnamese brand on the international stage, showcasing the country’s intellectual prowess and cultural pride.

We aim to deliver premium products and services that meet international standards, showcasing originality and high creativity while reflecting local identities Each offering not only boasts exceptional quality but also conveys a cultural message, ensuring we effectively address our customers' genuine needs.

- For employees: To develop a professional, dynamic, creative and humane working environment, enabling high income and equal development opportunities for all employees

- For society: To harmonize the company’s and society’s benefits; to make active contributions to community-oriented activities, and to demonstrate citizens’ sense of responsibilities and national pride

Asian Craft's continously improves all services to respond to the credibility and expectation of customer as well as to build prestige in the market.

C OMPANY C ULTURE

Their handicraft products are not only ordinary daily life items but also artistic works representing the culture of the nation Aslan Craft has reached the pinnacle of quality,

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This plan should emphasize the diverse range of styles and designs available, ensuring that each product meets the sophisticated tastes of Korean consumers Building credibility and trust with customers will be crucial in establishing a strong market presence and fostering long-term relationships.

C OMPANY R ESOURCE

- Cash and cash equivalents: 16 billion VND

- Short-term receivables: VND 113 billion

- Other short-term assets: VND 20 billion

- Investment real estate: 51 billion VND

- Long-term financial investment: 35 billion VND

Human resources consist of a skilled team of artisans from traditional craft villages in Vietnam, working alongside professional design experts to prioritize people in their construction and development activities.

At our company, we believe that a customer's smile is our greatest reward We are dedicated to continuously enhancing our techniques, refining our production processes, and elevating our service standards Our ultimate goal is to deliver the highest quality products, maximizing work efficiency and providing exceptional value to our clients.

Their handicraft products are not only ordinary daily life items but also works of art representing the culture of the nation

Asian Craft exemplifies unparalleled quality, offering a diverse range of sophisticated patterns and subtle designs to cater to every customer preference We prioritize building credibility and trust with our valued customers.

Production process of products from bamboo knitting

• Step 1: Choose bamboo and rattan materials

Choose the best bamboo of Quang Phu - Quang Dien - Thua Thien Hue rattan and bamboo craft village, which is not young, not old, grows straight and has high hardness

To achieve optimal results in their craft, artists must have a thorough understanding of their materials The ideal bamboo is characterized by its maturity, being neither too young nor too old, and should be straight and hard Similarly, when selecting rattan, it is essential to choose pieces that are approximately 5 meters long, straight, round, and free from pests, as both overly young and old materials are unsuitable for quality work.

Developing an international marketing plan for bamboo furniture products aimed at entering the Korean market involves a strategic approach This plan should focus on understanding consumer preferences, identifying key distribution channels, and leveraging the eco-friendly appeal of bamboo furniture Additionally, it is essential to analyze the competitive landscape in South Korea and tailor marketing messages to resonate with local culture and values By emphasizing sustainability and quality, the marketing strategy can effectively position bamboo furniture as a desirable choice for environmentally conscious consumers in Korea.

Bamboo materials undergo a process where they are cut, dried, and treated to combat termites Two prevalent methods for termite protection include immersion in an XM5 chemical bath, which is a user-friendly and safe preservative, or soaking in water using a traditional manual technique.

Rattan, known for its sharp thorns, requires careful preliminary processing The outer thorny layer is meticulously peeled away to expose the white rattan core Following this, the rattan is lightly dried, preparing it for the initial processing stage.

Bamboo materials undergo a meticulous process where they are shaved and polished with sandpaper before being placed in an oven This is followed by smoking with straw or bamboo leaves, which not only enhances the color but also aids in drying the material and preventing warping As a result of this treatment, the bamboo takes on a rich western brown or dark brown hue Once cooled, the bamboo is then bent straight, ensuring its durability and aesthetic appeal.

Rattan materials undergo a meticulous drying process to ensure both proper moisture removal and optimal color development If the drying conditions involve excessive or insufficient smoke, it can result in a reddish hue on the rattan.

The drying process of rattan fiber is delicate; rain can diminish its beauty, while excessive sun exposure can strip it of freshness Additionally, if the drying environment is too humid, the fiber appears dull, and if it is too dry, it loses its soft shine Consequently, craftsmen must invest significant effort to achieve the ideal drying conditions for rattan.

Weaving with rattan and bamboo requires careful splitting and spinning of the materials The dimensions of the yarn vary based on the intended product, with larger yarns suited for basic items and finer yarns used for intricate designs Attention to detail is crucial during the rattan splitting process, as the uneven nodes in rattan fibers demand skilled handling to ensure uniformity.

The quality and aesthetics of rattan-bamboo fibers are one of the leading factors determining the value of traditional bamboo and rattan products

• Step 5: Construction and manufacturing of products

After the knitting is complete, the product will be dipped in glue, painted in color, glossed over the surface, and trimmed to perfection

The materials, after being processed, will be knitted and shaped by the talented and skillful hands of artisans in the village to become beautiful and attractive products.

SWOT OF C OMPANY

- Having a long-standing and reputable brand in the industry

To successfully enter the Korean market, developing a comprehensive international marketing plan for bamboo furniture products is essential This plan should focus on understanding consumer preferences, identifying target demographics, and leveraging the eco-friendly appeal of bamboo furniture Additionally, effective marketing strategies, including online promotions and partnerships with local retailers, will enhance brand visibility Emphasizing the sustainability and unique design of bamboo products can attract environmentally conscious consumers in Korea By aligning marketing efforts with local trends and cultural values, businesses can establish a strong presence in the competitive Korean furniture market.

- Experienced in exporting because the company's existing products have been exported to China and ASEAN markets

The product design stage remains constrained, primarily relying on traditional methods and past experiences, which often fail to address the evolving demands of the global market.

- The market share of bamboo products is not high

- The cost has not been optimized, the price is still high

- Marketing channel is not working effectively

- The business field is being expanded, there are many opportunities for development and success in the future, especially the Korean market

- Strong growth in furniture market

- The government always encourages businesses to develop, especially products with national culture

- There are few competitors for this bamboo and rattan product

- Meet the rules of origin and origin procedures as well as labor and environmental commitments are quite complicated

- Exchange rate risk due to selling products abroad

- Shipping costs tend to increase

- Strong competition in Korean handicraft industry

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding local consumer preferences, identifying key distribution channels, and leveraging digital marketing strategies Emphasizing the eco-friendly nature of bamboo furniture can resonate well with environmentally conscious consumers in Korea Additionally, conducting market research to analyze competitors and pricing strategies will help position the products effectively Establishing partnerships with local retailers and utilizing social media platforms for brand awareness will further enhance market penetration.

COUNTRY SELECTIVE

R EASONS WHY CHOOSE S OUTH K OREA

Table 2.1: Value of exports and imports by continent, country block and some major markets in 5 months of 2022 and compared to 5 months of 2021

(Source: General Department of Customs)

According to the General Department of Customs, many Asian countries with significant trade relations with Vietnam, including China, ASEAN nations, and Korea, tend to import more from Vietnam than they export The only exception is Japan, which maintains a trade equilibrium In contrast, Western regions such as the US and EU export more to Vietnam than they import To address the trade deficit, it is evident that Korea presents an ideal market for new businesses, bolstered by key trade agreements with Vietnam Additionally, as reported by the Korea Immigration Service, there are over 200,000 Vietnamese nationals residing in Korea, highlighting the strong ties between the two nations.

To successfully penetrate the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding the unique preferences and cultural values of Korean consumers, highlighting the sustainability and eco-friendliness of bamboo furniture Effective strategies may include targeted online marketing campaigns, partnerships with local retailers, and participation in trade shows to increase brand visibility Additionally, leveraging social media platforms and influencer collaborations can enhance brand awareness and drive consumer interest in bamboo products By aligning marketing efforts with the growing trend towards sustainable living in Korea, businesses can position themselves favorably in this competitive market.

R ESEARCH ON WOODEN FURNITURE MARKET IN K OREA

The Furniture segment is projected to generate revenue of $9.66 billion in 2022, with an annual growth rate (CAGR 2022-2025) of 4.94%, leading to an anticipated market volume of $11.16 billion by 2025 The average revenue per user (ARPU) is expected to reach $617.90, particularly in the living room and kitchen areas.

Picture 2.1: Furniture Revenuew in Korea from 2017 to 2025

The Global Bamboo Furniture Market is analyzed through comprehensive market intelligence, incorporating both primary and secondary research to evaluate the competitive landscape and identify key players poised to lead the market during the forecast period of 2019 to 2025.

The global bamboo furniture market, valued at USD 10,376.60 million in 2018, is projected to reach USD 14,895.45 million by 2025, growing at a CAGR of 5.30% Bamboo's popularity stems from its air quality improvement properties and its resurgence in modern design, influencing flooring, wallpaper, and furniture, including contemporary bathroom accessories Its lightweight and durable nature make bamboo materials increasingly favored in both commercial and residential sectors Notably, bamboo stools currently dominate the market share, alongside other popular products like bamboo planks, laminates, and strips.

To successfully enter the Korean market, developing an international marketing plan for bamboo furniture products is essential With a growing preference for bamboo stools in commercial spaces like cafes, bars, and outdoor restaurants, there is a significant demand for innovative designs This trend has led to increased investment in product innovation and research and development, contributing to the overall growth of the global bamboo furniture market.

The Asia Pacific region has recently emerged as the leading market for bamboo furniture, with expectations of continued growth at an accelerated pace Notably, Korea presents a promising opportunity due to its cultural affinity for bamboo products and the presence of relatively few major competitors in the sector.

O VERVIEW OF THE DEVELOPMENT HISTORY OF S OUTH K OREA

"South Korea, often referred to as 'The Land of Kim Chi,' captivates international visitors with its rich culture and artistic heritage One of the lesser-known traditional art forms that has flourished over the years is pottery, showcasing the country's unique craftsmanship."

Korean history of the Goryeo - Goryeo period (918 - 1392)

In 918, Emperor Wang Gun established the Goryo dynasty, designating Song-ak (modern-day Gaesong) as its capital During this period, Buddhism remained the predominant religion in Korea, significantly boosting the demand for celadon (cheongja) glazed porcelain This surge in popularity led to the rapid evolution of cheongja glaze, characterized by more organic shapes and intricate decorations, including motifs of animals and birds.

History of Korea during the Joseon period (1392-1910)

Grandfather Lee Seong Gye, the founder of the Joseon dynasty, established a society rooted in Confucian thought, which fostered the emergence of many influential figures This era also saw the creation of various furniture pieces, including wardrobes, chests, shelves, tables of all sizes, bookcases, and cupboards, reflecting the cultural advancements of the time.

Developing an international marketing plan for bamboo furniture products to enter the Korean market requires a strategic approach Historically, Joseon society prioritized academia, leading to a neglect of trade and production, which has resulted in stagnation To successfully penetrate the Korean market, it is essential to highlight the eco-friendly and sustainable aspects of bamboo furniture, aligning with the growing consumer demand for environmentally conscious products Additionally, understanding local consumer preferences and trends will be crucial in crafting effective marketing strategies that resonate with the target audience By leveraging digital marketing channels and emphasizing the unique qualities of bamboo furniture, businesses can effectively position their products within this competitive landscape.

Because the US occupied the southern half and the Soviet Union controlled the north, after being liberated in 1945, the Korean peninsula was divided into two South and North In

1948, the Government of the Republic of Korea was established, the only legal government recognized by the international community, taking Seoul as the capital of Korea

Currently, Korea still preserves the old traditional beauty through the organization of exhibitions on handicrafts

N ATIONAL BUSINESS ENVIRONMENT

South Korean culture is deeply rooted in oriental traditions, emphasizing the importance of family life, which is highly respected and safeguarded People in South Korea maintain strong connections with one another and with nature, as evidenced by their architectural choices Homes are designed to harmonize with the natural environment, featuring open spaces that foster a seamless integration between indoor living and the outdoors.

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products The focus should be on utilizing sustainable materials such as wood, bamboo, knitting, and cork, while minimizing the use of plastic Research from VIETTRADE indicates that 37.6% of 3,018 respondents frequently purchase eco-friendly products, highlighting a growing consumer preference for sustainability Furthermore, hypermarkets emerge as the primary retail channel for South Korean consumers seeking environmentally friendly items, making them a key target for marketing efforts.

South Korean food culture is an integral part of its traditional lifestyle, where meals are typically enjoyed while sitting on the floor The dining experience is visually appealing, featuring a variety of colorful dishes on the table To enhance comfort during meals, many households use bamboo seat cushions, reflecting a cultural affinity for natural materials Additionally, items like pot linings and table mats are often crafted from bamboo, showcasing a harmonious connection to nature in South Korean dining practices.

To successfully enter the Korean market, developing an international marketing plan for bamboo furniture products is essential This plan should focus on understanding the unique preferences of Korean consumers, emphasizing the eco-friendly and sustainable aspects of bamboo furniture Additionally, effective branding and targeted advertising strategies will be crucial in positioning these products favorably within the competitive landscape Collaborating with local distributors and leveraging online platforms can enhance market penetration and increase visibility By aligning marketing efforts with cultural values and trends in Korea, bamboo furniture can attract a dedicated customer base and achieve sustainable growth in this emerging market.

In South Korea, religions from Shamanism to Buddhism, Confucianism, Christianity, Islam all exist and live peacefully According to the 2015 census, 44% of the South Korean population is religious

Among them, Buddhism and Confucianism are the two roots of South Korean thought, more than half of South Korea's monuments and cultural heritage are related to Buddhism or Confucianism

In South Korea, similar to Vietnam, the predominant use of wood and bamboo in the construction of temples and pagodas significantly influences the religious practices of 44% of the population.

According to The World Bank, in 2021 South Korea's population will reach 51,836,239 people, an increase of 71,417 people compared to the previous year's population

Over 50% of South Korea's population resides in the capital city, Seoul, along with major urban areas like Incheon and Gyeonggi, as reported by The Korea Times based on data from the Korean statistical information agency on July 1, 2020.

Since then, people's demand for products made of bamboo and wood with multi-functions has increased in order to save space and be used longer

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding the unique preferences and cultural nuances of Korean consumers, emphasizing the sustainability and eco-friendliness of bamboo furniture Additionally, leveraging digital marketing strategies and partnerships with local distributors can enhance brand visibility and consumer engagement Conducting thorough market research will help identify key competitors and potential market gaps, ensuring a tailored approach that resonates with the target audience Ultimately, a well-structured marketing plan will facilitate a successful entry into the competitive Korean furniture market.

Capital cities and provinces under the central government

South Korea is home to six capital cities, with Seoul serving as the primary capital To qualify as a capital city, a location must have a population of over one million and a well-developed industrial and service sector Notably, Seoul is a unique capital, directly governed by the Prime Minister of South Korea.

Autonomous counties, counties and cities

Currently, Korea has 69 autonomous districts, including 25 districts under the capital city Seoul and 44 districts in other capital cities

The autonomous systems of counties and cities foster unique development characteristics, enabling new businesses to easily penetrate niche markets and capture small market shares.

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This strategy should focus on understanding consumer preferences, identifying target demographics, and leveraging the growing trend towards sustainable and eco-friendly furniture options Additionally, effective branding and marketing channels, such as social media and local partnerships, will be crucial in establishing a strong presence in Korea Emphasizing the unique qualities of bamboo, such as its durability and environmental benefits, can help differentiate these products in a competitive marketplace.

About organizational apparatus and operating mechanism

The National Assembly of the Republic of Korea serves as the unicameral national legislature, representing the will of the people and responsible for enacting all laws in South Korea.

The National Assembly consists of 253 patrons in local constituencies and 47 patrons through proportional representation The latter is meant as a means to bring people with specific expertise into the guild

The Council of State, commonly known as the "Cabinet meeting", will review important policies that fall under the power of the Executive

South Korea adopted a system of local self-government in June 1995 The head of local government and local council members are elected by direct popular vote for a four-year term

The finances of South Korean local governments are mainly composed of two sources of revenue: local taxes and non-tax revenues

Thanks to the government apparatus and domestic relations that promote democracy and people's voting, in South Korea, legal and tax issues will also be more transparent and clear

South Korea strives to promote friendly relations and cooperation with other countries As of June 2020, South Korea maintains diplomatic relations with a total of 191 countries

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan South Korea, a member of the United Nations since 1991 and the OECD since 1996, has a robust economy and a growing interest in sustainable and eco-friendly products Collaborating with international organizations such as UNESCO and WHO can enhance brand credibility and visibility Understanding local consumer preferences and leveraging South Korea's commitment to innovation and design will be crucial for market penetration and establishing a strong presence in this competitive landscape.

South Korea actively engages in international cooperation to leverage its growing economic power, contributing to programs that assist developing nations through organizations like the World Bank, IMF, and OECD.

Picture 2.9: The FDI incentives offered by the South Korean Government

Most of the FDI incentives offered by the South Korean Government are provided through:

- Tax support (corporate and income tax relief, acquisition tax and property tax relief, excluding customs duties)

Developing an effective international marketing plan for bamboo furniture products aimed at entering the Korean market involves several key strategies First, it is essential to understand the unique preferences and cultural values of Korean consumers regarding sustainable and eco-friendly products Second, conducting thorough market research will help identify potential competitors and market trends within the Korean furniture industry Third, leveraging digital marketing channels and social media platforms can enhance brand visibility and engagement with target audiences Finally, establishing partnerships with local distributors and retailers will facilitate smoother entry into the market and help build a strong brand presence.

- Cash allowance (land purchase cost, land rental cost, employment/ education/ training allowance)

- Industrial location support (location support, price difference allowance, rental discount subsidy)

Industrial support services play a crucial role in the high-tech industry, encompassing R&D services, manufacturing, travel services, and welfare facilities These services are strategically located in exclusive geographical areas, such as industrial complexes near ports or airports, which facilitate favorable conditions for businesses engaged in foreign and international trade The proximity to transportation hubs enhances the efficiency of distribution and logistics, benefiting companies operating in these dynamic environments.

Picture 2.10: Korea map in the world

(Source GobalEDGE , https://globaledge.msu.edu/countries/south-korea/statistics)

I NDUSTRY COMPETITORS

Picture 2.13: Furniture Market share in Korea

A February 2022 survey of South Korean consumers revealed that Acebed was the most preferred furniture brand, receiving 14.9% of responses Close behind were Hanssem and IKEA, with 13.6% and 12.9% of respondents favoring these brands, respectively.

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This plan should focus on understanding consumer preferences, identifying target demographics, and leveraging the growing interest in sustainable and eco-friendly products Additionally, incorporating effective branding strategies and utilizing digital marketing channels will enhance visibility and attract potential customers Collaborating with local distributors and participating in trade shows can further facilitate market entry and establish a strong presence in Korea.

The data indicates a highly competitive market where no single business holds more than 30% market share To succeed, it is crucial to capture a larger market share and enhance brand awareness significantly.

With over 40 years of expertise in designing and manufacturing home furniture, Livart stands out for its exceptional offerings The company specializes in high-quality home furniture, kitchen solutions, and premium wooden doors, perfectly tailored for expansive environments like luxury apartments and complex buildings.

Recent market share and sales:

Hyundai Livart's sales in the first quarter were 368.7 billion won and operating profit was 2.9 billion won Although sales increased 11.4% year-on-year, operating profit fell by 70.3%

MUJI, a Japanese lifestyle brand, is increasingly popular among the MZ generation for its clean and practical products Beyond its offerings in fashion and food, MUJI also specializes in wooden and bamboo furniture, appealing to consumers seeking simplicity and functionality in their living spaces.

Recent market share and sales:

Revenue from 137.8 billion won in 2018 fell to 124.3 billion won after the No Japan event in 2019 and halved to 62.7 billion won in 2020

IKEA Korea, a subsidiary of the global furniture retailer, launched its operations in the domestic market with the opening of the IKEA Gwangmyeong branch in 2014 Today, the company has expanded to include four offline stores and a robust e-commerce platform, with locations in Goyang, Giheung, and Dongbusan.

Developing an international marketing plan for bamboo furniture products to enter the Korean market involves several key strategies First, it's essential to conduct thorough market research to understand consumer preferences and trends in Korea Next, identifying target demographics will help tailor marketing efforts effectively Additionally, leveraging digital marketing channels and social media can enhance brand visibility and engagement Collaborating with local distributors and retailers will facilitate smoother market entry and distribution Finally, emphasizing the sustainability and eco-friendliness of bamboo furniture can resonate with environmentally-conscious consumers in Korea, making it a compelling selling point.

Recent market share and sales:

Sales in fiscal year 2020 (September 2019 to August 2020) reached 663.4 billion won, up 32.6% year-on-year But 2021 is different IKEA Korea's sales for fiscal year 2021 (last September

- August this year) were 684.6 billion won, up only 3.4% year-on-year

Hanssem always held the No 1 market share from 1986 to 2021, then held the

In 2022, the company maintained its position as the leading brand in the kitchen furniture sector, boasting the No 1 market share for several years It has been recognized as the top company in the kitchen furniture industry by the Korea Industrial Brand Strength Index (K-BPI) for an impressive 17 consecutive years.

Hanssem currently has a network of 35 Rehouse standard stores nationwide The plan is to increase that number to 50 this year

Recent market share and sales:

Hanssem plans to enhance its furniture sales and remodeling business by focusing on offline standard stores With IMM Private Equity (IMM PE) becoming the largest shareholder and strengthening its remodeling operations, the expansion of the sales network is anticipated to drive significant growth.

P OTENTIAL OF NEW BUSINESSES ENTERING THE INDUSTRY

The rising purchasing power and demand for this item in Korea have led to the emergence of numerous potential competitors, particularly in craft villages These competitors, with their deep understanding of local culture, pose significant challenges for Sbamboo in maintaining its market share.

S UPPLIER STRENGTH

Sbamboo is entering a new market for the first time and currently lacks suppliers, making it essential to identify a reputable service provider to establish a solid foundation for our operations.

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on leveraging the strengths of local distributors while negotiating favorable terms to enhance collaboration Additionally, expanding supply sources is crucial to ensure a steady flow of products and meet market demands effectively By carefully navigating these strategies, businesses can achieve their desired outcomes in the competitive Korean market.

C USTOMER STRENGTH

The significant differentiation of bamboo products from competitors, combined with limited design variety, places a strong emphasis on price and quality that captivates customers With access to diverse sources of information, consumers can make informed purchasing decisions Additionally, post-purchase policies, including return and exchange options for defective products, play a crucial role in customer satisfaction, enhancing their bargaining power in the market.

Koreans exhibit a strong preference for domestic products due to high national pride, with only 1.9% favoring foreign goods A significant 54.9% prioritize quality in their purchasing decisions, while 43.1% choose local products simply for being domestically produced Additionally, 80.5% believe that Korean companies abroad positively impact the national economy more than foreign businesses do locally Koreans are drawn to products with diverse designs and vibrant colors, which, combined with guaranteed quality, fuels their shopping enthusiasm This presents an opportunity for domestic products, particularly bamboo furniture, known for its superior impact resistance and durability when treated, making it a viable alternative to traditional wooden furniture.

In South Korea, demanding consumers expect products to possess authoritative licenses and inspection documents from competent authorities to build trust The strong consumer association in the country effectively safeguards consumer interests, ensuring that products meet high standards However, negative media coverage can quickly lead to a boycott of any product perceived as subpar, highlighting the importance of maintaining a positive reputation.

Koreans do not calculate the details and details: the potential because the price of the product will not affect the purchase decision of customers much.

R ISKS AND THREATS FROM SUBSTITUTE PRODUCTS

Plastic furniture is experiencing a surge in demand, alongside bamboo furniture, due to its affordability, versatility, and improved durability Additionally, traditional wood products are evolving to offer greater adaptability for consumers, meeting diverse needs in the market.

Developing an international marketing plan for bamboo furniture products to enter the Korean market involves a strategic approach to understand consumer preferences, competition, and distribution channels Emphasizing sustainability and eco-friendliness can appeal to the growing market of environmentally conscious consumers in Korea Conducting thorough market research will help identify target demographics and tailor marketing messages effectively Collaborating with local distributors and leveraging online platforms can enhance product visibility and accessibility Ultimately, a well-crafted marketing strategy will position bamboo furniture as a desirable choice for Korean consumers, tapping into trends that favor natural and sustainable materials.

ENTRY MODE SELECTION

Korea, a stable market close to Vietnam with minimal unrest and numerous bilateral cooperation agreements, presents an attractive opportunity for Vietnamese enterprises To enter this market, the theory of internationalization is favored over internalization However, according to the eclectic OLI framework, these enterprises face challenges, including a lack of strong brand recognition and insufficient experience in foreign markets, which hinders their ability to identify competitive advantages against local competitors.

DNA plans to establish a wholly owned limited liability company for direct export, a common choice among international firms for setting up subsidiaries This company will manage all customer communications and negotiations with global businesses, taking full responsibility for customer acquisition, contract establishment, marketing, sales, logistics, and international payments While this presents a significant opportunity for Southeast Asia to enhance its brand on the international stage, it also entails considerable risks due to the substantial financial investment required to succeed in a new market.

To establish a company in Korea, Sbamboo will collaborate with Tetra Consultants, a reputable partner specializing in company formation services, ensuring all necessary conditions are met for a smooth setup process.

“Under the Foreign Investment Promotion Act (FIPL), you will also be required to invest

100 million KRW (approximately $90,000) in the company you want to set up So Sbamboo decided to invest 1 billion KRW to establish the company.”

Sbamboo needs to coordinate with Tetra Consultants to complete the following 8 steps to have a company in Korea:

Tetra Consultants will gather essential details about your intended business, including the nature of activities, capital investment, and the nationalities of directors and shareholders With this information, we will advise you on the most appropriate business entity type and identify any necessary licenses for legally operating in South Korea.

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This plan should focus on understanding local consumer preferences, identifying key distribution channels, and leveraging sustainable practices that resonate with eco-conscious buyers Additionally, effective branding and targeted advertising strategies will be crucial in highlighting the unique benefits of bamboo furniture By conducting thorough market research and establishing partnerships with local retailers, businesses can enhance their visibility and appeal in this competitive landscape.

• Tetra Consultants will then ensure all the due diligence documents of the directors and shareholders have been received

Step 3: Reserve preferred company name

• Tetra Consultants will then check for the availability of the preferred company name and reserve the same

Step 4: Preparing and submitting relevant documents

• Our team of experts will begin preparing all the relevant documents including the Certificate of Incorporation, Articles of Association, and more

• We will then proceed to submit all the relevant documents, on your behalf, for the company formation

Once Tetra Consultants establishes your company in South Korea, you will receive essential documents such as the business registration certificate, memorandum and articles of association, and the register of directors and shareholders These documents will contain your South Korea company registration number, which is necessary for conducting business and opening a corporate bank account in the country.

• These documents will be in Korean If you wish, Tetra Consultants will provide you with the translated versions in your preferred language

• Tetra Consultants will assist you in registering your business and receiving a tax identification number

• Tetra Consultants will proceed to open a corporate bank account for your newly incorporated company

• We will take advantage of our existing banking network to help you open a bank account with a local or international reputable bank

• To know more about how to open a bank account in South Korea, refer to this webpage

Step 8: Compliant with the laws

• Once company formation is complete, Tetra Consultants will continue to support you in staying compliant with the laws of the government

• We will provide assistance in every way you require – preparing financial statements, filing annual returns, and more

• If you are keen to know about how to register a company in Korea, Tetra Consultants has prepared a step-by-step explanation of all steps required

To successfully enter the Korean market, developing an international marketing plan for bamboo furniture products is essential This plan should focus on understanding consumer preferences, identifying market trends, and leveraging the eco-friendly appeal of bamboo Additionally, effective distribution channels and strategic partnerships can enhance market penetration Tailoring marketing messages to resonate with Korean cultural values will also be crucial in attracting potential customers By emphasizing sustainability and quality, bamboo furniture can position itself as a desirable choice in the competitive Korean furniture market.

TARGET MARKET

S EGMENTATION

Sex Male/Female Male/Female/ Male/Female/

Income Low-medium Medium Medium-

Job Student/ part-time job

Student, Office workers, public servants, freelancers…

Office workers, public servants, freelancers…

Education College, University College/University/Graduate… College/University/Graduate…

Pursue simple and healthy habits Set a series of realistic, achievable, and measurable mini-goals

Live with a plan, to the fullest, without waste

Embrace simple and healthy habits to enhance your lifestyle Utilize your free time for personal development and building new relationships, as many individuals enjoy the benefits of single life Additionally, prioritize saving money for essential expenses and enjoyable experiences.

Embrace simple and healthy habits to enhance your well-being Many individuals dedicate their free time to personal development and fostering new relationships While they enjoy forming connections, they often prefer to remain unmarried for the time being, focusing instead on thoughtful shopping and planning for the future.

Care about quality, like colorful products, rich and eye-catching goods

Willing to use savings to buy if the product enhances their self- esteem

When shopping, individuals tend to be meticulous, prioritizing quality and favoring vibrant, eye-catching products They carefully evaluate their choices, considering various expenses to ensure their purchases align with their budget.

When shopping, individuals tend to be very selective, prioritizing quality and vibrant, visually appealing products They often deliberate carefully before making a purchase, considering their budget and other financial responsibilities.

City/provi nce Oegosan Onggi Village, Seoul, Busan, Daegu…

Where to buy Supermarket, market, souvenir shop

Loyalty level Medium High High

Relatives, friends, influencers Relatives, friends, colleagues

Price sensitive Low -Medium Medium - High Medium - High

Frequency of buying Light - Medium Medium - Heavy Medium

Developing an international marketing plan for bamboo furniture products aimed at entering the Korean market involves several key strategies First, understanding the unique preferences and cultural values of Korean consumers is essential to tailor marketing efforts effectively Second, leveraging eco-friendly and sustainable attributes of bamboo furniture can resonate well with the growing demand for environmentally conscious products in Korea Third, establishing partnerships with local distributors and retailers will enhance market penetration and brand visibility Additionally, utilizing digital marketing channels, such as social media and e-commerce platforms, can effectively reach a broader audience Finally, conducting thorough market research will help identify trends and potential challenges, ensuring a successful entry into the competitive Korean market.

T ARGETING

Most of them live in apartments ranging in size from 30 to 40 pyeong

The main areas are the centers of provinces and urban areas

The number of districts is estimated to be around 2 million households

These are mainly housewives in their late 30s to 50s

These are parents whose children are in elementary, middle, and high school

Consumers prioritize furniture that emphasizes intricate designs, particularly in the kitchen, which is viewed as the most important area of the home They prefer to shop for these pieces in physical stores rather than online or through home shopping channels.

Behavior: Wants to check the overall condition of the products in the store After experiencing different products, they will choose the most satisfactory products

The key to excellent product quality and reliable construction, considers the design spirit of the purchased and owned product

They are willing to pay extra to upgrade quality and features

All are well-intentioned consumers

The estimated interior budget is 35 to 40 million won.

P OSITIONING

To effectively compete in the industry, it's essential to target a specific niche by prioritizing customer satisfaction This begins with a design that emphasizes functionality and convenience, ensuring a comfortable in-store experience Additionally, offering products with exceptional durability fosters brand loyalty among consumers Finally, promoting health, safety, and eco-friendliness is crucial for appealing to female consumers, thereby enhancing brand attractiveness.

Therefore, the company's positioning is determined through "Furniture that values family health and the environment" Continually communicate the concept to consumers to make an impression

To enhance customer satisfaction, it is essential to focus on product-oriented strategies that integrate smart solutions for consumers This approach involves developing integrated products while consistently providing excellent customer service and warranty support.

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding consumer preferences, identifying key distribution channels, and emphasizing the sustainability and eco-friendliness of bamboo furniture Additionally, conducting market research to analyze competitors and tailor marketing strategies will enhance brand visibility Engaging with local influencers and utilizing digital marketing platforms can further strengthen market entry efforts Ultimately, a well-structured marketing approach will facilitate the successful introduction of bamboo furniture in Korea, appealing to environmentally conscious consumers.

Developing an international marketing plan for bamboo furniture products aimed at entering the Korean market involves several key strategies First, it is essential to conduct thorough market research to understand consumer preferences and trends in Korea Next, establishing a strong brand identity that highlights the sustainability and unique qualities of bamboo furniture will resonate with eco-conscious consumers Additionally, leveraging digital marketing channels, such as social media and e-commerce platforms, can enhance visibility and accessibility Collaborating with local distributors or retailers can also facilitate market entry and build trust with Korean customers Finally, continuous evaluation and adaptation of the marketing strategy will ensure long-term success in the competitive Korean market.

EXTERNAL ENVIRONMENT ISSUES

P OLITICAL RISK

In the April 2020 National Assembly elections, President Moon Jae-in's ruling Democratic Party secured a majority, bolstered by widespread public approval for its COVID-19 pandemic response This left-leaning party is positioned to advance its reform agenda leading up to the 2022 presidential election, focusing on tackling unemployment and implementing significant changes to chaebols, particularly by diminishing corporate dominance in the economy.

The reform of chaebols has contributed to international investors' peace of mind in terms of transparency and information, but also caused some political conflicts

Global tensions are escalating due to ongoing conflicts, including the Russia-Ukraine war and China's increasing military pressure on Taiwan In this climate of uncertainty, South Korea remains perpetually divided from North Korea, with the demilitarized zone serving as a stark reminder of their separation.

D IFFERENCE IN CULTURE

In South Korea, it is common for families to eat while sitting on the floor rather than using chairs, reflecting a deep-rooted cultural practice Typically, a standard Korean household consists of multiple generations living together, emphasizing the sacred bond among family members, similar to other Asian cultures Additionally, traditional products made of bamboo and rattan have become integral to daily life in Korea, distinguishing their customs from those of Vietnam.

In Vietnam, if you write in red ink to decorate items, it will be considered lucky, in South Korea this is taboo.

E XCHANGE RISK

Economic and political changes can introduce volatility that impacts business payment behavior Despite this, a fundamentally secure business environment may still present occasional challenges for companies Overall, the average probability of default among businesses remains at an acceptable level.

The current business environment is highly favorable, characterized by readily accessible and reliable corporate financial information Debt collection processes are efficient, and the overall institutional quality is excellent Companies engage in transactions seamlessly within an A1-rated environment.

To successfully enter the Korean market, developing an international marketing plan for bamboo furniture products is essential This plan should focus on understanding consumer preferences, identifying key competitors, and leveraging the eco-friendly appeal of bamboo Additionally, incorporating targeted digital marketing strategies and establishing partnerships with local distributors will enhance market penetration Emphasizing the sustainability and unique design of bamboo furniture can attract environmentally conscious consumers in Korea.

With a high rating, it is completely safe to believe that the value of South Korea's currency is a strong currency and a high rate of stability in the world

Conducting business in South Korea requires adherence to local regulations and an understanding of currency fluctuations, as all cashew nut transactions are conducted in South Korean Won Consequently, both global and national economic challenges can significantly impact the exchange rate between the Won and the Vietnamese Dong (VND).

L EGAL AND TAX ISSUES

Since 2020, companies exporting wood and wood products to Korea are required to declare the origin of imported timber to the Forestry Administration prior to customs clearance, ensuring that the wood is of legal origin and meets quality standards.

Conducting business in any country involves adhering to local laws, regulations, and tax obligations Under the VKFTA agreement, South Korea has pledged to eliminate tariffs on up to 64 wood product lines for Vietnam.

To successfully enter the Korean market, developing an international marketing plan for bamboo furniture products is essential This plan should focus on understanding consumer preferences in Korea, emphasizing the eco-friendly and sustainable aspects of bamboo furniture Additionally, leveraging digital marketing strategies and local partnerships will enhance brand visibility and accessibility Conducting thorough market research will aid in identifying target demographics and tailoring marketing messages accordingly By addressing cultural nuances and promoting the unique benefits of bamboo furniture, businesses can effectively position themselves in the competitive Korean market.

MARKETING STRAGETY

P RODUCT

Multi-functional furniture, convenient, high sophistication The design is both classic and modern like a work of art

• Furniture products for the living room and kitchen include table, chair, bed, table lamp, picture frame, flowerpot, carpet, tray,

• Main color: white, black, brown, beige

• Raw materials: bamboo, rattan, quality assurance from Vietnam

Sbamboo's products stand out from traditional Korean handicrafts due to their versatility and multifunctionality, allowing customers to maximize both space and utility For instance, innovative designs like smart beds that double as sofas and shelves that incorporate desks exemplify this approach Given the high cost of land in South Korea, achieving a spacious and comfortable living environment is a significant challenge, making these multifunctional solutions particularly valuable.

Sbamboo offers furniture made from bamboo, rattan, and cork that addresses Koreans' concerns about weight and durability Their products are designed to be both durable and compact, ensuring they meet international quality standards.

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding the unique preferences and trends in the Korean furniture market, emphasizing the eco-friendly and sustainable aspects of bamboo products Additionally, identifying key distribution channels and potential partnerships within Korea will enhance market penetration Tailoring marketing strategies to resonate with Korean consumers, including localized advertising and promotions, will further strengthen brand presence By aligning product offerings with market demands and cultural values, businesses can effectively establish themselves in the competitive Korean furniture landscape.

Sbamboo's interior not only focuses on versatility but also focuses on meticulousness and sophistication in every detail

The SBamboo collection showcases a fresh and distinctive design that honors traditional Korean culture, ensuring it remains engaging and vibrant Each product is crafted as a unique artistic piece, reflecting its own individual style.

Product line and product mix:

Furniture from bamboo and rattan Sbamboo

• Furniture and decorations from bamboo

• Furniture and decorations from cork Kitchen furniture

• Furniture and decorations from bamboo

• Furniture and decorations from cork

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This plan should focus on understanding the unique preferences and trends of Korean consumers, emphasizing the eco-friendly and sustainable aspects of bamboo furniture Effective strategies may include targeted online marketing campaigns, collaborations with local influencers, and participation in trade shows to increase brand visibility Additionally, establishing strong distribution channels and adapting products to meet local tastes will be crucial for gaining a competitive edge in this growing market.

Sbamboo is strategically diversifying by introducing new products to the Korean market, where rattan and bamboo furniture are less popular compared to wooden handicrafts and ceramics Targeting the middle-class office demographic in South Korea, which embraces a modern yet minimalist lifestyle, Sbamboo is expanding its product lines and focusing on exceptional quality and diverse designs This approach aims to enhance product versatility, making it more appealing to this specific consumer group.

Logo: eye-catching, S-shaped made from yellow bamboo

Symbol: Green bamboo bush - in the eyes of Koreans and Vietnamese people, bamboo represents the indomitable spirit, resilience in the face of storms

Then this bamboo also has the same meaning, along with that, the bamboo symbol reminds the product's material and the product's durability over time

To ensure product safety during transportation while enhancing aesthetic appeal, each item will be wrapped in one layer of plastic and one layer of patterned paper featuring a vibrant combination of the five traditional Korean colors: white, black, red, yellow, and blue Additionally, the packaging paper is designed to be recyclable or reusable, promoting environmental sustainability for our customers.

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding consumer preferences in Korea, highlighting the sustainability and eco-friendliness of bamboo furniture Effective strategies may include targeted digital marketing, partnerships with local retailers, and participation in trade shows to increase brand awareness Additionally, adapting product designs to meet local tastes and ensuring compliance with Korean regulations will be crucial for market acceptance By leveraging these strategies, businesses can effectively position their bamboo furniture products in the competitive Korean market.

Warranties: Product return policy within 6 months if the fault is caused by the manufacturer

Shipping service: Sbamboo will free shipping within 10km, beyond that range Sbamboo will support customers with 50% of the shipping cost

Installation service: Sbamboo will have a support staff to install products for free when customers buy large-sized products.

P RICING

To achieve its goals in a competitive market with price-sensitive supply and demand, Sbamboo will focus on building brand awareness and loyalty, increasing market share, and converting customers from competitors The company aims to surpass smaller rivals by implementing a market penetration pricing strategy for new products With optimized production costs from Vietnam and an efficient distribution system, Sbamboo can effectively leverage this strategy Given the potential in the market and existing gaps in market share, Sbamboo Corporation is well-positioned to adopt a low-profit approach to penetrate the market successfully.

To be able to have a small profit to maintain the development of the business, Sbamboo should use the Cost-Plus Pricing method

A Sbamboo product can be priced as follow:

- Fixed cost per product: 25,000,000/1000= 25,000 won

- Variable cost per product: 15,000 won

- Desired rate of return: 40,000,000*10%= 4,000,000 won

- Expected profit per product: 4,000,000/1000= 4,000 won

When entering a new market, Sbamboo should implement a promotional strategy when it

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on innovative strategies such as introducing a membership card to enhance customer loyalty and encourage repeat purchases Additionally, employing a loss leader strategy can stimulate excitement among consumers, allowing for the simultaneous introduction of new products while maintaining customer interest By leveraging these tactics, businesses can effectively increase their market presence and drive sales in South Korea.

Early payment discount: The members in the distribution channel who pay on time according to the contract are entitled to a payment discount of 1.5% of the total payment value

Sbamboo engages in selective and exclusive distribution, negotiating with retail chains and stores to offer a 20% discount on their products This significant discount is essential for attracting retail partners and building trust in the brand At that time, the consumer price was set at 52,800 won.

Quantity discount: For partners who buy in large quantities (companies, restaurants, etc.), there will be an additional discount of 7-10% compared to the retail price

Future price fluctuations in international markets may arise from variations in production costs, tax regulation changes, or shifts in exchange rates To mitigate customer dissatisfaction, companies must explore effective strategies to address these potential price changes.

Compare these to competitors’ prices

Sbamboo offers competitive pricing due to its fixed costs being based in Vietnam, where labor and materials are relatively inexpensive As a result, many of Sbamboo's products are priced lower than those of larger brands like Ikea For instance, a chair from Ikea is priced at 10,000 won more than a similar chair from Sbamboo, despite the comparable materials and design.

Developing an international marketing plan for bamboo furniture products aimed at entering the Korean market involves several strategic steps First, conducting thorough market research is essential to understand consumer preferences and trends in Korea Next, identifying target demographics and positioning the bamboo furniture as a sustainable and stylish option can enhance its appeal Additionally, leveraging digital marketing channels, such as social media and e-commerce platforms, will help reach a broader audience Collaborating with local influencers and retailers can further boost brand visibility Lastly, ensuring compliance with Korean regulations and adapting products to meet local tastes will be crucial for successful market entry.

D ISTRIBUTION

To optimize channel system costs and enhance brand awareness, it is essential for managers to closely monitor channel members This ensures that pricing reaches users transparently and that product delivery remains uninterrupted.

Realizing that the leading enterprise and the previous enterprises still do not have much market share and advantages in the industry, Sbamboo orients itself as a market challenger

So Sbamboo will first attack small businesses to have an advantage in brand and market share and then start attacking competitors of the same size

Therefore, Sbamboo uses a selective distribution strategy through reputable stores and retail chains and distributes directly through Sbamboo stores

Using selective distribution is because this strategy can help the product to be widely deployed in the market and can both ensure product quality as well as brand reputation

Product distribution is primarily focused in Seoul and six other major cities: Busan, Daegu, Incheon, Gwangju, Daejeon, and Ulsan Additionally, a selective distribution strategy allows for the availability of products in other provinces, ensuring that customers nationwide can access and purchase them.

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding the unique preferences and cultural nuances of Korean consumers, highlighting the sustainability and eco-friendliness of bamboo as a material Additionally, effective branding and positioning strategies must be implemented to differentiate bamboo furniture from traditional options Collaborating with local distributors and utilizing digital marketing channels will enhance visibility and reach By addressing these key elements, businesses can effectively penetrate the Korean market and establish a strong foothold for their bamboo furniture products.

Direct channel: Sbamboo opens 7 major stores in Seoul, and 6 other cities including Busan,

Sbamboo aims to enhance customer experience by introducing new products in spacious stores located in bustling areas like Daegu, Incheon, Gwangju, Daejeon, and Ulsan Additionally, customers can conveniently purchase Sbamboo products through the company's website.

Indirect distribution channels for furniture include major retail chains like MIRAGE FURNITURE with 13 stores, KOREAN FURNITURE with 18 stores, and GAGUWANG with 16 stores These extensive trading systems operate across various provinces and cities, featuring a well-trained staff and large warehouses to effectively preserve and sell high-quality products from their partners.

Picture 5.1: Furniture distributor in korea

From Vietnam to Korea: using water transport, specifically the ship of Best Logistics

To successfully enter the Korean market, developing a comprehensive international marketing plan for bamboo furniture products is essential This plan should focus on identifying target demographics, understanding local consumer preferences, and leveraging the eco-friendly appeal of bamboo furniture Additionally, strategic partnerships with local distributors and effective online marketing strategies will enhance brand visibility Emphasizing the sustainability and durability of bamboo products will resonate with environmentally conscious consumers in Korea By tailoring the marketing approach to align with cultural values and trends, bamboo furniture can establish a strong presence in the competitive Korean market.

• Fast delivery time and exact deadlines

• Can be transported from Ho Chi Minh City and Hanoi to 192 countries around the world

• Update orders continuously, locate parcels by GPS, follow orders

• High security of data management system

• Preferential prices save up to 50% compared to services of other units

From Korean port to agent: As the most popular and optimal form of road transport in

Korea, SBamboo will choose JBG Logistics, a logistics company in Busan that is very convenient for SBamboo to transport goods

After the production process, the goods are transported from the warehouse of Southeast Asia Handicrafts Import and Export Co., Ltd in Hanoi to Hai Phong seaport

Goods will be stored at the warehouse of Best Logistics company

Cargo transportation from Hai Phong seaport to Busan port connects two significant trade hubs, with Busan being the largest cargo port in South Korea This vital port handles 66% of the country's total import and export volume, underscoring its importance in global trade.

Hire JBG Logistics for efficient transportation of goods to SBamboo's warehouse in Busan, ensuring seamless distribution to retail stores across the nation.

Using a third-party system because the warehouse method of storing inventory helps SBamboo save costs

The warehouse system in Busan offers cost advantages compared to other cities and provides a quieter environment than the bustling atmosphere of Seoul With its central location, SBamboo benefits from convenient transportation access and proximity to the seaport, resulting in significant savings on transportation costs.

An order processing system efficiently manages the workflow of sorting, packing, and shipping orders by collecting data from customer service representatives or directly from customers This information is stored in a centralized database and subsequently transmitted to the accounting and shipping departments for further processing.

Compare it to competitors’ distribution

Sbamboo aims to disrupt the market by implementing a distribution strategy that ensures access to high-quality products at competitive prices, targeting a broader audience beyond major cities like Seoul, where competitors such as Hyundai and Ikea primarily focus their efforts.

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This plan should focus on understanding consumer preferences, identifying key distribution channels, and leveraging the growing trend towards sustainable and eco-friendly products Additionally, conducting thorough market research will help tailor marketing strategies that resonate with Korean consumers, highlighting the unique benefits of bamboo furniture, such as durability and environmental sustainability Engaging with local influencers and utilizing digital marketing platforms can further enhance brand visibility and consumer engagement in this competitive market.

Logo of Asian Craft

Asian Craft is dedicated to becoming the leading handicraft exporter in Vietnam and the region, driven by its innovative and sustainable manufacturing, exporting, and development strategy The company aims to achieve international recognition and standards while showcasing Vietnamese craftsmanship and intellectual excellence on the global stage.

Our goal is to deliver premium products and services that meet international standards, showcasing originality and creativity while reflecting local identities Each offering is not only of exceptional quality but also carries a cultural message, ensuring we effectively meet our customers' genuine needs.

- For employees: To develop a professional, dynamic, creative and humane working environment, enabling high income and equal development opportunities for all employees

- For society: To harmonize the company’s and society’s benefits; to make active contributions to community-oriented activities, and to demonstrate citizens’ sense of responsibilities and national pride

Asian Craft's continously improves all services to respond to the credibility and expectation of customer as well as to build prestige in the market

Their handicraft products are not only ordinary daily life items but also artistic works representing the culture of the nation Aslan Craft has reached the pinnacle of quality,

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan that highlights the variety and sophistication of our offerings By focusing on diverse designs and high-quality craftsmanship, we aim to cater to the unique preferences of Korean consumers Building credibility and trust with our customers will be a priority, ensuring that they feel confident in choosing our products for their homes.

- Cash and cash equivalents: 16 billion VND

- Short-term receivables: VND 113 billion

- Other short-term assets: VND 20 billion

- Investment real estate: 51 billion VND

- Long-term financial investment: 35 billion VND

Human resources consist of a skilled team of artisans from traditional craft villages in Vietnam, working alongside professional design experts This collaboration emphasizes a people-centered approach in all construction and development activities.

At our company, we believe that a customer's smile reflects our happiness We are dedicated to continuously enhancing our techniques, production processes, and services to deliver the highest quality products Our goal is to maximize work efficiency and provide exceptional value to our clients.

Their handicraft products are not only ordinary daily life items but also works of art representing the culture of the nation

Asian Craft exemplifies unparalleled quality, offering a diverse range of products that showcase intricate patterns and refined details to cater to every customer’s preferences We prioritize building credibility and trust with our clientele, ensuring satisfaction with every purchase.

Production process of products from bamboo knitting

• Step 1: Choose bamboo and rattan materials

Choose the best bamboo of Quang Phu - Quang Dien - Thua Thien Hue rattan and bamboo craft village, which is not young, not old, grows straight and has high hardness

To achieve optimal results in their work, artists must first grasp the characteristics of their materials The ideal bamboo is one that is neither too young nor too old, exhibiting straight growth and high hardness For rattan, it is essential to select pieces that are approximately 5 meters long, straight, round, and free from pests, as both overly young and excessively old specimens are unsuitable.

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should encompass market research to understand consumer preferences, competitive analysis, and effective positioning strategies Additionally, leveraging digital marketing channels and local partnerships will enhance brand visibility and consumer engagement Focusing on sustainability and the unique benefits of bamboo furniture can resonate well with eco-conscious Korean consumers Implementing these strategies will facilitate a successful market entry and establish a strong foothold in the growing demand for sustainable furniture in Korea.

Bamboo materials undergo a process where they are cut, dried, and treated to prevent termite damage The two primary methods for termite protection include using the XM5 chemical bath, a user-friendly and safe preservative, or the traditional manual method of soaking the bamboo in water.

Rattan, known for its sharp thorns, requires careful preliminary processing to ensure safety The outer thorny layer is meticulously peeled away to expose the white rattan core Following this, the rattan undergoes a slight drying process before advancing to the initial processing stage.

Bamboo is processed by shaving and polishing it with sandpaper, followed by oven drying and smoking with straw or bamboo leaves This method enhances its color, aids in drying, and prevents warping The result is a rich western brown or dark brown hue, and once cooled, the bamboo can be bent straight for various applications.

Rattan materials undergo a meticulous drying process to enhance both their durability and color Proper drying is essential, as excessive or insufficient smoke exposure can lead to undesirable red hues in the rattan.

The drying process of rattan fiber is critical, as rain can diminish its beauty while excessive sun exposure can strip it of freshness Additionally, if the drying conditions are too humid, the fiber appears dull, whereas overly dry conditions can rob it of its soft shine Consequently, craftsmen must invest significant effort to achieve the ideal drying balance for rattan.

To effectively weave rattan and bamboo, the materials must be skillfully split and spun, with the size and length of the yarn tailored to the specific product being created Larger yarn is typically utilized for basic knitting, while smaller yarn is reserved for more intricate designs Careful attention is required during the rattan splitting process, as the uneven nodes of rattan fibers necessitate a skilled approach to ensure uniformity in the resulting strands.

The quality and aesthetics of rattan-bamboo fibers are one of the leading factors determining the value of traditional bamboo and rattan products

• Step 5: Construction and manufacturing of products

After the knitting is complete, the product will be dipped in glue, painted in color, glossed over the surface, and trimmed to perfection

The materials, after being processed, will be knitted and shaped by the talented and skillful hands of artisans in the village to become beautiful and attractive products

- Having a long-standing and reputable brand in the industry

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding local consumer preferences, emphasizing the sustainability and eco-friendliness of bamboo furniture Additionally, leveraging digital marketing strategies and partnerships with local retailers can enhance brand visibility Conducting market research to identify target demographics and tailoring marketing messages accordingly will be crucial for capturing the interest of Korean consumers By strategically positioning bamboo furniture as a stylish and sustainable option, businesses can effectively penetrate the competitive Korean market.

- Experienced in exporting because the company's existing products have been exported to China and ASEAN markets

Furniture Revenuew in Korea from 2017 to 2025

The Global Bamboo Furniture Market report provides comprehensive market intelligence, utilizing both primary and secondary analyses to assess the competitive landscape It highlights key players anticipated to lead the market during the forecast period from 2019 to 2025.

The global bamboo furniture market, valued at USD 10,376.60 million in 2018, is projected to reach USD 14,895.45 million by 2025, growing at a CAGR of 5.30% Bamboo's popularity stems from its air quality improvement capabilities and its resurgence in modern design, including flooring, wallpaper, and furniture, as well as bathroom accessories Its lightweight and durable nature make bamboo materials increasingly favored in both commercial and residential sectors Notably, bamboo stools currently dominate the market, alongside other popular furniture types such as bamboo planks, laminates, and strips.

Developing an international marketing plan for bamboo furniture products to enter the Korean market is essential due to the rising popularity of bamboo stools in commercial spaces like cafes, bars, and outdoor restaurants, which seek a contemporary aesthetic The growing demand for these products has led to significant investments in product innovation and research and development, contributing to the overall expansion of the global bamboo furniture market.

Market size forecast

The Asia Pacific region has recently emerged as the leading market for bamboo furniture and is projected to experience significant growth Notably, Korea stands out as a promising market due to its cultural affinity for bamboo products and the limited presence of major competitors.

2.3 Overview of the development history of South Korea

South Korea, often referred to as "the land of Kim Chi," captivates foreign visitors with its rich and unique culture and artistic heritage One of the lesser-known traditional art forms that has flourished over the years is pottery, showcasing the country's deep-rooted artistic traditions.

Korean history of the Goryeo - Goryeo period (918 - 1392)

In 918, Emperor Wang Gun established the Goryo dynasty, designating Song-ak (modern-day Gaesong) as its capital During this period, Buddhism, the prevailing religion in Korea, significantly influenced the culture and art, leading to a surge in the production of celadon (cheongja) glazed porcelain This demand resulted in the rapid evolution of cheongja glaze, characterized by more organic shapes and intricate decorations, including motifs of animals and birds.

History of Korea during the Joseon period (1392-1910)

Grandfather Lee Seong Gye, the founder of the Joseon dynasty, established a rule deeply rooted in Confucian thought, which fostered the emergence of many influential figures during this era This period also saw the creation of various furniture items, including wardrobes, chests, shelves, tables of all sizes, bookcases, and cupboards, reflecting the artistic and functional advancements of the time.

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products The demand for sustainable and eco-friendly items has surged, making bamboo furniture a viable option for daily living Historically, the Joseon society prioritized academia, leading to a neglect of trade and production, which has hindered adaptation to modern market dynamics By addressing these historical challenges and emphasizing the benefits of bamboo furniture, businesses can effectively position their products to meet the evolving consumer preferences in Korea.

Because the US occupied the southern half and the Soviet Union controlled the north, after being liberated in 1945, the Korean peninsula was divided into two South and North In

1948, the Government of the Republic of Korea was established, the only legal government recognized by the international community, taking Seoul as the capital of Korea

Currently, Korea still preserves the old traditional beauty through the organization of exhibitions on handicrafts.

Korea's development

Korean family

South Korean culture is deeply rooted in oriental traditions, emphasizing the importance of family life, which is both respected and safeguarded The close-knit relationships among individuals extend to a profound connection with nature Homes in South Korea are designed to harmonize with their natural surroundings, featuring open spaces that facilitate this bond, ensuring that the main structures blend seamlessly with the environment.

To successfully enter the Korean market, developing an international marketing plan for bamboo furniture products is essential Bamboo furniture utilizes sustainable materials, minimizing plastic use and promoting eco-friendliness through wood, bamboo, knitting, and cork Research by VIETTRADE indicates that 37.6% of 3,018 respondents frequently purchase environmentally friendly products, highlighting a significant demand Additionally, hypermarkets are the preferred shopping venues for South Korean consumers seeking eco-friendly options, making them a crucial target for marketing efforts.

Korean house design

Food culture is a vital aspect of South Korean identity, characterized by communal dining where families often sit on the floor South Korean tables are adorned with a variety of visually appealing dishes, reflecting the country's rich culinary traditions This practice has led to the widespread use of bamboo seat cushions and other natural products, such as pot liners and table mats, which align with a lifestyle that embraces nature.

Korean meal

Developing an international marketing plan for bamboo furniture products is essential for entering the Korean market This plan should focus on understanding local consumer preferences, identifying key distribution channels, and leveraging the sustainability aspect of bamboo furniture Additionally, effective branding and targeted advertising strategies will be crucial in appealing to environmentally conscious Korean consumers By conducting thorough market research and establishing partnerships with local retailers, businesses can successfully position their bamboo furniture products in Korea, tapping into the growing demand for eco-friendly home furnishings.

In South Korea, religions from Shamanism to Buddhism, Confucianism, Christianity, Islam all exist and live peacefully According to the 2015 census, 44% of the South Korean population is religious

Among them, Buddhism and Confucianism are the two roots of South Korean thought, more than half of South Korea's monuments and cultural heritage are related to Buddhism or Confucianism

In South Korea, much like in Vietnam, temples and pagodas predominantly utilize wood and bamboo as their primary construction materials, which significantly influences 44% of the religious population in the region.

According to The World Bank, in 2021 South Korea's population will reach 51,836,239 people, an increase of 71,417 people compared to the previous year's population

Over half of South Korea's population resides in urban areas, primarily in the capital city of Seoul and its surrounding major cities, including Incheon and Gyeonggi, as reported by The Korea Times based on data from the Korean statistical information agency on July 1, 2020.

Korean wall-street

Since then, people's demand for products made of bamboo and wood with multi-functions has increased in order to save space and be used longer

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding the unique preferences and trends of Korean consumers, highlighting the sustainability and eco-friendliness of bamboo furniture Effective strategies may include leveraging digital marketing channels, collaborating with local influencers, and participating in trade shows to enhance brand visibility Additionally, conducting thorough market research will help identify potential competitors and market gaps, ensuring a competitive edge By tailoring the marketing approach to resonate with Korean culture and values, the bamboo furniture brand can establish a strong presence in this promising market.

Capital cities and provinces under the central government

South Korea is home to six capital cities, with Seoul serving as the primary capital A city qualifies as a capital if it has a population of over 1 million and boasts a robust industrial and service sector Notably, Seoul is a unique capital city, directly governed under the Prime Minister's authority.

Autonomous counties, counties and cities

Currently, Korea has 69 autonomous districts, including 25 districts under the capital city Seoul and 44 districts in other capital cities

The autonomous systems of counties and cities foster unique development characteristics, allowing new businesses to easily penetrate niche markets and capture small market shares.

Developing an international marketing plan for bamboo furniture products aimed at entering the Korean market involves several key strategies First, it is essential to conduct thorough market research to understand consumer preferences and trends in Korea Next, establishing a strong brand presence through targeted advertising and social media engagement will help attract potential customers Additionally, forming partnerships with local distributors can enhance market penetration and distribution efficiency Emphasizing the eco-friendly and sustainable aspects of bamboo furniture will resonate with environmentally conscious consumers in Korea Finally, implementing a competitive pricing strategy will be crucial to gaining a foothold in this dynamic market.

About organizational apparatus and operating mechanism

The National Assembly of the Republic of Korea serves as the unicameral national legislature, embodying the will of the South Korean people It is responsible for enacting all the nation's laws.

The National Assembly consists of 253 patrons in local constituencies and 47 patrons through proportional representation The latter is meant as a means to bring people with specific expertise into the guild

The Council of State, commonly known as the "Cabinet meeting", will review important policies that fall under the power of the Executive

South Korea adopted a system of local self-government in June 1995 The head of local government and local council members are elected by direct popular vote for a four-year term

The finances of South Korean local governments are mainly composed of two sources of revenue: local taxes and non-tax revenues

Thanks to the government apparatus and domestic relations that promote democracy and people's voting, in South Korea, legal and tax issues will also be more transparent and clear

South Korea strives to promote friendly relations and cooperation with other countries As of June 2020, South Korea maintains diplomatic relations with a total of 191 countries

Developing an international marketing plan for bamboo furniture products aimed at entering the Korean market requires a comprehensive understanding of South Korea's economic landscape and cultural preferences As a member of the United Nations since 1991 and the OECD since 1996, South Korea has established itself as a significant player in international trade Engaging with organizations like UNESCO, IMF, APEC, IAEA, ILO, and WHO can provide valuable insights and support for market entry strategies Understanding local consumer behavior and preferences is essential to successfully position bamboo furniture in this competitive market.

OECD Ministerial Conference

South Korea is committed to international cooperation, leveraging its growing economic strength to assist developing nations The country actively engages in programs facilitated by organizations such as the World Bank, IMF, and OECD, aimed at providing vital support to poorer countries.

The FDI incentives offered by the South Korean Government

Most of the FDI incentives offered by the South Korean Government are provided through:

- Tax support (corporate and income tax relief, acquisition tax and property tax relief, excluding customs duties)

Developing an effective international marketing plan for bamboo furniture products is crucial for successfully entering the Korean market This plan should focus on understanding consumer preferences, identifying competitive advantages, and leveraging sustainable practices Key strategies include market research to analyze trends, establishing partnerships with local distributors, and utilizing digital marketing to reach eco-conscious consumers Additionally, emphasizing the unique qualities of bamboo furniture, such as its durability and environmental benefits, can enhance brand appeal in Korea By implementing these strategies, businesses can effectively position their bamboo furniture products in the growing Korean market.

- Cash allowance (land purchase cost, land rental cost, employment/ education/ training allowance)

- Industrial location support (location support, price difference allowance, rental discount subsidy)

Industrial support services play a crucial role in high-tech industries, encompassing R&D services, manufacturing, travel services, and welfare facilities These services are strategically located in exclusive geographical areas, such as industrial complexes near ports or airports, which enhance the conditions for businesses engaged in foreign and international trade This proximity to key transport hubs facilitates efficient distribution and logistics for goods, promoting seamless trade operations.

Korea map in the world

(Source GobalEDGE , https://globaledge.msu.edu/countries/south-korea/statistics)

The Republic of Korea, situated in East Asia on the southern half of the Korean peninsula, shares its only land border with North Korea Predominantly surrounded by water, South Korea boasts a coastline of 2,413 kilometers along three seas Approximately 70% of its territory is mountainous, while the remaining 30% consists of plains.

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding the unique preferences and trends within the Korean consumer market Emphasizing the sustainability and eco-friendliness of bamboo furniture will resonate with environmentally conscious consumers in Korea Additionally, leveraging digital marketing strategies, such as social media and influencer partnerships, can enhance brand visibility and engagement Conducting thorough market research will help identify potential distribution channels and pricing strategies that align with local expectations By tailoring the marketing approach to the cultural nuances of Korea, businesses can effectively position their bamboo furniture products for success in this competitive market.

Korea's three coastlines provide a significant advantage for its seafood and marine economy, enhancing maritime trade opportunities The country's numerous rivers, streams, and a wealth of islands, particularly the renowned Jeju Island, contribute to its immense tourism potential, making Korea a globally recognized destination famous for its kimchi.

Korea's economic transformation, known as the "Legend of the Han River," remains a remarkable story As of 2021, South Korea boasts the 5th largest economy in Asia, following China, Japan, India, and Indonesia, and ranks 14th globally with a GDP (PPP) of 2.503 trillion USD Additionally, in 2017, the World Bank recognized Korea's business environment, ranking it 4th out of 190 countries in its Ease of Doing Business Index.

Digital electronics industry; Information and telecommunications industry; Semiconductor industry; Automotive industry; Steel industry; Shipbuilding industry; Textile industry; Raw material spare parts industry

GDP per capita (PPP) (USD per year) 41.300 42.300 42,700 41,900 48.309

GDP by Sector (2017) Agriculture (2,2 %) - Industry (38,7 %) - Service (59,1 %)

(2019) China 25%, USA 14%, Vietnam 9%, Hong Kong 6%, Japan 5%

Integrated circuits, automobiles and vehicle parts, refined petroleum, ships, office machinery

China 22%, USA 12%, Japan 9%, Germany (4,8%), Saudi Arabic

(2019) Crude oil, integrated circuits, natural gas, refined petroleum, coal

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This plan should focus on understanding local consumer preferences, identifying key distribution channels, and leveraging digital marketing strategies Emphasizing the sustainability and eco-friendliness of bamboo furniture can attract environmentally conscious consumers in Korea Additionally, conducting market research to analyze competitors and potential partnerships will enhance market entry effectiveness By aligning marketing efforts with cultural values and trends in Korea, bamboo furniture brands can establish a strong presence and drive sales growth.

Gini Index - family income distribution (2017) 35,5

Budget revenue and expenditure (Billion USD)

Economic sectors: Shipbuilding, Electronics, Automotive, Mining, Construction, Defense,

South Korea views Vietnam as a key partner in Southeast Asia, especially as an alternative to the saturated Chinese market Vietnam's socio-political stability, relatively low production costs, abundant labor force, and rich natural resources create a favorable environment for businesses Additionally, a stable supply network has been established, enhancing market opportunities for enterprises operating in the region.

The Vietnam-Korea Free Trade Agreement (KVFTA) that came into force at the end of

In 2015, significant strides were made in bolstering bilateral trade and investment relations between Vietnam and Korea, while also enhancing the effectiveness of the legal framework and trade policies This year marked a pivotal moment for economic restructuring, leading to improvements in the business environment and competitiveness of both economies.

Developing an international marketing plan for bamboo furniture products is essential for successfully entering the Korean market This plan should focus on understanding consumer preferences, identifying key distribution channels, and leveraging digital marketing strategies Emphasizing the sustainability and unique design of bamboo furniture can attract eco-conscious consumers in Korea Additionally, conducting market research to assess competition and pricing strategies will help position the products effectively Collaborating with local influencers and retailers can enhance brand visibility and credibility, ultimately driving sales in this promising market.

As of February 2022, South Korea stands as Vietnam's primary economic partner, being the largest foreign direct investor with over 75 billion USD in accumulated investment Additionally, South Korea ranks as Vietnam's third-largest trading partner, following China and the United States Conversely, Vietnam plays a crucial role in South Korea's southward strategy within the ASEAN region, with trade between the two nations constituting more than 40% of South Korea's total trade with ASEAN countries.

In the first two months of 2022, Vietnam and South Korea experienced a robust growth in bilateral trade, with a total turnover of 13.8 billion USD, marking a 19.03% increase compared to the same period in 2021, as reported by the Ministry of Industry and Trade Specifically, Vietnam's exports to South Korea reached 3.7 billion USD, reflecting a 15.7% rise, while imports from South Korea totaled 10.1 billion USD, showing a significant increase of 20.3%.

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This plan should focus on understanding local consumer preferences, leveraging sustainable and eco-friendly attributes of bamboo, and identifying effective distribution channels Additionally, incorporating digital marketing strategies and collaborating with local influencers can enhance brand visibility and appeal to environmentally conscious consumers in Korea By addressing these key areas, businesses can effectively position their bamboo furniture products in the competitive Korean market.

- Agreement on Technical and Economic Cooperation (February 1993) Investment Guarantee Agreement (May 1993)

- Agreement on Avoiding Double Taxation (May 1994) Cultural Agreement (August

- Vietnam - Korea Free Trade Agreement VKFTA (May 2015)

South Korea boasts a modern transportation system recognized globally for its diverse range of vehicles The country's transportation infrastructure, particularly in road, air, and sea traffic, is a significant strength With high-quality roads, bridges, and tunnels, South Korea ensures adherence to the best technical standards, making it a leader in efficient transportation.

South Korea's road transport system comprises primarily highways and national roads, among other types With a total road length of approximately 60,000 km, the country's infrastructure supports efficient transportation and connectivity.

The 428 km Seoul-Busan expressway significantly enhances connectivity across South Korea, allowing travel between the nation's two economic hubs in just one day This vital route has spurred concentrated economic development along the Seoul-Busan corridor, establishing Busan as the busiest seaport while reinforcing Seoul's status as the country's economic center Additionally, the expressway plays a crucial role in boosting Korea's export industry by lowering logistics costs and transportation times, ultimately reducing overall production expenses.

Korea's waterway system comprises three primary components: ferries, piers and ports, and commercial shipping, each offering unique advantages This network serves as one of the world's busiest maritime routes, bolstering the country's prominent shipbuilding industry.

Korean phone usage rate based on population

On average, Korean citizens spend 5 hours and 37 minutes on the internet every day, with

2 hours and 51 minutes watching videos (broadcast and online) and 1 hour and 8 minutes using social networks

In South Korea, online video consumption has overtaken traditional TV, with over half of viewing occurring on mobile devices Research indicates that mobile viewers are 20 times more likely to be distracted while watching videos compared to television, yet they show a greater tendency to seek product information after viewing mobile ads.

Developing an international marketing plan for bamboo furniture products is essential for successfully entering the Korean market This plan should focus on understanding consumer preferences, identifying target demographics, and leveraging the eco-friendly appeal of bamboo furniture Additionally, establishing partnerships with local distributors and utilizing digital marketing strategies can enhance brand visibility It is crucial to adapt marketing messages to resonate with Korean cultural values and trends, ensuring effective communication and engagement with potential customers By implementing these strategies, businesses can effectively penetrate the Korean market and promote sustainable furniture solutions.

The Most Popular Social Networking Platforms in Korea

According to the Most-used Social Media Platforms ranking, Korea's most used social media platforms are Youtube, with 85.9%, followed by KakaoTalk (80.1%), Instagram (57.5%), and Facebook (57.5%) 55.4%.

Most-used social media platforms in Korea

2.5 Industry competitors 2.5.1 Market share of furniture businesses in South Korea

Furniture Market share in Korea

A February 2022 survey of South Korean consumers revealed that Acebed was the most preferred furniture brand, capturing 14.9% of the responses Close behind were Hanssem and IKEA, with 13.6% and 12.9% of respondents favoring these brands, respectively.

Developing an international marketing plan for bamboo furniture products aimed at entering the Korean market involves several strategic steps First, it's essential to conduct thorough market research to understand consumer preferences and trends in South Korea Next, identifying potential distribution channels and partnerships will be crucial for effective market penetration Additionally, creating a strong brand message that highlights the sustainability and aesthetic appeal of bamboo furniture can attract environmentally conscious consumers Finally, leveraging digital marketing strategies, including social media and search engine optimization, will enhance visibility and engagement with the target audience in Korea.

The data indicates a highly competitive market where no single business holds more than 30% market share To succeed in this environment, it is crucial to focus on capturing market share and enhancing brand awareness.

With over 40 years of expertise in designing and manufacturing home furniture, Livart stands out for its exceptional offerings The company specializes in high-quality home and kitchen furniture, as well as premium wooden doors, ideal for expansive areas such as luxury apartments and complex buildings.

Recent market share and sales:

Hyundai Livart's sales in the first quarter were 368.7 billion won and operating profit was 2.9 billion won Although sales increased 11.4% year-on-year, operating profit fell by 70.3%

MUJI, a popular Japanese lifestyle brand among the MZ generation, is known for its clean and practical products Beyond fashion and food, MUJI also offers a range of wooden and bamboo furniture, appealing to consumers seeking simplicity and functionality.

Recent market share and sales:

Revenue from 137.8 billion won in 2018 fell to 124.3 billion won after the No Japan event in 2019 and halved to 62.7 billion won in 2020

IKEA Korea, the local arm of the global furniture giant, launched its operations in 2014 with the opening of the IKEA Gwangmyeong branch Today, the company boasts four physical stores, including IKEA Goyang, Giheung, and Dongbusan, alongside a robust e-commerce platform to serve its customers.

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This plan should focus on understanding consumer preferences, identifying key competitors, and leveraging the unique sustainability and aesthetic appeal of bamboo furniture Additionally, effective marketing strategies, including digital marketing and partnerships with local retailers, will enhance brand visibility and attract eco-conscious consumers in Korea Emphasizing the environmental benefits and quality of bamboo furniture can position the products favorably in a growing market that values sustainability.

Recent market share and sales:

Sales in fiscal year 2020 (September 2019 to August 2020) reached 663.4 billion won, up 32.6% year-on-year But 2021 is different IKEA Korea's sales for fiscal year 2021 (last September

- August this year) were 684.6 billion won, up only 3.4% year-on-year

Hanssem always held the No 1 market share from 1986 to 2021, then held the

In 2022, the company secured the No 2 position, yet it has consistently maintained the No 1 market share in kitchen furniture for several years Recognized as the top company in the kitchen furniture sector by the Korea Industrial Brand Strength Index (K-BPI) for 17 consecutive years, it continues to set industry standards.

Hanssem currently has a network of 35 Rehouse standard stores nationwide The plan is to increase that number to 50 this year

Recent market share and sales:

Hanssem is set to enhance its furniture sales and remodeling business by expanding its network of offline standard stores With IMM Private Equity (IMM PE) now the largest shareholder and actively strengthening its remodeling operations, this expansion is anticipated to drive significant growth in sales.

2.6 Potential of new businesses entering the industry

The rising purchasing power and demand for this item in Korea have led to the emergence of numerous potential competitors, particularly in craft villages These competitors not only have a deep understanding of their own culture but also pose significant challenges for Sbamboo in maintaining its market share.

Sbamboo is entering a new market for the first time and currently lacks suppliers, necessitating the search for a reputable service provider to establish a solid foundation for our operations.

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on leveraging the strengths of local distributors while also establishing favorable conditions for collaboration Expanding the supply sources and engaging in careful negotiations will be crucial in achieving desired outcomes and ensuring a competitive edge in the market.

The significant differentiation of its products from competitors, coupled with limited design diversity in bamboo and bamboo products, makes price and quality key factors for customer interest Customers now have access to a wide range of information sources to aid their purchasing decisions Beyond product quality, they also prioritize post-purchase policies, including returns and exchanges for defective items, resulting in high customer bargaining power.

Koreans exhibit a strong preference for domestic products, driven by high national pride, with only 1.9% favoring foreign goods While 54.9% prioritize quality in their purchasing decisions, 43.1% opt for local products simply due to their domestic origin A significant 80.5% believe that Korean companies operating internationally contribute more to the national economy than foreign businesses Additionally, Koreans are drawn to products with diverse designs and vibrant colors, which enhances their shopping enthusiasm This presents a promising opportunity for bamboo products, known for their superior impact resistance compared to wooden furniture, and when treated, bamboo furniture offers durability and protection against termites.

In South Korea, customers are highly discerning, requiring products to possess authoritative licenses and inspection documents from competent authorities to ensure consumer trust A robust consumer association actively safeguards interests, reinforcing the importance of compliance and quality Consequently, any negative media coverage can lead to immediate boycotts, highlighting the critical need for brands to maintain a positive reputation to succeed in this market.

Koreans do not calculate the details and details: the potential because the price of the product will not affect the purchase decision of customers much

2.9 Risks and threats from substitute products

Positioning Map

Developing an international marketing plan for bamboo furniture products aimed at entering the Korean market is essential for successful market penetration This plan should focus on understanding consumer preferences, identifying key competitors, and leveraging the unique benefits of bamboo furniture, such as sustainability and aesthetic appeal Additionally, effective strategies should include targeted advertising, partnerships with local retailers, and participation in trade shows to enhance brand visibility By tailoring the marketing approach to the cultural nuances of the Korean market, businesses can establish a strong foothold and drive sales growth in this emerging segment.

In the April 2020 National Assembly elections, President Moon Jae-in's Democratic Party secured a majority, bolstered by widespread public approval for its handling of the COVID-19 pandemic This strong mandate enables the left-leaning party to advance its reform initiatives ahead of the 2022 presidential election, focusing on critical issues such as unemployment and the restructuring of chaebols to diminish corporate dominance in the economy.

The reform of chaebols has contributed to international investors' peace of mind in terms of transparency and information, but also caused some political conflicts

Global tensions are escalating due to ongoing conflicts, including the Russia-Ukraine war and China's increasing assertiveness towards Taiwan Notably, South Korea remains in a state of division from North Korea, with the demilitarized zone symbolizing this enduring separation.

In South Korea, it is common for families to eat while sitting on the floor rather than using chairs, reflecting a cultural preference for traditional practices Typically, a standard South Korean family consists of multiple generations living together, emphasizing the importance of familial bonds, similar to other Asian cultures This strong sense of family cohesion is complemented by the use of traditional bamboo and rattan products, which have become integral to daily life in Korea, distinguishing it from customs in neighboring Vietnam.

In Vietnam, if you write in red ink to decorate items, it will be considered lucky, in South Korea this is taboo

5.3 Exchange risk South Korea is highly rated in two categories of ratings:

Fluctuations in the economic and political landscape can create volatility that impacts business payment behaviors Despite this, a stable business environment can still lead to occasional challenges for companies On average, the likelihood of defaults among businesses remains at an acceptable level.

The business environment is highly favorable, characterized by readily accessible and reliable corporate financial information Effective debt collection practices enhance the overall institutional quality, ensuring that transactions between companies occur seamlessly within an A1 rated framework.

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This plan should focus on understanding consumer preferences, identifying target demographics, and leveraging the growing demand for sustainable and eco-friendly furniture Additionally, incorporating effective branding strategies and utilizing digital marketing channels will enhance visibility and engagement Researching local competitors and establishing partnerships with local retailers can further strengthen market entry efforts Emphasizing the unique qualities of bamboo furniture, such as durability and environmental benefits, will resonate with Korean consumers seeking innovative and sustainable home solutions.

With a high rating, it is completely safe to believe that the value of South Korea's currency is a strong currency and a high rate of stability in the world

Conducting business in South Korea requires adherence to local regulations and an understanding of currency values, particularly as all cashew nut transactions are conducted in South Korean Won Consequently, global and national issues significantly impact the exchange rate between the Won and the Vietnamese Dong (VND).

Since 2020, companies exporting wood and wood products to Korea are required to declare the origin of their imported timber to the Forestry Administration prior to customs clearance, ensuring that the wood has a legal and verified origin.

Conducting business in any country involves adhering to local laws, regulations, and tax obligations Under the VKFTA agreement, South Korea has pledged to eliminate tariffs on up to 64 wood product lines for Vietnam.

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This plan should focus on understanding local consumer preferences, identifying key distribution channels, and leveraging digital marketing strategies Emphasizing the sustainability and unique qualities of bamboo furniture will appeal to environmentally conscious consumers in Korea Additionally, conducting market research to analyze competition and potential partnerships can enhance market entry strategies By aligning marketing efforts with cultural values and trends in Korea, bamboo furniture brands can effectively establish a strong presence in this growing market.

6.1 Product Type of product: Durable goods Classification product: Shopping goods

Multi-functional furniture, convenient, high sophistication The design is both classic and modern like a work of art

• Furniture products for the living room and kitchen include table, chair, bed, table lamp, picture frame, flowerpot, carpet, tray,

• Main color: white, black, brown, beige

• Raw materials: bamboo, rattan, quality assurance from Vietnam

Sbamboo's products stand out from traditional Korean handicrafts due to their versatility, incorporating multiple features into a single device This innovative approach allows customers to maximize both space and functionality, exemplified by smart beds that transform into sofas and shelves that double as desks Given the high cost of land in South Korea, achieving a spacious and comfortable living environment is a significant challenge, making these multifunctional products a valuable solution.

Sbamboo's furniture, made from bamboo, rattan, and cork, addresses Koreans' concerns about weight and durability, offering a compact design that meets international quality standards.

To successfully enter the Korean market, developing a comprehensive international marketing plan for bamboo furniture products is essential This plan should focus on understanding the unique preferences and cultural nuances of Korean consumers Emphasizing the sustainability and eco-friendliness of bamboo furniture can resonate well with the growing demand for environmentally conscious products in Korea Additionally, leveraging digital marketing strategies and social media platforms will enhance brand visibility and engagement Collaborating with local distributors and retailers can facilitate market entry and provide valuable insights into consumer behavior Ultimately, a well-structured marketing approach will position bamboo furniture as a desirable choice in the competitive Korean market.

Sbamboo's interior not only focuses on versatility but also focuses on meticulousness and sophistication in every detail

The design of SBamboo products blends innovative and unique styles while preserving traditional Korean cultural elements, ensuring they remain engaging and fresh Each product is crafted as a distinct work of art, showcasing its own individuality and charm.

Product line and product mix:

Furniture from bamboo and rattan Sbamboo

• Furniture and decorations from bamboo

• Furniture and decorations from cork Kitchen furniture

• Furniture and decorations from bamboo

• Furniture and decorations from cork

Furniture distributor in korea

From Vietnam to Korea: using water transport, specifically the ship of Best Logistics

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding local consumer preferences, leveraging the eco-friendly appeal of bamboo, and identifying effective distribution channels Additionally, incorporating SEO strategies will enhance online visibility and attract potential customers By emphasizing the unique benefits of bamboo furniture, such as sustainability and aesthetic appeal, businesses can effectively position themselves in the competitive Korean market.

• Fast delivery time and exact deadlines

• Can be transported from Ho Chi Minh City and Hanoi to 192 countries around the world

• Update orders continuously, locate parcels by GPS, follow orders

• High security of data management system

• Preferential prices save up to 50% compared to services of other units

From Korean port to agent: As the most popular and optimal form of road transport in

Korea, SBamboo will choose JBG Logistics, a logistics company in Busan that is very convenient for SBamboo to transport goods

After the production process, the goods are transported from the warehouse of Southeast Asia Handicrafts Import and Export Co., Ltd in Hanoi to Hai Phong seaport

Goods will be stored at the warehouse of Best Logistics company

Cargo transportation from Hai Phong seaport to Busan port is vital, as Busan is not only the largest port in South Korea but also ranks among the largest cargo ports globally, handling 66% of the country's total import and export volume.

Hire JBG Logistics for efficient transportation of goods to SBamboo's warehouse in Busan, ensuring seamless distribution to retail stores nationwide.

Using a third-party system because the warehouse method of storing inventory helps SBamboo save costs

The warehouse system in Busan offers a cost-effective alternative compared to other cities, with a quieter environment than the bustling atmosphere of Seoul Its central location enhances transportation convenience and proximity to the seaport, allowing SBamboo to significantly reduce transportation costs.

An order processing system efficiently manages the workflow of sorting, packing, and shipping orders by collecting data from customer service representatives or directly from customers This system stores the information in a centralized database and seamlessly communicates order details to both the accounting and shipping departments, ensuring streamlined operations and improved customer satisfaction.

Compare it to competitors’ distribution

Sbamboo aims to differentiate itself in the market by developing a distribution strategy that prioritizes accessibility and affordability, ensuring that high-quality products are available to consumers beyond major cities like Seoul, where competitors such as Hyundai and Ikea predominantly focus their efforts.

To successfully enter the Korean market, it is essential to develop a comprehensive international marketing plan for bamboo furniture products This plan should focus on understanding consumer preferences, identifying key distribution channels, and leveraging digital marketing strategies to enhance brand visibility Additionally, emphasizing the eco-friendly and sustainable aspects of bamboo furniture can attract environmentally conscious consumers in Korea Collaborating with local influencers and participating in trade shows will further strengthen market presence and foster customer engagement By addressing these critical components, businesses can effectively position their bamboo furniture in the competitive Korean market.

• Create Sbamboo brand awareness to target customers

• Show customers the benefits of using the product

• The difference between Sbamboo products with other furniture on the market

• Drive purchase intent and customer experience

• Increase awareness of Sbamboo furniture products by 70% in 3 years

• 25% increase in intention to buy Sbamboo furniture in 2 years

• Increase 50% customer satisfaction on Sbamboo furniture products in 2 years

• When thinking of the Sbamboo brand, customers will associate the image of closeness, warmth, and a comfortable lifestyle of the family

• Product features: multi-purpose furniture products made from main materials are bamboo, rattan and cork

• Sticking with life: convenience, modernity

Sbamboo has chosen to advertise through both online and offline channels, with a significant emphasis on online platforms South Koreans spend an average of 5 hours and 37 minutes online daily, dedicating 2 hours and 51 minutes to watching videos and 1 hour and 8 minutes to social media (Hootsuite, 2021) Online video consumption in South Korea has outpaced traditional television, with over half of this activity occurring on mobile devices In response to the rising video viewing rates, Sbamboo is launching advertising videos on YouTube, KakaoTalk, and Facebook.

Offline advertising: outdoor led screen system, posters

To successfully enter the Korean market with bamboo furniture products, it is essential to develop a comprehensive international marketing plan This plan should focus on understanding local consumer preferences, leveraging sustainable and eco-friendly attributes of bamboo, and identifying effective distribution channels Additionally, incorporating digital marketing strategies, such as social media engagement and targeted advertising, will enhance brand visibility Collaborating with local influencers and participating in trade shows can further establish a strong market presence Ultimately, a well-researched and adaptable marketing strategy will be crucial for capturing the interest of Korean consumers and achieving long-term success.

The Stage of Pushing Action and

Offline advertising: billboard, TV Online advertising

- Ads displayed on Neva and Daum ã

Create small booths in major Korean shopping fairs to promote products, such as:

Positioning product standees prominently outside the store enhances visibility and accessibility for customers Additionally, showcasing a video of multi-purpose furniture in this prime location allows potential buyers to gain a clearer understanding of the product's features and benefits.

SBamboo offers convenient and artistic interior solutions for your home, providing a high-class lifestyle experience Our billboard ads and posters, prominently displayed in high-traffic locations across Korea, effectively communicate this message.

SBamboo utilizes LED screen advertising to showcase a 15-second clip featuring an individual thriving in a compact 30m² home, demonstrating how multi-purpose furniture enhances convenience and comfort These advertisements are strategically positioned in front of the Sbamboo store, at busy street intersections, and on prominent buildings, maximizing visibility and engagement.

SBamboo will host product experience sessions in smaller cities like Yongin, Suwon, Seongnam, and Namyangju, allowing customers to explore the benefits of multi-purpose furniture made from bamboo, rattan, and cork, thereby enhancing brand awareness.

SBamboo is set to launch a TV advertisement featuring the theme "Live Your Way," conveying the message that regardless of your location, embracing the art of living fully leads to a fulfilling life.

In addition to mobile phones, South Koreans widely embrace various new technologies, with over 92% of households equipped with computers Notably, South Korea boasts the highest rate of high-speed internet access globally, as more than 80% of homes are connected to this fast and reliable service.

In which, 97% of Koreans are internet users, along with 45.79% of active social network users, accounting for 89.3% of the total population

Evaluation and selection of online advertising channels: