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[MK Opinion] To Further Develop Great Customer Services in Korea
During the first two months of 2016, the ECCK President Jean-Christophe Darbes will be making weekly contributions to Maekyung Business News opinion column. Each week, the Chamber will share the published article as well as its English translation.
Please click here to access President Darbes’ 5th article and read below for the English version:
To Further Develop Great Customer Services in Korea
A privilege I enjoy as the president of the European Chamber is that I learn about many different issues from various industries. Recently, I had a conversation with a colleague at a well-known European car company about the automotive market in Korea.
I asked how different Korean consumers are compared with buyers in other countries, and I heard interesting answers. In general, European consumers prefer cars designed for long travel while North Americans like vehicles that can drive both on- and off-road. Not surprisingly, Korean consumers prefer large sedans in conservative colours. This trend in Korea reflects the tendency for conspicuous consumption based on social status.
More interestingly, Korean consumers are keen on “services” or extra packages that make them feel special. For instance, my colleague’s company provides special packages such as the Concierge Services or the Airport Service by which customers are provided with a limousine to airport and maintenance services while they are travelling overseas. Unlike European or American consumers, it is also noticeable that Koreans prefer having optional devices and convenient features by default. Moreover, the company
tries hard to be prepared for any questions about products and requests for pre-purchase driving experiences. Thanks to their continuous efforts to upgrade customer services, my colleague’s company recorded a double-digit growth last year.
The excellent customer service is a distinctively Korean advantage. Korean consumers are quite demanding and the quality of service is meant to be high under such circumstances. As the Korean market is getting mature, consumer preference for great service will continue to grow. I have been already impressed by the high standard of customer service in Korea. But to turn this feature into a competitive edge, there are a few things to be considered.
Most importantly, it should be recognized that the Korean market is not large enough to create the economy of scale. The biggest dilemma foreign investors face is that the Korean market is too attractive not to invest but too small to make a large investment. Hence, any Korea-specific services or strategies entail extra costs, often incorporated in the consumer price.
It is time Korea should think about creating demand, not only by boosting domestic consumption but also by developing ways of expanding its service advantages beyond the borders.
[MK Opinion] To Further Develop Great Customer Services in Korea
During the first two months of 2016, the ECCK President Jean-Christophe Darbes will be making weekly contributions to Maekyung Business News opinion column. Each week, the Chamber will share the published article as well as its English translation.
Please click here to access President Darbes’ 5th article and read below for the English version:
To Further Develop Great Customer Services in Korea
A privilege I enjoy as the president of the European Chamber is that I learn about many different issues from various industries. Recently, I had a conversation with a colleague at a well-known European car company about the automotive market in Korea.
I asked how different Korean consumers are compared with buyers in other countries, and I heard interesting answers. In general, European consumers prefer cars designed for long travel while North Americans like vehicles that can drive both on- and off-road. Not surprisingly, Korean consumers prefer large sedans in conservative colours. This trend in Korea reflects the tendency for conspicuous consumption based on social status.
More interestingly, Korean consumers are keen on “services” or extra packages that make them feel special. For instance, my colleague’s company provides special packages such as the Concierge Services or the Airport Service by which customers are provided with a limousine to airport and maintenance services while they are travelling overseas. Unlike European or American consumers, it is also noticeable that Koreans prefer having optional devices and convenient features by default. Moreover, the company
tries hard to be prepared for any questions about products and requests for pre-purchase driving experiences. Thanks to their continuous efforts to upgrade customer services, my colleague’s company recorded a double-digit growth last year.
The excellent customer service is a distinctively Korean advantage. Korean consumers are quite demanding and the quality of service is meant to be high under such circumstances. As the Korean market is getting mature, consumer preference for great service will continue to grow. I have been already impressed by the high standard of customer service in Korea. But to turn this feature into a competitive edge, there are a few things to be considered.
Most importantly, it should be recognized that the Korean market is not large enough to create the economy of scale. The biggest dilemma foreign investors face is that the Korean market is too attractive not to invest but too small to make a large investment. Hence, any Korea-specific services or strategies entail extra costs, often incorporated in the consumer price.
It is time Korea should think about creating demand, not only by boosting domestic consumption but also by developing ways of expanding its service advantages beyond the borders.