South Korean Companies Try to Expand Into the US Market
I just don’t see many of the South Korean chain stores ever making it big outside of Korean-American communities. Can anyone picture Paris Baguette in major cities when it would be competing against someone like Panera Bread?. Can anyone think of a Korean chain that could make it big in the US?:
Korean firms are scrambling to set up shop in New York City as a litmus test for how ready they are for the global market. With the growing interest in Korean culture in the U.S., they feel this may be the right time to make inroads into the market.
Cosmetics firms are leading the trend. Amore Pacific opened its store at Bloomingdale’s department store in Manhattan last week, a first for a Korean cosmetic firm.
“To succeed in the global market, you first need to advance into New York, the trend-setting city,” said a company spokesman. Amore Pacific opened its first New York store in 2003 and now operates 26 in the city.
Laneige also opened an outlet in a big supermarket in the U.S. last year. Tonymoly started in New York in August last year and already operates six stores there. [Chosun Ilbo]
You can read more at the link, but I think a major luxury hotel brand like Lotte has a chance of gaining some market share in major cities but that is about it. Cosmetics may have a chance of gaining some market share as well, but I think even that will be challenging.
GIKorea: “I think a major luxury hotel brand like Lotte has a chance of gaining some market share in major cities”
If the luxury hotels in Korea are still as good as they were 30 years ago, then I agree with you. American hotel companies have cheaped out so much over the past couple of decades that a chain of well-constructed, well-run hotels which provide full service without gouging customers or nickel-and-diming them could seriously put a dent in the luxury hotel market.
Paris Baguette has 43 stores in the US, including 7 stores in Manhattan alone. They just opened a new 7th store in Manhattan. They are also rolling out a new franchise business second half of this year, due to the stores being a smashing success in the US with good user reviews.
PXX you are right that PB has been able to expand in mostly large metropolitan areas. It will be interesting to see if they become a major national chain bakery like Panera Bread.
GI Korea, if PB can succeed in France (and last time I heard they are expanding there as well), then I wouldn’t write them off just yet.
Second store in Paris is opening, as the average number of customers in Paris, is three times the average number of customers in Korea. The French interviewed says the Korean style pastries are light, so anyone can have them at anytime.
https://www.youtube.com/watch?v=1h5vbS2mtcA
This goes to show you, even what may seem impossible could happen, with little bit of effort and a vision.