Why Are Korean Products So Popular? How Can You Make Money By Sourcing From Korea?
Updated: Feb 9
In recent years, importing products from Korea and shipping them across the world has become a popular business. Korean products are becoming the most used products in the market. Especially in Asian countries, you can find made in Korea products everywhere. If you look around in your surroundings, you will easily find one or two products either made in Korea or assembled in Korea. There are several reasons for the popularity of Korean products. A few of them are discussed below.
1. High-Quality Products
The whole world admires that Korean products are of very high quality. If you search the internet, you may see some people talking about Korean products' poor quality. Well, their claims are totally false. Have you ever questioned yourself why Samsung manufactures its mobile phones and devices in Korea? It surely can't be because the Korean products are of low quality. Korea surely has the infrastructure to produce high-quality products.
2. Mass Production
The Koran industry has mass production capabilities. Especially if you talk about beauty, cosmetics, and clothing industry, Korea is the world's leading giant right now. Korea manufactures these products in large quantities, which makes them a lot cheaper. It provided you with an opportunity for business since you can acquire these products from Korean manufacturers at very low prices and then sell them in your country with high-profit margins.
3. Masters Of Design
There is no doubt that the product design and packaging is the first thing that attracts customers. There are plenty of customers that make purchase decisions based on the designs of the products. If you are running a business and want your products to stand out from the rest of your competitors, it is crucial to invest in the product designs and packaging. People love to import products from Korea because they are experts in designs and packaging. Their engineers can even design products for you based on your custom specifications. Another plus point is that, no matter what the design is, its quality is always consistent.
4. Accessible Materials
Manufacturing materials are readily available in Korea at very low prices. This reduces the cost of manufacturing, ultimately reducing the cost of products. For this reason, Korea becomes the best place to import products like cosmetics, beauty, textiles, vehicles, mineral fuel oils, steel, computers, optical and medical equipment, and organic chemicals, etc. Korea has a state of the art technology and machines to manufacture the best quality products.
5. Labour Laws And Wages
The labour laws of Korea are not very strict. If you compare Korean workers' salaries and wages with other countries in the world, you will find out that the wages of Korean workers are considerably less compared to other countries. Labour is cheap in Korea, which automatically reduces the production cost and cost of imported products.
These are why Korean products are so popular globally, and importing Koran products has become a booming business in today's economy. Another best thing is that importing products from Korea is pretty simple. You don't require to travel to Korea or need to learn the Korean language. Many sourcing companies like KRSOURCING can help you in this matter and can break several barriers for you.
How Can You Make Money By Sourcing From Korea?
When you are looking to import products from Korea, you may be overwhelmed with the whole process. Korea is a large manufacturer of a variety of products, and there are different manufacturers. Also, there could be a language barrier.
However, it doesn't matter if you are an expert entrepreneur or just a beginner; you can learn how you can source from Korea and start making profits. If you want to source from Korea, then you need to choose the right strategy and avoid common mistakes that most people do. This article will discuss some steps by following which you can easily start sourcing from Korea and make profits.
1. Research the Market
The first step to start sourcing from Korea is to do online research. It is a crucial step, and you cannot ignore this because people who are sourcing products from Korea and then selling them locally or online are direct competitors of each other. You have to choose a specific niche in which there is less competition. If you just jump into a high competition niche, then you will struggle to survive in the market, and it will be difficult for you to maintain the profit margins.
Related: 7 Korean Products that Make Profits
When you search for products, the first thing you should look for is to understand what the market wants. You can check different websites of B2B marketplaces and analyze their top 100 products. If you find a product that you feel fits the criteria, the next step is to select 2 or 3 products you feel you know about.
2. Contact A Korean Manufacturer
Most people make mistakes in the first step, and they fail miserably. Once you have selected a product by carefully analyzing the market, the next step is to contact a Korean manufacturer. There are several B2B websites that you can visit and find different Koran manufacturers there. Alternatively, you can get help from different sourcing agencies that solely work for this purpose. All you have to do is send an email to the manufacturer to tell them your requirements and ask them for a quote. If your email is well-written, you will definitely get a reply, and in this way, you can start a conversation.
When you are contacting a manufacturer or factory, you should sound very professional from the start. It would help if you left a gesture in your conversation, and your manufacturer should feel like you are serious and plan to go big from the start. Everyday Korean manufacturers receive tons of emails and messages, so it is essential to write a stand-out email.
You should always contact 4- 5 manufacturers and then see who gives you the best quote. Once you have the quote now, it is time to negotiate with them. They will expect you to order in large quantities, but it is always recommended to start with a small quantity to test the quality of products. You can go to 50 units in the beginning, and for this, you will have to negotiate with them.
4. Ask For Samples
Once you have finalized the products or a factory, now it is time to ask them for samples. You can order 5 to 10 units initially. Ask them where you can send payments for sample units, and you can order them on your home address or your warehouse. When the sample units arrive, assess them thoroughly for their quality and defects. If you find any faults in the unites, you can simply ask the manufacturer to replace those units, or you can potentially check other factories until you find the right one.
5. Posting And Advertising Products
Once you have agreed upon a deal with a manufacturer, the next step is to create your product posting and make your product available online to buy. For this purpose, you can set up and e-commerce website and list your products there. It is because now we live in a digital world where people spend most of their time on the internet, so if you start a business on the internet, there are higher chances of success than the offline business. The reason behind this is that you can easily reach your target audience by running advertisements across various platforms. Various social media platforms provide you with the facility to run ads and advertise your products. You can choose any medium that you like and create your brand awareness by using various online advertising tools.
6. Analyze Your Sales
Until now, you have selected your products, listed them online, and advertised them. Now all you have to do is to sit back and analyze your sales. Analyze the cost that you spent on purchasing, advertising, and listing products. Then divide the cost by the number of sales and calculate the ROI and profit margins. In this way, you can easily scale your business and take it to the next level.
If your ROI is good and you are earning more than you spent, it means that you are going in the right direction, and it is time to invest more to increase the profit margins. If your product is selling well and giving you a good profit, you can easily spend more on that product and order it in larger batches to cost you even lesser. In this way, you can increase your profit margins and set up a well-established business.
These are the steps you can follow if you want to start a sourcing business from Korea and profit by importing products and reselling them. All you have to do is to follow these simple steps and keep going. If you don't get success the first time, then you can try again with another product. You may need to do trial and error on different products until you find the right one. Once you hit the right spot, then you will be making a good profit every day.