International Business Management HCMC UNIVERSITY OF TECHNOLOGY ASSIGNMENT REPORT International Business Management Lecturer: Đậu Xuân Trường Class: CC02 GROUP Group member Phan Phúc Phi-1752410 Đỗ Tuấn Khang -2052122 Bùi Đức Khang -1952756 Võ Đặng Anh Thư-1952484 Đỗ Quốc Khánh-1952070 0 International Business Management Table of Contents Types of Method Page Catalog I.INTRODUCTION II.BACKGROUND III.MARKET EVALUATION 1:General factors .3 2:Social factors and their influences on lifestyle and business 3/ Economic factors: 4/ Political and legal factors: .7 IV.STRATEGIC PLANNING 1:Industry analysis 2:Competitive environment 3: Labor 10 4: Supply chain 11 5: Financial system 12 V.MARKET ENTRY ISSUES 12 1:Rules and regulations 12 2: Brand equity 13 VI.TARGET MARKET AND POSITIONING 13 1: Target market 13 2: Positioning 13 VII.INTERNATIONALIZATION STRATEGY .13 VIII.MARKET ENTRY STRATEGY 14 IX.INTERNATIONAL BUSINESS FUNCTION STRATEGIES 14 X.WHAT MAKES COCOON VIETNAM UNIQUE AMONG OTHER COSMETIC BRANDS? 16 XI: CONCLUSION 16 XIII: REFERENCE 17 0 International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International Business Management I.INTRODUCTION It is estimated that the Vietnamese cosmetic market is worth 2.35 billion USD in 2018, of which domestic brands account for 10% with a few brands of Saigon, Thorakao, etc about imported brands and products such as Korea (35%), Singapore (15%), Japan (11%), France (6%), US (6%), according to UN-Comtrade data Cocoon is one of the top pure Vietnamese products in the cosmetic industry After many years of development in Vietnam, Cocoon wants to develop in foreign markets and Korea is the country of their choice.In this report will propose a plan for the company to be able to successfully expand into new markets II.BACKGROUND The Cocoon Original Vietnam is a natural vegan Vietnamese cosmetic brand.Cocoon belongs to Nature Story Cosmetic LTD( limited liability company ) represented by Mr Nguyen Ngoc Bao Cocoon products are completely natural and are committed to not testing on animals years ago, Cocoon officially launched to users with two main products: squash extract and pomelo peel extract, which specializes in treating acne and fading dark spots At this time, Cocoon began to receive a lot of acceptance from consumers But not stopping there, after years of investment in research and product improvement, Cocoon has officially returned and successfully conquered Vietnamese consumers in a new professional look with outstanding quality On 9/2020, Cocoon was certified “not tested on animals and vegan” by the global animal welfare organization PETA In 11/2020, Cocoon officially became the first Vietnamese brand to be approved by The Leaping Bunny program of Cruelty-Free International – one of the most famous programs to ensure the production process is not tested on animals, in its commitment to not testing on animals III.MARKET EVALUATION 1:General factors First we consider countries: South Korea, Australia and Japan Below are some cosmetics industry data in 2020 for those countries: 0 International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International Business Management Criteria Japan South Korea Australia Market size (Billion USD) 1.76 6.17 3.73 Import tariff (%) 5.8 10 10 Average spending on purchase per month (USD) 23.93 27.16 14.89 From those criteria we can see that South Korea is the most potential market for our products to grow One more factor is that the distance from Vietnam to Korea is nearer than other countries so the transportation cost from Vietnam to South Korea is cheaper That’s all the reasons why we chose South Korea to enter the market 2:Social factors and their influences on lifestyle and business - Koreans live very optimistically, unlike the melancholy Korean films we often see, you will see very interesting and funny personalities of Koreans That is the lifestyle of enjoyment, Korean society today is modern and life is much more comfortable than before, Koreans live more liberally, wear more beautiful makeup They think that being more beautiful will be more successful in life - Korean consumers are not loyal to brands, they tend to be tech-savvy and concerned with brand names As a matter of fact, more than 98% of South Korean households access the World Wide Web daily and over 85% of the Korean population owns a smartphone Online shopping is very democratized The use of the internet also makes it possible to search for information on a product before picking it up in a store Social networks are used to explore, review products and buy Influencers and testers of known products are influential in consumer decision making Consumers are increasingly less attracted to domestic products while purchases of foreign products are growing - Though influenced by other Asian cultures, Korean art has always managed to maintain a uniquely Korean quality, namely a tranquil and relaxed attitude, quite distinct from the elaborate and massive forms of China or the highly delicate style of Japanese art - In Korea, the importance of a relationship can be expressed through gift giving which is always welcomed Gifts should always be wrapped nicely in red or yellow paper, as these are royal colors Building relationships is an essential part of doing business in Korea Relationships are developed through informal social gatherings and generally involve a considerable amount of eating and drinking Such gatherings also present the opportunity for both sides to discuss business in more relaxed and friendly surroundings, including over dinner 0 International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International Business Management 3/ Economic factors: - Population + Actual count: about 51.32 million people + Age distribution: + Average age of the Korean: 44 – 44.5 years old + Density of population: 528 people per square kilometer + Target age group of customers: 15-35-year-old age group + Urban people portion: over 81% country population + “Natural” is not only a trend in the cosmetic industry for years recently but also a major core value of products of Cocoon In population factor, all the data shows that Korea is a market which has more potential for development than Vietnam based on the demand factor of markets Cocoon organization focuses on the 15-35-year-old age group of citizens The real size of the target Korea market is 36.8 million people As a small and newbie brand, 4% is a dream goal to achieve for Cocoon - Income + GDP: 1.660 trillion USD + GDP per capita: 32,346 USD + Family income: 19,081.079 USD + The average income of Korea is about 3,158 USD / month (top highest average salary in Asia) + Consumption expenditure by product category in 2020 show that spending in “health” products almost reached 7%, which is an impressive rate for the cosmetic industry though it is not a priority of a country Table Consumption expenditure of Korean by product category in 2020 Housing, water, electricity, gas, and other 20.01 0 International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International Business Management fuels Food and non-alcoholic beverages 16.01 Miscellaneous goods and services 14.19 Transport 12.22 Recreation and culture 7.43 Restaurants and hotels 7.036 Health 6.81 Clothing and footwear 5.03 Education 4.25 Furnishings, households’ equipment, and routine maintenance of the house 3.59 Communications 3.01 Alcoholic beverages, tobacco, and narcotics 2.52 According to the data above, the buying power of the South Koreans is high that people can easily afford types of products with high price Moreover, an impressive portion of Health - care products gives a detailed look of how influential cosmetics products affect people's expenditure pattern Infrastructure: Transportation & Communication system has been developing rapidly 0 International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International Business Management 12 is manpower It can be seen from these diagrams that the workforce of Korea is large and cheap and also the hourly compensation cost just about 9.160 won ~ 7.53 USD, which is an advantage to reduce the cost of manufacturing and easier entry into the workforce allow a new foreign business to compete with local businesses Beside that, labor is being increasingly recognized for its intelligence, ability to learn, literacy and capacity for hard work It has one of the world's highest-educated labour forces among OECD countries 4: Supply chain Figure: Global supply chain management system South Korea has a strong infrastructure with a lot of paved roads, strong telecommunications, landline subscriptions making it easier to connect and support its manufacturing supply chain and shipping Additionally, the government encourages investment in manufacturing technologies, especially for high-tech and automotive industries Beside that, Korea also enjoys a reputation for excellence in cosmetics and high-end skin care products However, the inflation rate of Korea stays high hovering near a decade for about 2.5% compared to previous year which is the fastest pace of price rising since 2011 and a sharper increase than projected by the BOK 5: Financial system 0 International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International Business Management 13 Over the past five years, the South Korean economy has followed a track similar to those of many other countries: slowing growth from 2017 through 2019, negative growth in 2020, and recovery in 2021 During the same period, levels of economic freedom have remained largely unchanged V.MARKET ENTRY ISSUES 1:Rules and regulations When importing to Korea, the products need approval from South Korea Pharmaceutical Traders Association (KPTA) being responsible for issuing importing cosmetic approval and supervising cosmetic trading Then a complex evaluation and approval procedure by Ministry of Food and Drug Safety (MFDS) before conducting and marketing 2: Brand equity The cosmetics market of Korea is dominated by local business, leading to highly competitive environment and requiring the new foreign business to post news, information about promotions, and communicate with their audience on a daily basis widely to make impression with new customers and build brand equity, making cost increasingly Additionally, selling on e-commerce platforms of Korea is also an essential tool for promoting speedy sales VI.TARGET MARKET AND POSITIONING 1: Target market Cocoon creates the same message about the benefits of using vegan products to its whole audience In order to appeal to such a large group of people, this usually means the message is more general It is a B2C and B2B business looking to target eco-friendly, vegan beauty-loving, health-conscious individuals with acne treatment and cleansing purposes as their strengths 2: Positioning Cocoon is one of the first cruelty-free cosmetic brands that committed not to test on animals, being validated by the Cruelty Free International Leaping Bunny program, which is a significant advantage due to the trend of using cosmetics not being tested on animals in Korea It truly spreads the concept of beauty inside to outside by raising humanitarian and preserving sustainability of the natural ecosystem VII.INTERNATIONALIZATION STRATEGY Localization strategy is recommended to expand the firm in the Korean market Part of Cocoon's success in the domestic market is due to cultural appreciation and understanding Each Cocoon product is made from the main ingredients collected in 0 International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International Business Management 14 Vietnam's nature Containing traditional, natural and healthy elements, Cocoon's products easily meet the needs of Vietnamese consumers For example, in Vietnamese culture, people often use essential oils from grapefruit peel to wash their hair, grow hair, and avoid scalp irritation Realizing that, Cocoon has applied and launched a product line using grapefruit essential oil as the ripe ingredient This culture-oriented strategy is Cocoon's strength, helping Cocoon's products increasingly capture a large market share in the Vietnamese market Therefore, it is believed that Cocoon has enough motivation to absorb Korean culture in their production line but still conserve the Vietnam origin of the products Currently, Korean consumers are purchasing more products directly from overseas markets VIII.MARKET ENTRY STRATEGY For market entry strategy, Cocoon Vietnam’s products should be exported indirectly In the first year of a 3-year plan, the company should enter foreign markets on a small scale and then build slowly as they become more familiar with the market It gives the company time to collect appropriate information, learn more about the Korean market which helps Cocoon to minimize its risks and potential losses Moreover, South Korea and Vietnam have concluded negotiations for a bilateral free trade agreement (FTA) at a signing ceremony in Busan witnessed by Vietnamese Prime Minister Nguyen Tan Dung and South Korean President Park Geun-hye The FTA will remove import tariffs on more than 90 percent of all products In return, South Korea will cut tariffs on imports of farm produce, seafood, garments and textiles, and mechanical products from Vietnam Additionally, South Korea will further open its markets to Vietnamese investment and services This FTA provides a great opportunity for Cocoon to export the products in the Korean market In general, Korea has a strong regime of intellectual property (IP) protection and enforcement Moreover, the Korean Government prioritizes IP protection, as Korea is a significant creator of IP Nevertheless, some IP-related concerns remain, including with respect to: the transshipment of counterfeit goods, especially via small express-shipped parcels; geographical indications; collective rights management and statutory license fees for digital music services; and a lack of civil and criminal penalties sufficient to deter IP violations As a result, Cocoon Vietnam could be considered to transform the market strategy into joint ventures in order to expand the significant scale in the next years IX.INTERNATIONAL BUSINESS FUNCTION STRATEGIES In marketing strategy, the company positions itself as the first cosmetic brand from Vietnam that meets international standards, suitable for Asian women's special climates 0 International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International Business Management 15 and countries In addition, COCOON emphasizes on price when it has an extremely reasonable price in the mid-range segment, directly competing with famous brands Due to the increasingly high percentage of retail sales in current years shown in figure 6.1., the products of Cocoon can be put on sale through retail stores in Korea Figure 6.1 Retail sales value of cosmetics in South Korea from 2015 to 2020 ( In trillion South Korean won) Source: Statista (2021) Retail & Trade Retrieved from https://www.statista.com/statistics/1084087/south-korea-cosmetics-retail-sales/ As internet retailing becomes one of the strongest retailing channels in South Korea, retail grocery companies have engaged in omni-channel strategies that cater to online shoppers One such measure is click and collect, whereby consumers can pick up the items they ordered online via pick-up stations in the outlets From the cooperation between Cocoon brand and cosmetic distribution systems with over 180 stores such as Lalava, the products of Cocoon can reach target customers in a short period of time E- commerce sales method can be applied to bring consumers one step closer to products According to the Korean National Statistical Office, cosmetics online shopping transactions stood at $10.6 billion in 2020 The proportion of online transactions to total cosmetics retail sales last year was 43.8 percent, which means that more than out of 10 Korean consumers bought cosmetics online Two Korean online shopping websites considered for Cocoon products are G-market which is a global online shopping mall that can be already familiar to many foreigners in Korea and Coupang - the number one online 0 International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International Business Management 16 shopping website in Korea with the most number of users The average revenue per user is currently estimated at US$ 1,150 The most active age groups are those between 20-29 and 30-39, with roughly 80% of their members purchasing goods and services online For groups aged 40-49 and 50-59 the rates are still lower – at 57% and 30% respectively – but they are rising steadily As competition between e-commerce companies is increasing, quick delivery service is a key to attract more customers To address this need, Coupang one of the most popular e-commerce sites in Korea - invested US$ 1.3 billion to build logistics infrastructure for its delivery service called “rocket delivery” in order to be able to distribute goods within a day from the time of order placement For human resources policy, a polycentric staffing policy is preferred because it alleviates cultural myopia and is inexpensive to implement In addition, parents country national - Vietnam are not always sensitive to the needs and expectations of their host country subordinates X.WHAT MAKES COCOON VIETNAM UNIQUE AMONG OTHER COSMETIC BRANDS? Ingredients are completely originated from Vietnam No one would expect the squash we eat every day to be the main ingredient in cleansing the skin and controlling excess oil, Dak Lak coffee and Tien Giang cocoa butter becoming many people's favorite exfoliants Persimmon in Cao Bang is the "golden ingredient" to moisturize the skin… Each such endemic product from Vietnam's nature is cleverly put into its products by Cocoon From the scent to the name, they are all Vietnamese and you will not be confused with any other brand in the world Investment in product form Product form is also an important part that Cocoon pays great attention to, their designs are always environmentally friendly, all packaging is made of friendly paper, no plastic lamination, and bottles are recyclable regime In particular, Cocoon also cleverly incorporated the Vietnamese woodcarving culture into the logos of ingredients such as squash, coffee, sa-chi, pomelo… The first Vietnamese cosmetic to be certified not to be tested on animals and vegan by PETA The PETA global animal welfare organization's vegan and animal-free certification is something many cosmetic brands around the world are trying to achieve Currently, Cocoon is the first Vietnamese brand to achieve this prestigious certification When it comes to the process of getting certified from PETA, it's a huge challenge PETA not only recognizes the commitment from the brand itself, but all of its ingredient suppliers must also demonstrate that they not use animal-based ingredients and not test on animals This important milestone of Cocoon shows that Vietnamese cosmetics are making new strides, preparing for a larger playground - the world XI: CONCLUSION 0 International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDSInternational.business.management.WHAT.MAKES.COCOON.VIETNAM.UNIQUE.AMONG.OTHER.COSMETIC.BRANDS International Business Management 17 Through the above analysis, Cocoon will definitely have good development steps in Korea Taking advantage of its technology, Cocoon shows that the company is succeeding in providing value to customers By being able to preserve all the essence of natural ingredients, Cocoon has built a solid credibility with Korean consumers with 100% vegan products The brand not only provides eco-friendly products with reusable packaging and does not test on animals, but also responds to the most pressing problems and needs of Korean customers: improving and safe for the skin Furthermore, Cocoon's success is largely due to its focus on consumer behavior and cultural understanding XIII: REFERENCE Maneko (2022) Marketing strategy of Cocoon Retrieved from https://maneki.marketing/cocoon-marketing-strategy/#4-moi-truong-van-hoa International Trade Administration U.S Department of Commerce (2021) South Korea Country Commercial Guide Cosmetics Retrieved from https://www.trade.gov/countrycommercial-guides/south-korea-cosmetics#:~:text=South%20Korea%20is%20one %20of,respectively%20from%20the%20previous%20year Blog.trazy.com (2021) Top Korean Online Shopping Websites You Should Know Retrieved from https://blog.trazy.com/top-korean-online-shopping-websites-you-shouldknow/ Banco Santander (2022) South Korea: Distributing a product Retrieved from https://santandertrade.com/en/portal/analyse-markets/south-korea/distributing-a-product Nina Jobst (2021) Cosmetics market in South Korea - 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