Topic: Differences in Economy and

Society: The case of Biti’s entering

South Korea’s market

GROUP 3
Nguyễn Đức Bình Trần Phan Nhật Hằng
Trần Phương Mai Trần Hồng Hạnh
Trần Thị Lan Anh Lê Thanh Thảo
TABLE OF CONTENTS

SECTION 01 SECTION 02
01 Overview of Biti’s company 02 Vietnam’s market and
Biti’s performance

SECTION 03
03 South Korea’s market
01
SECTION 01
Overview of Biti’s company
BITI’S COMPANY OVERVIEW
Biti’s history
SANDALS

In 1982, Biti’s was founded with 2 production

units
Produced Rubber Sandals

In 1986, the two units merged into Binh Tien

Rubber Cooperative

Changed to BINH TIEN IMEX CORP., PTE., LTD

Company
BITI’S COMPANY OVERVIEW
Biti’s vision

“ ...maintaining the leading position in

Vietnam and proactively reaching out for
international opportunities...
—Mr. Vuu Khai Thanh

Biti’s mission

“ ...continuous improvement and enhancement

of the quality of our products...to further
satisfy...demands of consumers...
—Ms. Lai Khiem
BITI’S COMPANY OVERVIEW
Biti’s key product Footwear
High-end sports Fashion Leather Western
Sneakers Sandals
Shoes Women’s Shoes Shoes
02
SECTION 02
Vietnam’s market & Biti’s performance
VIETNAM’S ECONOMY

Vietnam economic system

Socialist-oriented
market economy

A mix between
state-planned
economy and a
market economy
controlled by demand
and supply
VIETNAM’S ECONOMY

Economic indicators

GDP Growth
In 2020, GDP in Vietnam
was worth
271.16 million USD

Clothing and
fashion
sector was excluded from
the necessities priority list
VIETNAM’S ECONOMY Economic indicators

Inflation rate
In 2020 the rate was
amounted to
3.22 percent
compared to the previous year

Export turnover
281 billion USD
in December 2020. The
leather and footwear
sector reached

17.2 billion USD

compared to 2019
VIETNAM’S ECONOMY

Economic indicators

Unemployment rate
Due to the pandemic, the
unemployment rate in 2020
was

2.27 percent
In which, those among the
working age was

2.48 percent
VIETNAM’S ECONOMY
Average monthly income
Economic indicators per capita
in 2020 reached approximately
4.23 million VND
In urban areas group
was about 11.4 million VND
and 7.4 million VND in
rural areas

Vietnamese living
standards has
increased. However,
there is still a slight gap
between cities and
countryside life.
VIETNAM’S SOCIETY
Demographic indicators
POPULATION
Until 2020, Vietnam had a
population of 98,721,275
people.
Vietnam is enjoying the period
of “golden population
structure”

48.99 million

GENDER
females
and
48.6 million
males
VIETNAM’S SOCIETY

Demographic indicators
Ethnicity and living areas

Other ethnic groups

14% Account just for over 14%. Most of
them live in the mountainous and
midland areas
86%
Kinh people
Take up the largest proportion.
They live scatteredly but mostly
concentrate on deltas and river
Vietnam has 54 ethnic groups living
deltas.
together. In which:
VIETNAM’S SOCIETY
Demographic indicators
SINGLE-HOME HOUSEHOLDS EDUCATION
● There are 8.88 million pupils in
● Number of households in 2019: 26.87
primary education in the school year
million
2020 - 2021
● Average family size: 3.9
● Youth literacy rate was 98.41%
people/household
nationally in 2020
VIETNAM’S SOCIETY
Customer behavior trends

1. Vietnamese consumers prefer

high-quality products with low prices 2. Young
customers
are
Launching promotions such as interested in
pre-order discounts, seasonal unique and
promotions to motivate customers
trending
products

Analyzing new trends to design new

products. E.g: Biti’s Hunter X
Marvel - TRIBUTE campaign
VIETNAM’S SOCIETY
Customer behavior trends

3. People tend to shop online more due to the

pandemic

Combining sales online through

E-commerce platforms such as Tiki,
Lazada, Shopee...

4. Vietnamese get attracted to a product

brand when the representative is a celebrity

Creating social network fever and promoting

products by choosing renowned artists among
Gen Z such as Son Tung MTP, Soobin Hoang Son,
Huong Giang Idol,...
BITI’S PERFORMANCE IN VIETNAM
Business results

NET REVENUE NET PROFIT

2019 1,954 111

billion VND billion VND
BITI’S PERFORMANCE IN VIETNAM
Business result (2019)

Source: Vietnambiz (2019)

TOP 1
FOOTWEAR BRAND
IN VIETNAM
BITI’S PERFORMANCE IN VIETNAM
Brand image

“ Tender care of your feet

“
03
SECTION 03
South Korea’s market
SOUTH KOREA’S ECONOMY

Type of economy
Mixed economy

Opportunities: Economic and political stability

Threats: From the Korean Government

❖ Favor homegrown businesses.
❖ Set a higher bar for the worldwide brand.
❖ Limit the chances to adopt price-based
competitive
SOUTH KOREA’S ECONOMY
Economic freedom
KOREAN ECONOMIC FREEDOM SCORE

No change 74.0

50 60 70 80 100

60.2 61.6
Regional average World average

South Korea’s economy continues to Score: 74.0/100 > World average (61.6)
maintain its ranking among the most
free countries Ranking: 24th

High economic freedom ⇒ The market is very open and has a lot of advantages to enter
SOUTH KOREA’S ECONOMY
Ease of doing business
New Korea,
Singapore Hongkong Denmark
Zealand Rep

Ranking 1st 2nd 3rd 4th 5th

Score 86.76 86.20 85.32 85.29 84.00

Top country by ease of doing business index in the world (2020)

Score: 84/100
Ranking: 5th
⇒ Korea guarantees high autonomy in regard to business management
SOUTH KOREA’S ECONOMY
GDP

In 2020, GDP in Korea was

worth

1.631 billion USD

Rank: 10th
(2 places higher than
2019’s ranking)

⇒ Bright spots despite the COVID-19 shock

SOUTH KOREA’S ECONOMY

Inflation rate

In 2020 the rate was

amounted to
0.5 percent

Fluctuates between 0,4% - 1,9%

SOUTH KOREA’S ECONOMY
Unemployment rate

Due to the pandemic, the

unemployment rate in 2020
was

3.93 percent
Age (20 - 29 years old) had
the highest unemployment
rate

9.3 percent
⇒ Biti’s can hire a large number of
workers for related manufacturing plants
at a suitable price
SOUTH KOREA’S ECONOMY
Household consumption expenditure

InIn2020,
2020,GNI
GNIper
percapita
capitastood
stoodatat

$31,755(37.47
$31,755 (37.47million
millionwon)
won)
down1.1
down 1.1percent
percentfrom
fromthe
theprevious
previous
year
year

Declinedfor
Declined forthe
thesecond-straight
second-straightyear
year

Clothing and shoes is one of the

sectors Koreans consume the most
SOUTH KOREA’S ECONOMY
Distribution systems
Commercial centers

● A lot of shopping malls such

as Lotte Department Store,
Starfield COEX Mall,...
● Venues are located in the
city’s vibrant districts
SOUTH KOREA’S ECONOMY
Distribution systems
eCommerce market

● Key component of the overall

consumer market in Korea
● The biggest player in the
South Korean eCommerce
Market is coupang.com
● The top three stores account
for 15% of online revenue in
South Korea
SOUTH KOREA’S SOCIETY
POPULATION
DEMOGRAPHIC FACTORS
In 2020, South Korea has more
than 51 million people

AGE

Sharp drop in proportion of

young population
Only 13.1% in their 20s

Male

GENDER
Ratio 100,5:100

Female

Korea’s population pyramid

SOUTH KOREA’S SOCIETY
DEMOGRAPHIC FACTORS (NEXT)

37.9% of the households in the Education

Single-perso
n household

country are single-person

families
Each single household spent ~ Level of
$1235/month education is
Urban
very high
The population
with tertiary
education
aged 25-34
81.6% live in the
year olds ~
urban area 70% in 2019
Living area
SOUTH KOREA’S SOCIETY
TRAITS AND BEHAVIOURS
2. Emphasis
on image
1. Tech-savvy
3. Affected
by
influencers
Jennie’s bow crop-top trend

Superstars
and
influencers
are
Recourse to credit cards: Only trendsetters
20% of transactions made in
cash Jennie’s bobby pins
SOUTH KOREA’S SOCIETY
TRAITS AND BEHAVIOURS (NEXT)

4. Like special
Because they feel
promotions &
special
discounts

Starbucks’ reward cards in South Korea

5. Do not speak Spend $5.3 bil for English

English & have high education in 2019
sense of nationalism BUT do not choose to
speak English

Brands entering the market must have a

translation company in Korea with to
coordinate
SOUTH KOREA’S SOCIETY
TRAITS AND BEHAVIOURS (NEXT)

6. “Shibal biyong” Behavior of paying frivolous expenses out of

sentiment among young stress and frustration
people

7/10 young people believe inequality is

a major problem (Statistics Korea)

“No money but I want to eat Jiro Ono [sushi] / worked hard to get my pay / captures
… / let me be even if I overspend / even if I break apart my savings the
sentiment
tomorrow.” - “Go Go” by BTS
 COMPARISON OF VIETNAM - SOUTH KOREA’S MARKET
(regarding economic factors)
I. Economic system
The main difference between Vietnam and South Korea’s economy lies in the degree of
governmental involvement
Socialist-oriented economy
● Firms are partially or entirely
owned by the state but are allowed
to act in a competitive market
economy
● Prices are determined by the
government and the goal is to achieve
market equilibrium
Mixed economy
● Private property and private firms are
protected but work alongside the
government
● Prices are determined by the market’s
shifts – although the government can
intervene to “protect” citizens and
prevent economic inequalities.
COMPARISON OF VIETNAM - SOUTH KOREA’S MARKET
(regarding economic factors)
II. Economic development

In Korea, Bitis’s recruitment and retention

2. become easier compared to Vietnam.
1.
Korea’s standard of living and
purchasing power is
In Korea, Bitis will be more optimistic to invest
11,3 times 3. => Increase in productive capacity and enable
that of Vietnam. higher rates of economic growth in the future.
COMPARISON OF VIETNAM - SOUTH KOREA’S MARKET
(regarding social factors)

I. Demographic traits

Vietnam 89% more

1 Population
than South Korea

2 Gender distribution Similar

● Vietnam: Golden population structure

3 Age distribution ● South Korea: Aged society

● Vietnam: 33.6% of population are living in the urban area

4 Living area
● South Korea: 81.6% of population located in the urban area
COMPARISON OF VIETNAM - SOUTH KOREA’S MARKET
(regarding social factors)

II. Customer behaviour: Common points

Young customers are interested in products:

● Having unique and trending figures

● Having a celebrity as the representative

Success of Korean shoes brand from “Irene effect”

Vietnam’s Bitis Hunter Celebrity Endorsements
COMPARISON OF VIETNAM - SOUTH KOREA’S MARKET
(regarding social factors)

II. Customer behaviour: Differences

Regarding Vietnam South Korea

Products High-quality products with Special promotions &

prefered low prices discounts/ Shibal biyong

E-commerce Developing Developed

Popular
Cash on delivery, Debit cards, credit cards,
payment
domestic ATM cards T-money card
method
SWOT ANALYSIS

STRENGTHS WEAKNESSES
Brand Image S W High-end segment
products
Wide range of products

Reasonable price

Experience
O T
Marketing campaign
SWOT ANALYSIS

Same economic systems

A dependant buying
behaviour
S W
Tech-savvy country

Employment

OPPORTUNITIES
O T
SWOT ANALYSIS

S W Local Korea stores and

international
companies

Korea’s policies

THREATS
O T
THANK YOU FOR
LISTENING!