KITA News and Reports
  • Korean IoT Products, ‘Excellent’ Product Reliability, Brand Attractiveness, Performance
    2018-07-23

    Korean IoT Products, ‘Excellent’ Product Reliability, Brand Attractiveness, Performance

     

    - KITA compares perceptions of Korean IoT products in major countries Need to target Chinese market with strong security functions -

     

    Major overseas consumers rated Korean products of Internet of Things (IoT) as high for 'product reliability', 'brand attractiveness', and 'performance' while selecting 'durability' and 'high price' as weaknesses.

     

    The Institute for International Trade (President, Shin Seung-kwan) of the Korea International Trade Association conducted ‘A Comparative Study on Consumers' Perceptions in Five Countries in the Era of IoT' based on a survey of 1,000 people in Korea, the United States, Japan, China and Germany. According to the study, 56 percent of the IoT product consumers have purchased Korean products and they selected ‘product reliability (47.7%)’, ‘brand attractiveness (46.4%)’ and ‘performance (45.8%)’ as major strengths. By country, the consumers in different countries interpreted attractiveness differently as the consumers in Korea and China gave highest scores for ‘brand attractiveness’ while the consumers in the United States, Japan and Germany selected ‘product reliability (60.9%)’, ‘low price (61.5%)’, and ‘excellent performance (60.7%)’ as the biggest attractive factors.  

     

    On the other hand, the consumers of Korean IoT products perceived ‘low durability’ and ‘high prices’ as the major weaknesses. By country, the consumers in Germany and China answered 'durability', and Japanese and American consumers pointed out 'brand attractiveness' as Korean IoT products’ disadvantages.

     

    Among Korean IoT products, ‘Smart Appliances (59.1%)’ were the most popular products that the consumers would like to purchase in the future, followed by 'Smart lighting and light bulbs (42.3%)’ and 'smart door locks (32.4%)’. In all four countries except Japan, 'smart household appliances' accounted for the highest portion. However, 57 percent of Japanese respondents answered ‘there is no Korean IoT products that they would like to purchase’. This implies that the Korean products are not competitive in the Japanese market.

     

    The survey respondents' purchasing experiences of IoT products appeared in the order of China (48.5%), Korea (29%), Germany (24%), the United States (21%) and Japan (14%), reflecting the high interest of Chinese consumers. In fact, China showed the highest interest rate of 84.5% while Japan showed 51%, which was the lowest. In particular, to the question ‘Are you willing to purchase more IoT products in the future?’, the respondents in China (95.5%) was far ahead of those in Korea (82.5%), the United States (71.5%), Germany (67.5%) and Japan (42.5%). The number one IoT products that the consumers in all five countries wanted to purchase was ‘Smart Appliances’.

     

    Jang Hyun-sook, a researcher at the Institute for International Trade of the Korea International Trade Association, said, In the case of Japan, there are many people who purchase Japanese IoT products and there are many people who are not willing to purchase Korean products. Therefore, it is relatively difficult market to make inroads into. The researcher stressed, Considering consumer characteristics, China appeared to be the most promising market for IoT products. Hence, it is necessary to work on the entry strategies focusing on products with strong security functions.  

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