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Why are foreign goods more expensive in Korea?

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저작자 미상 (저작물 2267374 건)

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공표년도

창작년도

2015-06-29

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Zara is one of the most popular fast fashion brands in Korea -- the company's clothing is loved for its high quality‚ modern style and relatively low prices.
But as affordable as it may be‚ a recent study comparing some seven-thousand items on websites in several countries. showed that people in Korea are actually paying a lot more than customers in other countries.
"Item prices at ZARA stores in Korea are nearly double that of Spain -- the birthplace of the company. That means the fashion retailer's prices are more expensive in Korea than anywhere else in the world."
IKEA has also been at the center of controversy after a survey showed its products are priced higher in Korea than in the United States‚ Germany and Japan.
The poll compared over 100 sofas and storage units on the Swedish furniture maker's websites for each of the countries -- and found that the average cost was 4-hundred-76 U.S. dollars in Korea 85 dollars MORE than Japan.
Although the studies don't take purchasing power into account‚ Korea still stands out from the rest.
"It's true there's a higher pricing structure in Korea. But it's also due to the monopolistic structure of distribution channels. Korean outlets are also responsible for the greater initial expenses that go into everything from marketing to infrastructure to raise awareness of foreign brands."
In addition‚ Korean consumers tend to prefer goods with higher price tags -- so the demand has played a part.
"Koreans tend to care about what others think so they buy things even if they're expensive. I think that's what's keeping the prices up in Korea."
"It's a vicious cycle -- I know prices are lower overseas‚ but it's not like I can go abroad every now and then."
Experts say distribution channels need to be diversified and more needs to be done to promote parallel imports and direct purchasing in order to root out unfair pricing strategies.
They also call on consumer agencies to provide consumers with information on prices so they can compare and seek other channels.
Kim Min-ji‚ Arirang News. Reporter :

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