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BULLDOG SKINCARE'S STRATEGIC EXPANSION INTO

THE CHANGING SOUTH KOREAN MARKET

By

Rohit Raj Ketha


@00750805
Table of Contents
1. Introduction........................................................................................................................................ 3

2. Overview of Possible Drivers for International Expansion..................................................................3

2.1. Current Globalisation Trends...................................................................................................... 3

2.2. Relevant Theories and Models of International Business...........................................................4

3. Global Connectedness...................................................................................................................... 5

4. PEST(EL) Analysis............................................................................................................................ 7

5. Reflective Summary......................................................................................................................... 10

References:......................................................................................................................................... 12

2
1. Introduction

The natural skincare company Bulldog Skincare is looking at expanding into South Korea. The
purpose of the research is to give Bulldog Skincare useful advice and recommendations for entering
new markets by analysing the main factors that influence international expansion, global
connectedness, macroeconomic factors, and potential obstacles (Bulldog Skincare, 2024). The study
aims to investigate the current global landscape, evaluate the global connectedness of South Korea,
and examine the key PESTEL components in each market. The study provides a comprehensive
analysis of Bulldog Skincare's potential for global growth, focusing on emerging trends, the Global
Connectedness Index for South Korea, a PESTEL study of each target market, and a thoughtful
conclusion. It evaluates their degrees of global integration, participation in regional trade blocs, and
overall effects on trade costs and market access .Along with highlighting significant risks and
possibilities in each market, the study produces well-informed advice for which market is best to enter
and the elements of strategic success. The purpose of the research is to help Bulldog Skincare make
informed decisions regarding their development goals.

2. Overview of Possible Drivers for International Expansion

2.1. Current Globalisation Trends

The centre of gravity of the world economy is progressively shifting as consumer spending power
rises in developing nations like South Korea. According to World Bank estimates, GDP per person will
increase by 20% from 2019 to USD 17,046 by 2024. Bulldog Skincare's natural and ethical products
are ideal for the burgeoning middle class, who have an increasing amount of discretionary cash and a
penchant for upscale goods. The priorities of consumers are changing, with a growing focus on ethical
sourcing, sustainability, and health. 74% of global consumers are willing to spend more for
sustainable products, in line with Bulldog's commitment to using only natural ingredients and non-
cruel manufacturing processes, according to a 2022 Nielsen study (Forshaw, 2020). Bulldog's brand
is benefiting greatly from this development as it works to penetrate new markets. The e-commerce
juggernaut was unleashed by the digital revolution, which also democratised market access and broke
down regional barriers. Bulldog Skincare can effectively reach out to clients using platforms like
MercadoLivre and Coupang, as smartphone usage has surpassed 70% in South Korea.
Greater cross-border engagement is made possible by this digital infrastructure, which allows for
tailored customer experiences and targeted marketing methods. Technological advancements like
social media marketing and data analytics are completely changing the business landscape. Bulldog
Skincare may employ these strategies to build robust brand communities in the market segments it
has chosen and modify its messaging to suit certain cultural quirks. Realising the full potential of these
digital channels will need an understanding of local internet preferences and adapting appropriately
(Bulldog Skincare, 2024). Environmental consciousness is a global phenomenon that is no longer a
specialised concern. Customers are searching more and more for products that put sustainability first,

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and Bulldog Skincare's commitment to using natural ingredients and eco-friendly packaging aligns
well with this trend. This has a major economic benefit by appealing to environmentally conscious
consumers in South Korea.
Bulldog Skincare is expanding its worldwide reach via the use of global trends in sustainability,
wellness, and ethical sourcing (Irwin, 2021). Prospective customers seeking high-end products are
represented by the expanding middle class in developing countries like South Korea; nevertheless,
Bulldog's premium natural ingredients and ethical production practices may not sit well with local
pricing sensibilities. It's crucial to balance brand value and adjust pricing strategies based on local
purchasing power. Bulldog's ethical as well as cruelty-free values are well linked with the expanding
trend of conscious consumption, but cultural nuances need to be taken into account. Bulldog's sails
will ensure they fully harness the power of this positive wind by customising marketing to align with
local beliefs, boosting natural elements through culturally relevant media, and highlighting ethical
techniques through transparent communication. Bulldog needs to sail with the digital trade winds, or
else it will capsize in the digital seas (Bonura, 2021). Collaborating with nearby online influencers and
retailers, and knowing the top e-commerce platforms and payment options in each market, might all
contribute to the business's expansion. Using modern technologies, such as data analytics and social
media marketing, which enable targeted advertising and customised customer experiences, might be
very beneficial for Bulldog (Bulldog Skincare, 2024). Negotiating cultural sensitivity and data
protection laws, however, will be essential for morally sound and successful online marketing
strategies. Riding the environmental wave in South Korea is encouraging for Bulldog's commitment to
sustainability. By showcasing action through eco-friendly packaging, carbon offset initiatives, and
sustainable sourcing, Bulldog will secure its place in this wave. With careful sail changes,
technological integration, and a genuine commitment to sustainability, Bulldog may set itself up for
success and become a dominant force in its sector.

2.2. Relevant Theories and Models of International Business

Bulldog Skincare may use the Ownership, Location, and Internalisation (OLI) framework as a useful
tool to assess how well it would function in South Korea. It highlights the advantages of owning the
firm, such as its commitment to using natural ingredients, non-cruel production processes, creative
formulas, and eco-friendly packaging. Bulldog's competitive edge stems from a variety of attributes
that increase the company's chances of success across many industries (Gillespie and Swan, 2021).
Geographical benefits are also taken into consideration by the OLI framework. Examples of these
include the growing middle class and disposable income, its membership in Mercosur, and the
technologically savvy and environmentally conscious citizens of South Korea. Duty-free access is
made possible by the free trade agreement with the US, which reduces trade expenses and boosts
revenue. Benefits of internalisation include comparing the pros and cons of doing things internally vs
licensing or franchising, as well as using Bulldog's current R&D and marketing capabilities for targeted
campaigns in each area (Powell et al. 2021). For Bulldog to expand effectively, the three pillars of the
OLI architecture must be balanced. They may be able to realise their full potential by utilising
ownership advantages like brand differentiation and ethical standards in locations with advantageous

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trade agreements and market conditions. By maintaining internal control over production and
marketing, they enhance their brand image and show their commitment to quality. However, the OLI
paradigm is constrained by variables that might significantly impact growth performance, such as
currency fluctuations, political unpredictability, and cultural disparities. Undertaking a thorough
PESTEL analysis on every market will yield a further understanding of these external factors in
addition to a thorough understanding of potential issues and opportunities (Taraniuk et al. 2020).
Ultimately, Bulldog Skincare can make use of its ownership advantages, manage challenges and
opportunities, and maximise internalisation strategies thanks to the OLI framework. Through the
integration of this approach with a comprehensive PESTEL analysis of South Korea, Bulldog can
make informed judgements about their target market as well as design an effective path for sustained
global growth.
A robust theoretical toolkit is essential for Bulldog Skincare's global expansion in order to successfully
navigate new markets (Bulldog Skincare, 2024). Bulldog's natural ingredients, cruelty-free production
processes, and proprietary formulas are some of its unique selling points (USPs), which are clarified
by the internalisation theory and resource-based perspective. These assets can provide you with a
competitive advantage in South Korea, but you have to balance them against transaction expenses.
Network theories highlight the importance of inter-firm cooperation in global trade; joint ventures with
regional distributors or retailers in these regions provide access to pre-existing networks while
reducing entry barriers and distribution expenses (Ireland, 2021). GVCs, however, can make
companies more vulnerable and dependent on outside parties, therefore careful consideration and
strong contract formulation are required. Institutional theory and cultural sensitivity play significant
roles in the success of international businesses. Understanding the legal, regulatory, and cultural
frameworks in South Korea is essential for modifying marketing strategies and averting potential
problems. Bulldog's message, that brand identity may need to be modified to appeal to local
audiences in each area, is based on the observation that cultural differences may have an impact on
consumer choices and marketing performance. Bulldog needs to be creative and innovative in order
to adapt to shifting market conditions (Bulldog Skincare, 2024). They can adapt to shifting client needs
in both countries because of their commitment to research and development and ongoing innovation.
However organisational inflexibility may inhibit creativity, so Bulldog has to encourage collaboration
and experimentation in order to be adaptable and responsive in these unstable markets. In order for
Bulldog Skincare to establish itself as a top brand, its global expansion calls on a robust theoretical
toolkit that comprises the OLI framework, internalisation theory, network theories, institutional theory,
and dynamic capacities.

3. Global Connectedness

South Korea, a nation with a high global connection index (GCI) score of 74.05., is where Bulldog
Skincare aims to expand (Trofimova et al. 2020). Due to free trade agreements, robust infrastructure,
tech-savvy citizens, and trade networks, the nation has a sizable Asian and North American consumer
base. Nevertheless, the country presents some unanticipated challenges, such as navigating a retail
market dominated by Korean firms, guaranteeing premium products and unique features, and

5
customising messaging and branding to suit regional tastes. The GCI is a helpful guide, but a
thorough plan is required to navigate the complexity of South Korean connections (Bulldog Skincare,
2024). Important considerations include complicated import regulations, stringent product labelling
specifications, problems with intellectual property theft, and ecologically responsible sourcing and
packaging. Additionally, Bulldog's effectiveness depends on understanding the nuances that go
beyond the GCI score. Complying with stringent product labelling regulations and intricate import
regulations may need certifications and other compliance strategies.
Effective legal strategy as well as brand protection techniques are essential for protecting intellectual
property (Schlegelmilch, 2022). The idea of sustainability is especially significant since South Korean
consumers choose eco-friendly activities. Bulldog needs to invest in R&D, modify its offers to satisfy
customers, and consider cultural variations. In conclusion, seeing opportunities as well as risks is
critical to Bulldog Skincare's success in South Korea. The company may use the South Korean
connection as a springboard for long-term success as well as brand recognition by demonstrating
cultural awareness, developing and selling new products, and adapting strategies to the demands of
the market.
The expansion of Bulldog Skincare into South Korea presents potential advantages as well as
challenges. Strong infrastructure, tech-savvy consumers, and prospects for financial and commercial
mobility are all made possible by the nation's high GCI score of 74.05 (Tseng 17 and Ng, 2022).
Navigating this interwoven environment, however, presents challenges including a competitive market
controlled by Korean firms, picky consumers looking for innovative features and high-quality items,
and cultural nuances requiring careful consideration and consumer sensitivity (Bulldog Skincare,
2024). Additionally, Bulldog's effectiveness depends on understanding the nuances that go beyond
the GCI score. Complying with stringent product labelling regulations and intricate import regulations
may need certifications and other compliance strategies. Effective legal strategy as well as brand
protection techniques are essential for protecting intellectual property. The idea of sustainability is
especially significant since South Korean consumers choose eco-friendly activities.
As South Korea actively engages in regional trade blocs, Bulldog Skincare intends to expand its
presence in the nation. These agreements provide favourable trading terms, open up new markets,
and increase access to a wider range of clients. Two significant trade blocs are the US-Korea Free
Trade Agreement (KORUS) and the Regional Comprehensive Economic Partnership (RCEP)
(Bhandari, 2024). By removing tariffs on over 90% of goods traded within the area, the RCEP lowers
import costs and boosts regional competitiveness. Additionally, it lessens logistical difficulties and
encourages effective product transportation. Additionally, Bulldog has access to the 2.2 billion-person
global consumer market through RCEP, which might lead to a sizable and devoted clientele. Bulldog
has benefited greatly from the US-Korea Free Trade Agreement (KORUS), which has increased
South Korea's commercial ties. Because of the decreased consumer cost brought about by the
removal of tariffs on cosmetics and personal hygiene goods, Bulldog's products are now more
enticing. KORUS reduces compliance costs and expedites market access by harmonising technical
regulations and streamlining product labelling requirements. It also fosters expertise sharing and
commercial cooperation, which creates the possibility of future partnerships with US businesses.

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However navigating these trade blocs requires giving careful thought to origin limitations, legal
compliance, and culturally-appropriate marketing strategies.
Bulldog Skincare intends to expand into South Korea, which offers opportunities for the skincare
industry due to its high Global Connectedness Index (GCI) score of 74.05. The nation is a desirable
market for direct-to-consumer contacts and e-commerce marketing due to its tech-savvy populace
and high internet usage. Bulldog may utilise the internet to reach a wider audience and circumvent
established retail channels. Important partnerships and co-creation chances with local enterprises are
made possible by South Korea's strong innovation ecosystem, which is fueled by R&D investments as
well as a culture of technological advancement (Christofi et al. 2021). The increasing awareness of
environmental issues in South Korea aligns with Bulldog's commitment to natural ingredients and
environmentally responsible practices. In addition to enhancing the company's reputation, transparent
sourcing, recyclable packaging, as well as carbon offsetting initiatives may show this commitment to
environmentally conscious customers. Conversely, Bulldog has to navigate a cutthroat market full of
picky customers, nuanced cultural norms, and intricate regulatory frameworks. Bulldog has to use
open markets, embrace e-commerce, foster innovation, and show a dedication to sustainability in
order to succeed in South Korea. To establish a solid foundation in this fast-paced sector, one must,
however, overcome the competitive landscape, exceed client expectations, honour cultural quirks,
and navigate the regulatory labyrinth.
The expansion of Bulldog Skincare into South Korea is a difficult journey via the global networking
landscape (Bulldog Skincare, 2024). Due to its membership in the RCEP and KORUS, the nation
enjoys reduced tariffs and more straightforward regulations in addition to preferential access to a
market with over 2.2 billion consumers. This is in line with the potential advantages Bulldog's goods
may provide. With over 90% of its population using the Internet, South Korea is a desirable market for
e-commerce. Bulldog may use tailored online advertising to bypass conventional channels and get in
direct contact with clients. Opportunities for co-creation, as well as data sharing, are presented by the
nation's fourth-ranked worldwide R&D commitment. Bulldog is able to adapt its products to evolving
consumer demands by researching regional preferences and working with regional players. Bulldog is
forced to contend with a cutthroat marketplace full of picky clients, challenging cultural norms, and
legal restrictions (Lim and Ferguson, 2022). Gaining a competitive edge against dominating Korean
conglomerates requires strategic partnerships or distinctive branding (Bulldog Skincare, 2024). It
needs constant innovation and product improvement to meet Korean customers' expectations. Careful
messaging and branding adaptation is necessary since misinterpreting cultural sensitivity can have
severe consequences. To avoid penalties and delays, it is imperative to comprehend the many
regulations governing imports and product labelling. Compliance strategies and certifications are also
necessary. Bulldog might potentially achieve long-term success and raise its brand awareness in this
changing industry by effectively navigating these challenges.

4. PEST(EL) Analysis

A deep dive into the constantly shifting waters of the macroenvironment is necessary for Bulldog
Skincare's South Korea expansion. A robust analytical tool is needed to chart a course for sustained

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success: the PESTEL analysis (Bulldog Skincare, 2024). This paradigm provides critical insights for
strategic decision-making by analysing the legal, political, social, technical, environmental, and
economic factors that influence the market.
● Political: As demonstrated by cheaper tariffs and simpler customs processes for Bulldog's
goods, South Korea's active participation in trade blocs like RCEP and KORUS offers access
to a vast consumer market of over 2.2 billion (Kostoska et al. 2020). Nonetheless, these
agreements require flexibility and ongoing oversight as they might be broken by political
changes or economic challenges. Strict product labelling guidelines, such as those provided
by the Korean Ministry of Food as well as Drug Safety (MFDS), must be strictly adhered to in
order to avoid delays and fines. A commitment to regulatory compliance is shown via
certifications, which may boost trust and brand awareness. Bulldog's moral values are
perfectly matched with South Korea's Green New Deal initiative, which offers tax breaks and
incentives for sustainable development and green engineering (Bulldog Skincare, 2024).
Taking advantage of these incentives by implementing eco-friendly practices, as evidenced
by their B Corp designation, may provide them a competitive advantage and draw in
environmentally conscious clients.
● Economic: Bulldog's high-end skincare products find a steady and appealing market in South
Korea, where GDP growth is expected to surpass 2.5% by 2024 (Bae and Chang, 2021). The
positive outlook is reinforced by rising disposable income, especially for millennials and
Generation Z, who make up over half of all consumer spending. Profitability is at risk because
of the recent fluctuations in the value of the Korean Won relative to other currencies.
Reducing risk and maintaining financial stability will require the use of effective financial
hedging techniques like options contracts and diversification. As a substitute for conventional
retail channels, the thriving Korean e-commerce market has a penetration rate of above 80%
(Bulldog Skincare, 2024). Collaborating with well-known online platforms like Coupang or
making an investment in a robust online presence through targeted marketing campaigns are
two effective ways to reach target audiences.
● Social: Given that over 15% of South Korea's population is over 65, the country's rapidly
ageing population offers an untapped market for geriatric cleaning and skincare products.
Success in this category will depend on carrying out market research to have a deeper
understanding of their distinct needs and desires (Francisco Cantón et al. 2023). Dynamic
beauty trends in South Korea that focus on natural components, unique traits, and
customised solutions need for constant adaptation. To keep ahead of these changes and
appeal to the interests of Korean customers, Bulldog needs to continuously innovate and alter
its product design and marketing. The high rate of internet penetration and smartphone usage
(approaching 90% and 80%) among Koreans create the perfect setting for influencer
relationships and social media marketing (Bulldog Skincare, 2024). In order to engage with
target customers and increase brand awareness, growth will require the effective use of a
variety of media.

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● Technological: The fourth-ranked nation in the world for research and development (R&D) in
South Korea has advantages and disadvantages. Bulldog can accelerate its invention and
product development by working with nearby research universities or tech businesses. But
being ahead of the curve in the beauty industry is essential to staying competitive, as seen by
the rise of AI-powered skincare products (Bulldog Skincare, 2024). All online marketing and
data collection activities must carefully conform to South Korea's strict data privacy
regulations, like the Personal Information Protection Act (PIPA). Reputation management for
brands will rely on gaining customer confidence and safeguarding data security through open
and honest procedures. With the growing market for customised beauty treatments, fueled by
AI and data analytics advancements, Bulldog is venturing into uncharted terrain. Investing in
technologies that offer customised product recommendations or formulas might give you a
competitive edge and satisfy the needs of certain clientele.
● Environmental: Bulldog stands to gain a great deal from the growing environmental
consciousness in South Korea, which is driven by government initiatives like the Green New
Deal and public awareness campaigns. Customers may be drawn to a brand that
demonstrates its dedication to sustainability by using natural materials, recyclable packaging,
as well as carbon-offsetting initiatives (Usha, 2023). Bulldog's environmental credentials may
be reinforced by participation in sustainability initiatives and certifications like the Eco-Label
Korea. Although efficient in terms of collection, South Korea's waste management system has
constraints about recycling and landfill capacity. Taking up innovative packaging alternatives
like biodegradable materials or collaborating with neighbourhood recycling groups may show
environmental commitment while reducing the likelihood of waste generation concerns.
Bulldog's proactive approach is necessary given the growing global apprehension around
microplastics in makeup (Bulldog Skincare, 2024). As seen by their current product line, they
are meeting customer demand for ethical and ecologically sustainable beauty products by
including plastic-free alternatives in both formulae and packaging. Enhancing brand
reputation and fostering trust may be achieved through sourcing and production process
transparency.
● Legal: In South Korean business, which is renowned for its stringent intellectual property
laws, safeguarding intellectual property, such as formulas and trademarks, is essential.
Innovations will be protected and infringement prevented by obtaining patents and trademarks
for novel materials or container designs (Coates, 2023). You can handle the intricacy of
intellectual property laws and maintain compliance by collaborating with neighbourhood legal
experts (Cornwell and Jahn, 2023). Strict regulations about ingredients, labelling, as well as
testing are established by the MFDS. To prevent product recalls and other legal ramifications,
it is essential to ensure compliance with these regulations through Good Manufacturing
Practice (GMP) certification and thorough product testing. Establishing consumer trust via
transparency in safety guidelines and product control is essential for long-term success
(Bulldog Skincare, 2024). The Personal Information Protection Act (PIPA) of South Korea
regulates the gathering and use of data. Take solid data security procedures and get clients'

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express consent before collecting personal information to prevent penalties and foster
confidence. Maintaining client confidence and ensuring PIPA compliance may be achieved by
collaborating with data security professionals.

Factor Key Opportunities Key Challenges Actionable


Recommendations

Political Taking part in KORUS Possible conflicts or Keep an eye on


and RCEP to gain changes in trade policy political developments
preferential trade and modify plans as
access. necessary.

Economic Robust GDP Inflation and currency To reduce risk,


expansion combined fluctuations implement suitable
with rising disposable financial hedging
income strategies.

Social Growing demand for Shifting tastes and Develop product lines
elder care products trends in beauty. for senior hygiene and
due to an ageing skincare products.
population

Technological Thriving online market Quick advancements To have a powerful


and technologically in technology and laws online presence,
astute clients protecting data privacy spend money on digital
marketing.

Environmental Growing consumer Issues with waste Make use of


interest in eco-friendly management and ecologically friendly
items landfill capacity formulations and
packaging (e.g.,
natural components,
recyclable materials,
carbon offsets).

Legal Robust laws strict guidelines and Acquire trademarks


safeguarding testing requirements and patents for novel
intellectual property for product safety materials and
container designs.

Table1: Key findings of PEST(EL) Analysis

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5. Reflective Summary

The expansion of Bulldog Skincare into South Korea will be challenging and necessitate in-depth
PESTEL analysis as well as an understanding of the interconnectedness of the nation. Bulldog's
natural skincare products have a great market presence as well as a GCI score of 74.05. These
factors demonstrate how popular they are. Exclusive access to a sizable Asian and North American
clientele is made possible by membership in trade blocs like RCEP and KORUS. Nonetheless, the
GCI highlights how crucial it is to keep a careful eye on regulations, cultural quirks, and market
dynamics. Bulldog uses PESTEL analysis, which highlights South Korea's rising environmental
concerns, to manage both regulatory and environmental obstacles. An emphasis on natural materials,
eco-friendly packaging, and carbon offsetting schemes is crucial to attracting environmentally
conscious consumers and enhancing Bulldog's positive brand image. Despite these possibilities, the
legal environment is uncharted territory, requiring careful examination due to stringent regulations
governing data privacy and product safety.
Bulldog Skincare is aware of the many opportunities and risks present in the South Korean market.
Positive aspects include a sizable consumer base, a digitally savvy populace, and an increasing
consciousness of environmental issues. The nation offers opportunities for co-creation and
information exchange due to its strong fourth-place global R&D investment. However, there are
obstacles in the shape of intense competition, a strong desire for superior goods, peculiar cultural
practices, and negotiating challenging import procedures. Bulldog has to invest heavily in R&D, build
a strong brand identity with distinctive value propositions, and make key connections in order to
surpass expectations. To establish credibility and foster brand loyalty, it is imperative to comprehend
Korean beauty trends and steer clear of cultural traps. Regulatory barriers, which include complex
import regulations and specific requirements for product labelling, complicate matters further.
Bulldog's ability to identify market trends and adapt methods quickly enables it to build long-term
success and brand exposure.
The strategic alignment of Bulldog Skincare's development in South Korea with contemporary
international business philosophy is evident. The business's dedication to using natural materials and
environmentally friendly procedures supports the Resource-Based View (RBV) and creates the
foundation for a long-term competitive advantage. Eventually, transaction costs can be reduced by
navigating trade agreements with the aid of transaction cost economics (TCE). The application of
network theory becomes essential as Bulldog embraces e-commerce platforms and concentrates on
creating robust online networks. This tactic aligns with the theory's emphasis on making online
relationships. Additionally, the use of institutional theory highlights how important it is to understand
and respect South Korean cultural norms.

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