An Entry Strategy on Overseas Direct Sales of Korean SME's

Abstract

As cross border B2C e-commerce is widely spreading, three strategic steps toward global B2C e-commerce (overseas direct sales) has been proposed to small businesses to enhance their economic status for research purposes. Step one covers the attempt to enter and sell among foreign global open markets, such as eBay and Amazon, along with Kmall24, which was opened in 2014 by Korean international trade organization. Based on the experience of foreign direct sales in global open market as step one, step two covers entering local shopping malls. Required needs are entering expense, website management, and foreign language consultation, however marketing expense is not needed. Step three covers establishing local platforms and starting up overseas direct sales. In step three, establishing foreign language shopping mall needs investment, website management, and foreign language counseling, which require marketing strategies. Foreign direct sales is different from foreign direct purchase, for the fact that decisions need to be made in the seller’s perspective, which comes with many disadvantages, and also calls for inspections on different ways to approach due to difference of environment between local community and foreign communities.