Korean consumers' attitudes towards organic labels and country-of-origin of organic foods
-
- Journal of Distribution Science
- /
- v.9 no.1
- /
- pp.49-59
- /
- 2011
Although the South Korean organic food market is in the infancy compared to other industrialized countries, Korean consumers'interest in organic food and retail stores devoting space to organic products have been rapidly increasing. Despite the fact of organic food popularity, the term "organic" is interpreted differently by individuals. As opposed to the US, Japan and the EU where have operated an integrated organic food labelling system, Korea has adopted complex organic labelling systems regulated by several different government bodies. As a result, complicated food labelling standards make consumers confused when purchasing organic foods. Furthermore, in terms of country of origin (COO), it is argued by a lot of researchers that COO effects vary from product to product and from country to country; moreover, other informational cues such as brand and price can influence COO effects. In modern society, COO labelling has been complicated, due to the sourcing, manufacturing and market locations of merchandise spread over the world. Accordingly, the evaluation of COO effects has become complex. In order to examine these issues, a quantitative research was selected to classify the commonfeatures of organic food consumers and construct statistics such as the extent to which people are aware of organic food and COO labellingvia a questionnaire which took place in two cities in Korea with a cluster sample of 161 organic food purchasers. As for the data analysis, one-way analysis of variance (ANOVA), T-tests, bivariate crosstatulations with Cramer's V were conducted,depending on the characteristics of variables and the assumptions the research data need to fit. It has been concluded that in general, Korean organic consumers comprehend the term "organic"in a closer way to the general concept rather than technical term, thus people do not appreciate environmentally labels which include organic food labels, although marital status influence the degree of label awareness, regardless of gender, age, education level and so on. Regarding COO effects on organic food, home organic products were Korean consumers'first choice over those from industrialized countries and developing nations. Specifically, in processed organic product category, domestically cultivated and processed organic products were absolutely preferred to leading national brands produced with imported ingredients and international brands. However, due to a lack of checks of ingredients' COO, consumers tend to purchase a leading national organic food brand, believing that it is a pure organic food sourced domestically. As a consequence, this research has suggested some important managerial implications and future research directions. In order to prevent consumer confusion when buying organic foods, it should be noted that consumers do not comprehend the organic food certifications, due to complicated labelling systems for organic produce and processed organic foods. Therefore, government bodies related to organic food distribution have to know consumers' perception of organic food labels and the significance of customer-oriented labels and reestablish labelling standards. Similarly, public advertising should be followed to raise public awareness of the labelling to enable customers to have the correct information. In addition, not only international marketers but also domestic marketers need to understand COO images and also the influence COO of ingredients has on the image of an organic product.
Despite the decrease in the number of children due to low birth rate, the domestic children's apparel market has been achieving steady growth as family income is rising thanks to more opportunities for working women, parents spend more on their children, and they prefer brand products that make their children look special. In addition, the market is suffering from hard competition as large enterprises have joined the race. The present study purposed to survey the children's apparel market in Korea, which is in a transitional period, and to contribute to the development of the market with Korean brands. For this purpose, we analyzed the characteristics of children's apparel brands in the 21st century based on the current state of the domestic children's apparel market and, based on the findings, forecasted the future trend of children's apparel brands, suggested improvements for expected problems, proposed standards for coping with changes such as diversification, high quality and differentiation in the children's apparel market, and provided consumers with information on how to purchase products. According to the result of analyzing the characteristics of children's apparel brands in the 21st century, brands are categorized largely into four types - life cultural brands, functional product brands, character brands and brands advancing to China. Life cultural brands equipped with all necessities for children are expanding, and with the deepening social problems of environmental pollution and the reduction of the child population, functional products made of environment-friendly materials are spreading widely, targeting infants and children. Furthermore, for extending age targets and diversifying products, children's apparel is using characters. The use of characters is expected to have a considerable effect on the growth of brands because children are more subjective as consumers than before and they are more easily persuaded with characters. Domestic children's apparel brands advancing to China have a high expectation of success in overcoming the limitation of the local market that has reached its peak and growing into global brands. Korean apparel makers are struggling to overcome the depressed domestic market, to recover consumers' consumption, to cope with market opening, to pursue high value of sensibility and to expand the seniors' market, etc. In this situation, future trends of children's apparel brands will be the expansion of family brands, brand totalization, quality price, niche market (pre-teen market), etc. In response to these trends, we made the following suggestions for improvement. 1. Children's apparel brands are evolving into family brands as well as into total brands through voluming. Today, however, apparel makers are advancing to the children's apparel market with the concept of adults' apparel and, as a result, children's apparel is merely adults' apparel of reduced size, having problems in design, color and materials. Thus, apparel makers must develop design considering the wide range of size and the characteristics of children's apparel, strengthen sourcing abilities to create revenues, and make thorough survey of customers to find common denominators between adults' apparel and children's apparel considering that characteristic that the target class is different from the buyer class. Furthermore, they must make active investments in human resources, develop outstanding products through advanced planning and design, and support marketing techniques and management systems to stores. 2. As the declining birth rate will continue to have a negative effect on the market, it may be difficult to expand the market size but there is still a margin for growth through high-sensibility and high-quality products. The competitiveness of brands is determined by their market shares. Accordingly, concepts should be specialized according to lifestyle, customers' diverse needs should be satisfied, and cross-coordination should be achieved within a brand. 3. Considering Korean parents who do not spare investment in their children despite shrinking consumption, functional products must be high value-added goods that can enhance efficiency. However, in the current situation of the infants' apparel industry where a textile manufacturer supply its products to multiple brands, it is difficult to develop unique products only based on materials. Thus, it is considered urgent to appeal to consumers not by relying on materials only but by finding methods of applying their own characters to children's dress.
There is much speculation that modern capi-talist society is undergoing fundamental and qualitative chnge towards flexible specialization. The purpose of this study is to examine this hypothesis. This paper focusses on: the idea of flexible specialization; the significance of this transition; industrial district; and the implicati-ons of this new production system for Korean industrial space. Main arguments of this study are as follows: First, as all different groups of researchers apply the idea of flexible specialization according to their own specifications, the current debate on this topic is not much fruitful. Not surpri-singly, the concept of flexible specialization has overlapped with subocontracting. This intergration of subcontracting into flexible specialization systems, however, is inappropriate because the two concepts have different historical contexts. The other cause of this controversy is its inherent weekness, conceptual ambiguity. Thus, today's flexibility becomes tomorrow's rigidity. Secondly, transition towards flexible speciali-zation has only been partially achieved even in advanced capitalist countries. The application of dualistic explanatory framework, such as rigidity versus flexibiity, mass production versus small-lot multi-product production, and de-skilling versus re-skilling, has resulted in great exaggeration of the transformation, from Fordism to post-Fordism. There is no intermediary part between two places. Considering that the workers allocated to the Fordist mass production assembly line are not as large as one might imagine, the shift from mass to flexible production has only limited implications for the transformation of capitalist economy. Thirdly, 'industrial district' contorversy has contributed to highlighting the importance of small firms and areas as production space. The agglomeration of small firms in specific areas is common in Korea, but it is quite different from the industrial district based on flexible specialization. The Korean phenomenon stems from close interactions with its major parent firm rather than interactions between flexible, specialized, autonomous and technology-intensive smll firms. Most Korean subcontractors are still low-skilled, labour-intensive, and heavily dependent on their mojor parent firms. Thus, the assertion that the Seoul Metropolitan Area adopts flexible specialization has no base. Fourthly, the main concern of flexible speciali zation is small firms. However, the corporate organization that needs product diversification and technological specialization is oligopolistic large corporations typified by multinational corporations. It is because of this that most of these organizations are adoptiong Fordist mass production methods. The problem of product diversification will be resolved naturally if economic internationalization progresses further. What is more important for business success is the quality and price competitiveness of firms rather than product diversification. Lastly, in order to dispel further misunderst-anding on this issue, it is imparative that the conceptual ambiguity is resolved most urgently. This study recommends adoption of more speci-fied and direct terminology (such as, factory automation, computer design, out-sourcing, the exploitation of part-time labor, job redesign) rather than that of ideological ones (such as, Taylorism, Fordism, neo-Taylorism, neo-Fordism, post-fordism, flexible specialization, peripheral post-Fordism). As the debates on this topic just started, we still have long way to go until consensus is reached.