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the case of @cosme

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Study of Opinion Leadership and Culture among youth in Japan through the case of @cosme (cosmetics website)

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the case of @cosme

  1. 1. Opinion Leadership and Culture among youth in Japan The case of @cosme
  2. 2. The concepts of Opinion Leaderships and Culture
  3. 3. <ul><li>the process by which one person ( the opinion leader ) informally influences the actions or attitudes of others. </li></ul><ul><li>The key characteristic of the influence is that it is interpersonal and informal and takes place between people who are not representing a commercial selling source. </li></ul>Opinion leadership
  4. 4. Culture <ul><li>The sum total of learned beliefs, values, and customs that serve to regulate the consumer behaviour of members of a particular society. </li></ul><ul><li>Culture is learned over time , and normally transferred through various social levels of interaction (Family, school and peers) which tend to form sub cultures . </li></ul>
  5. 5. Opinion Leaders and Culture… <ul><li>The relationship (often opinion leaders) reinforce the unique cultural values and/or attitudes of a selected group </li></ul><ul><li>Whereas such values or traits might be subjective, they often reflect a common trend . </li></ul><ul><li>In Japan, youth have increased in number and purchasing power => forming the basis for a unique cultural definition, with a unique consumption culture </li></ul>
  6. 6. An external influence Internal Source External Source + = Consumer Decision Experience, Knowledge, Memory Opinion leaders, Reference groups, Family, Social class, Culture
  7. 7. Presentation of @cosme
  8. 8. Introduction to @Cosme <ul><li>Website : Advice and shopping </li></ul><ul><li>Main users : Youth between 16-25 </li></ul><ul><li>Business model is mix between Community and infomediary (information intermediary) </li></ul><ul><li>=> Based on loyalty : High investments in time and emotion </li></ul><ul><li>=> exchange of voluntary and independent data which can be analysed to support advertising campaigns </li></ul><ul><li>Social networking => product and service reviews which help users make consumption decisions </li></ul>
  9. 9. What is “@cosme”? WOM based SNS website (especially about cosmetics ) Only in Japanese 200 million PV/month Advertise Selling Research Organize cosmetics community on website 1,350,000 members
  10. 10. What is “@cosme”?
  11. 11. Who are their target? Mostly young women who are interested in cosmetics
  12. 12. “ @cosme’s 3 key features” ① WOM based ranking
  13. 13. “ @cosme’s 3 key features” ②WOM based search engine Product picture Comments Rank by ★★★ Link to the online store of @cosme (come.com)
  14. 14. “ @cosme’s 3 key features” ③ Free question asking wall As there are 2,800,000/month unique users ask answer Get some points that can use for receiving samples of products
  15. 15. Also @cosme sells products web real Convenience stores
  16. 16. @ cosme thanks festa Experience professional make up Get some samples Specialists’
  17. 17. Marketing Mix Product Place Promotion What makes @cosme attractive? Price
  18. 18. Product (service in our case) <ul><li>product and service reviews around cosmetics mostly but other products could be included </li></ul>
  19. 19. Price <ul><li>Freemium pricing model </li></ul><ul><li>=> Because access and contribution to @cosme is free, i.e. no subscription, many youth are more inclined to use it </li></ul><ul><li>Their strategy is weakened by the limited number of physical stores </li></ul><ul><li>=> Perhaps this keeps their operational costs down and further permits freemium pricing for web usage </li></ul>
  20. 20. Promotion <ul><li>Different ways of communication via Internet </li></ul>
  21. 21. Promotion => Strengths <ul><li>Use mainly Internet : community website </li></ul><ul><li>Ex : </li></ul><ul><li>Events </li></ul><ul><li>Ex : once a year giving samples </li></ul><ul><li>On the products in cosmetics shops you can find sometimes the ranking </li></ul><ul><li>Trust because no partnerships </li></ul><ul><li>=> Objectivity </li></ul>
  22. 22. Promotion => Weaknesses <ul><li>No referenced on Google as an ads </li></ul><ul><li>Private circle for the events </li></ul><ul><li>No use of magazines => important media in Japan </li></ul>
  23. 23. Place <ul><li>On Internet </li></ul><ul><li>=> The main product is the website for advices </li></ul><ul><li>=> Huge mobility </li></ul><ul><li>Some stores well located in Tokyo </li></ul><ul><li>Ex : Shibuya, Shinjuku, Ikebukuro </li></ul><ul><li>=> But not well indicated, and limited number of physical stores </li></ul>
  24. 24. What are the specificities of Japanese Youth Market?
  25. 25. Dominant Japanese Youth consumer traits Loyalty to brands => Group Conformity Status => Desire to be recognized Trendy => Technology =>Sophisticated Powerful word of mouth => Collectivist attitude Conspicuous consumption => No responsibility + disposal income
  26. 26. Things you need to know about Japanese youth consumers… <ul><li>1. Short PLC </li></ul>
  27. 27. Things you need to know about Japanese youth consumers… <ul><li>2. Importance of product/brand recognition by others </li></ul>
  28. 28. Things you need to know about Japanese youth consumers… <ul><li>3. Word of mouth </li></ul>
  29. 29. Things you need to know about Japanese youth consumers… <ul><li>4. Consumption = Status </li></ul>
  30. 30. Things you need to know about Japanese youth consumers… <ul><li>5. Fulfilled needs </li></ul><ul><li>-> new needs must be created by marketers </li></ul><ul><li>(Consumers are no longer seeking to fulfill needs. New need recognition must be created by the supplier) </li></ul>
  31. 31. What does @cosme say about the Japanese Youth consumers?
  32. 32. @cosme as opinion leaders <ul><li>In the model of consumer decision making, @cosme is considered an avenue for opinion leaders . It is an external influence on consumer behaviour </li></ul><ul><li>The fact that it resonates a lot with Japanese youth means it is a symbol of consumer behaviour within this age group </li></ul><ul><li>Its model and choice of the marketing mix reveals some of these traits and cultural aspects towards consumer behaviour </li></ul>
  33. 33. … @cosme and Japanese youth… <ul><li>@cosme suggests Japanese youth as search buyers and risk averse : reduce any perceived risk in the consumption decision process. This is also suggestive of their insistence on quality … </li></ul><ul><li>The popularity of and reliance on @cosme also suggests a collectivist consumption attitude among Japanese youth : the need for group conformity </li></ul><ul><li>The majority of the reviews are around Japanese cosmetics and brands could be indicative of this age group’s trust in the quality of Japanese products and inclination towards ethnocentricism </li></ul>
  34. 34. Where next for Japanese Youth… <ul><li>Despite these suggestions of consumer behaviour of Japanese Youth through their use of @cosme, the tide might be changing </li></ul><ul><li>Researchers contend that there is increasing “ Americanisation ” of this consumer group in Japan </li></ul>
  35. 35. The example of Hip-hop Culture <ul><li>This can be seen in the development of the Hip-Hop culture (among others) in Japan, which has its roots here since 1984 </li></ul><ul><li>Hip-Hop culture (which is essentially American) exhibits itself in some Japanese youth’s choice of dressing, choice of music consumption and many times use of language. </li></ul><ul><li>This suggests that perhaps Japanese youth are becoming more global consumers than ever before </li></ul>
  36. 36. Conclusion <ul><li>But more interestingly, it might suggest a trend towards more “Western” consumption behaviour </li></ul><ul><li>Such behaviours are characterised by individualism as opposed to collectivism, greater independence and less group conformity when making consumption decisions, a slightly more risk tolerant attitude towards consumption thereby caring less what they rest of the “group” thinks about them. </li></ul>

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