[News articlefrom“The Korea Economic Daily“]

 Product trial center at 2700 stores in 70 countries around the world 

“Hit!”Ceragem sells the product only to the customer who experienced it.

600,000 visitors a day! Business is growing in Argentina rapidly.

40 billion won in sales from South America this year.   

“I am sorry. But we don’t sell the product if the customer did not try it. Why don’t you try the product and experience the effect.”The employees of 11 Ceragem centers in Buenos Aires, Argentina have to say this word to the customers who visit their centers.

 

The employees tell the visitors who do not have timeto try the product to come back again saying, “Please come visit us again at your convenience.” All 30 automatic thermal massagers placed at Ceragem center are used by visitors during the business hours. Each center has about 350 people visitors a day in average. Ceragem started business in Argentina in 2008. Ceragem made 6 billion won in total saleslast year in Argentina with this marketing strategy.  

 

 

 

 

○“We sell the product only to the customer who experienced it.”

 

 

Health Care Company Ceragem (CEO Lee, Whan-seong) is creating sensation in the world with its unique “Trial Marketing”. Ceragem’s main product is automatic thermal massager. The jade projector emitting far-infrared ray rolls from the cervical vertebra to caudal vertebra and massagesthe spine with heat (30~60 ℃) and pressure. Ceragem explained “This product raises up the body temperature to strengthen immunity, relax tensed muscle and relieve stress.” 

 

 

Ceragem has been practicing “Trial Marketing” at 2700 Ceragem centers in 70 countries around the world since its first opening of overseas business center in Chicago, USA in 1999. Ceragem has applied the same marketing strategy to South America. Ceragem sells the product only to the customer whois satisfied with the effect after using the product at least 30 times (over 1 month). 

 

 

About 600,000 people visit the Ceragem center globally. The visitors can experience the automatic thermal massager for 30 minutes for free every day. 

 

 

The reason that Ceragem has been practicing “Trial Marketing” for over 15 years is to emphasize the purpose of the product is to strengthen the natural healing power of our body such as pain relieving, stress reduction, immunity improvement ,not to cure the diseases. 

 

 

Ceragem reinforced “Trial Marketing” with emerging market as a center such as India and South America when the sales from China which was 50% of total overseas sales dropped from 260 billion won (2009) to 170 billion won in 2011. Ceragem’s sales has successfully bounced backthis year making 200 billion won of total sales. 20% of sales was generated from South America such as Argentina, Mexico and Peru. 

 

○ Effective localization strategy! 

 

 

Ceragem pursued localization very actively inSouth America since 2008. The company hired many local employees and had the Korean employees learn Latin dance and song. 

 

 

The employees explained the principle of the product to the customer one on one. They explained the principle of Ondol culture of Korea and stone therapy of western culture to help the customer’s understandingabout how the product works. The customers who were not familiar with this kind of experience started showing huge response as they became more comfortable and reliable with the service and product while experiencing the effect. 

 

 

Director, Kim, Ik-gyun in charge of Argentina marketing said,”People from South America are very optimistic and they like outdoor activity a lot more than other countries. People introduced Ceragem to their friends and family enthusiastically. We had big success through word of mouth in South America.”

 

 

Ceragem’s sales goal for this year is 250 billion won. The company is planning to increase the center from 11 to 20 in Argentina.