World Ch. Schedule : WED 09:05 KST
* Date : 2016-11-16
A few years ago, a new type of Hallyu surfaced as Korean companies began using Hallyu as their marketing strategy to successfully enter foreign markets. However, this new rise of Hallyu as an economic engine was not the only factor behind their success in the global market.
China, Indonesia, and Vietnam have shown remarkable growth despite a slowdown in the global economy. China started making its transition from the world's factory to the world's market, and Vietnam and Indonesia are attracting various global companies with low labor costs. They are FTA and TPP members and their open policy makes it possible to achieve rapid development. And often, Korean companies utilize their strong motivation for development to enter foreign markets. They turn these countries into new manufacturing bases and continue moving forward.Let's look at some of the Korean companies and examine the secrets behind their success among global competition.
# Using Hallyu marketing and "Little Emperor" phenomenon
One Korean education company established its branch in China to educate preschoolers and elementary school students. China's one-child policy gave rise to "Little Emperor" phenomenon in which parents generously invest in their children's education. And realizing this, the company strategically entered the Chinese market. Many Korean companies analyze the demands of foreign markets before entering them. And they greatly benefited from Hallyu. The Korean beauty industry, in particular, successfully marketed their products by using Korean celebrities as their models. People's positive views on Hallyu played a role in creating good images for Korean brands and products. This is the tremendous power of Hallyu.
# Rising from a culture to a company brand
However, companies cannot solely rely on Hallyu. Hallyu is limited to K-drama and K-pop. And even though it stirred people's interests in Korea, there is still a long way to go until Korean consumer goods become a part of local people's daily life. The companies' survival depends on localization. In Asia, local residents play a role in both consuming and manufacturing products. This means that the Korean industry's survival is in the hands of the local residents.
# From being a brand to becoming the face of Korea
Over 70% of Vietnam's population is made up of young people under the age of 40. So it's easy to see Korean advertisements targeting Vietnam's younger generations. Vietnam is well known for its rapid development. Also known as the next China, it is Vietnam's goal to become the world's 2nd factory. In order to attract young Vietnamese customers, Korean companies often use positive image of Korea. Let's take a tour to these Korean factories and examine which direction they should take.