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Korean firms’ brand awareness improves: Productivity Center

Sept. 17, 2014 - 20:52 By Shin Ji-hye
The state-run Korea Productivity Center published the National Brand Competitiveness Index for 206 major brands in 59 industries in the nation early this month.

The NBCI, an index that measures brand awareness, image and customer relationships, was measured based on companies’ marketing activities.

This year, the KPC gathered opinions on industries’ top brands from around 100,000 consumers ― both users and nonusers ― in major cities including Seoul, Busan, Daegu, Gwangju and Daejeon.

The Paris Baguette bakery cafe, Lotte Duty Free and Shin Ramyun, an instant noodle produced by Nong Shim, were selected as the best brands. 
A Paris Baguette bakery shop in Seoul

Also, 16 brands including Samsung’s Raemian apartments, Hyundai’s Avante and Sonata sedans, Lotte Department Store, SK gas station and the E-mart discount chain were selected as the No. 1 brand for 11 consecutive years in their respective industries.

The report said that this year’s NBCI index scored 70.3 points, up from 67.5 points last year, meaning that overall brand awareness of the nation’s industries has improved.

Forty-nine of the 59 evaluated industries saw a rise in the NBCI index this year. This is notable improvement from last year’s index, in which 73 percent of the total companies saw a drop.

Also notable in the report was that the brand awareness gap between the top company and the rest has narrowed significantly. This is because of a steady economic recovery and improved investment sentiment, which have given consumers a greater range of choices. “There are now more players ― instead of just one dominant company ― vying for the market. This trend is expected to continue down the road and more competition will be seen among different brands,” an official of the NBCI said.

By sector, the NBCI index for the nation’s service industry scored 71 points, up by 3.4 points from the previous year on account of aggressive marketing campaigns, according to the report.

Duty-free shops had the highest brand competitiveness, followed by home-study materials, international call services, department stores, online shopping malls and convenience stores.

The high brand awareness of duty-free shops is due to the rising number of overseas travelers and corporate promotions held through diverse online events, the report said.

They also improved shoppers’ convenience by expanding their branch offices nationwide, securing more goods and offering diverse payment systems.

In the service industry, consumers have shown a growing appetite for social commerce, online markets and online bookstores. Despite the country’s slowdown in domestic consumption, consumers’ demand for online goods increased mainly due to the easy access to smart devices such as smartphones and tablets along with the low prices.

In the manufacturing industry, the NBCI saw its average index rise by 2.4 points to 69.7 points this year.

Kimchi refrigerators had the highest brand awareness, followed by tablet computers, instant noodles, apartments, double-door refrigerators and milk.

Meanwhile, consumers have shown low purchasing activity for smart TVs and electronic rice cookers, which had high brand competitiveness.

The report said this is because of their high price, and the improved quality of their rival brands.

By Shin Ji-hye (shinjh@heraldcorp.com)