Hanwha VP sees progress through brand positioning

This is the first in a three-part series of stories analyzing Hanwha Group's positioning status and why pursuing better brand positioning matters in terms of the group's future sustainability. ― ED

By Kim Hyun-bin

Strengthening brand positioning is important for companies, because an effective brand positioning strategy can maximize customer relevance and even competitive distinctiveness in a brand's overall value.

Hanwha Solution Vice President Kim Dong-kwan

Marketing experts say the key objectives of brand positioning include relevance, differentiation and attainability. Of the three factors, it's fair to say differentiation is the most important and the key driver of positioning success, followed by credibility ― as businesses will die without it.

Hanwha Group has solid footings in the chemical-, life insurance-, and defense-related businesses. Over the last few decades, the group has long been embracing these legacy and conventional businesses as the group's growth drivers. But the group's emerging leader Kim Dong-kwan, the eldest son of Hanwha Chairman Kim Seung-youn, is trying to help the group find a better position in new businesses that haven't been explored before.

Kim, currently serving as the vice president of Hanwha Solution, an entity created through a merger between Hanwha Chemical, Hanwha Q Cells and Hanwha Advanced Materials. While the solar industry isn't looking good in terms of marketability, Kim is paying attention to strengthen the group's position in the solar business.

Hanwha's company image has been viewed as conservative and somewhat outdated in comparison to other leading local powerhouses. But after Kim served key positions in the conglomerate starting in 2010, there have been some noticeable changes within the group structure, with more investments towards future growth in renewable energy, especially in the lucrative solar business which has become a key cash cow for the conglomerate.

Officials say now more than ever, Kim aims to better position himself through Hanwha Solutions, as the global solar power industry is expected to show rapid growth in the coming years. In term of numbers, Kim's efforts were paying off as Hanwha Solutions increased its profit by 11.1 percent during the first quarter of this year.

It's too early to say whether the group's solar business is contributing or would contribute a lot for the group because Hanwha has to address a myriad of complicated internal outstanding issues such as how to cut the group's heavy dependence on defense-related businesses through effective communication.

But the vice president seems to be the mastermind behind Hanwha's swift decision to invest in the hydrogen market backed by strong profitability from the solar business, which is expected to become a major fuel source in the future.

Hanwha heavily invested in Nikola Motors, which has been dubbed the next Tesla, through which the company entered the hydrogen vehicle and infrastructure market. Earlier this month, Nikola announced it would be listed on the NASDAQ. In 2018, Hanwha invested $100 million in Nikola taking up 6.13 percent of the company. Just 18 months later the investment value rose to $750 million.

With the investment, two major pillars of the conglomerate's solar and hydrogen businesses are now under Kim's management, officials said.

Kim served as the link between Hanwha and Nikola. In 2018, when Nikola was just a venture startup company, Kim showed interest in the firm despite a dearth of information. According to Hanwha, Nikola has procured over 14,000 orders for its hydrogen trucks and will begin mass production starting 2023.

"From maximizing Hanwha affiliates' profitability we have created a foundation to enter the hydrogen market. From now on, we will work to become the leading company in the eco-friendly renewable energy sector through our solar and hydrogen businesses," a Hanwha official said.

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