By Jane Han
Staff Reporter
Until two years ago, if an average merchandiser were offered two pairs of identical sneakers, one from the U.S. and the other from South Korea, he or she was willing to pay an additional $43 for the American brand.
It was also fine paying $47 more for a German pair and $40 more for the same product from Japan ― not owing to their quality, but to their brand values. This perception put Korean exports at a disadvantage in competing with global labels.
However, the trade and promotion agency's latest survey showed Wednesday that goods from Asia's fourth-largest economy have gotten an image boost, narrowing the gap with their rivals.
KOTRA asked 457 buyers around the world earlier this month how much they're willing to pay for a Korean product versus those from the U.S., China, Germany and Japan. Respondents said if a Korean label costs $100, they would pay $149.4 for German, $139.1 for Japanese, $135.6 for American and $69.2 for Chinese equivalents.
Products made from Germany were regarded as having the best brand value, followed by those from Japan, the U.S. and China. South Korean goods came in fourth, sandwiched between American and Chinese labels.
Despite the low ranking, however, the gap with top brands was narrower than in the past, while the price rift widened with Chinese goods.
American and Chinese brand values slipped due to the U.S. credit crisis and food safety issues in China, according to KOTRA's analysis.
It added that Korean brands showed off their most positive image in the U.S., Latin America and Europe, while they fell behind in the Middle East, China and Japan.
``It's significant that Made in Korea products are regarded much better now they were just two years ago,'' said Um Sung-pil of KOTRA.
He added that domestic companies should use this momentum to steer far ahead of China while catching up with Japan to avoid getting stuck in a ``sandwich situation.''
Economists and industry experts have often used the sandwich analogy to describe Korea's fear of getting wedged between high-tech rival Japan and rising competitor China.