TVs top brand-awareness ranking

Models pose next to Samsung Electronics’ super ultra-high-definition (SUHD) television, in this February file photo. / Yonhap

By Park Jin-hai

TVs topped a major 2015 brand-awareness index on businesses ranging from carmakers to securities companies, posting nearly 10 percent growth.

In a National Brand Competitiveness Index (NBCI) survey of 223 brands conducted by the state-backed Korea Productivity Center (KPC), the TVs of two market dominant companies, Samsung and LG, came out ahead.

Duty-free shops topped the list last year.

Samsung TV led the way, with 79 points, followed by LG TV, which scored 76.

KPC said in a statement that Korea's TV market is witnessing a fierce competition between the two, which led to visible product quality improvement.

“Customers could see hardware improvement such as ultra-high-definition TVs, curved TVs, wide-screen TVs and bezel-less TVs, which pushed up those companies’ ratings substantially,” said the research organization.

It said although the product quality and innovation will still be valid in the future home appliances market, because the market has already matured, what different services companies offer will set their future course.

“Due to the protracted economic slump, customers are paying more attention to energy efficiency. The connectivity between multiple products and lifestyle changes, like the increasing number of single households, should also be considered important in developing products,” said the NPC.

Hyundai Motor’s Equus

The overall competitiveness of Korean companies has slightly improved, scoring 72.3 points, up 2.8 percent from the previous year.

The KPC uses the NBCI to encourage a brand value centered mindset, thus, stimulating goodwill competition among businesses and providing proper purchasing standards for consumers.

The NBCI is an index produced as a sum of brand awareness formed through marketing, brand image and relationship on a scale of 100. It indicates the area to be invested in by each company, identifies a level of brand competitiveness in the industry concerned, and improves brand competitiveness.

This year's survey, covering 62 industries and 223 brands, targeted 120,540 users and non-users in five metropolitan cities ― Seoul, Busan, Daegu, Daejeon and Gwangju.

Newly included industries for this year were dehumidifiers, and compact, sub-compact and large cars.

Gainers and decliners

In the survey, 44 industries posted growth compared to a year earlier ― TVs saw the biggest gains of 9.9 percent.

In the manufacturing sector, TVs, tablet PCs, ramen and boilers were picked among products as the most competitive. Bakeries, duty-free shops, open markets and discount stores got high marks in the services sector.

All top-tier brands maintained their leading positions this year, but it turned out the brand power gap between the top- and the bottom-listed company has slightly narrowed to 6.8 points, from last year’s 7 points.

The slow-paced economic recovery that started last year has made most companies invest more on marketing, leading to fiercer competition among multiple brands.

“What is noteworthy for this year’s survey is the growth of second-tier companies. While the industry top two brands’ average brand power increased 1.7 percent, the average brand power growth below the two posted 2.2 percent,” said the company.

As the gap between the top-tier and second-tier has narrowed, marketing that differentiates the brand from others has gained more importance, it said.

The automotive industry, where compact and large size sedans are newly included, has posted a 1 to 4 point rise, higher than other industries. In particular, the midsize sedan scored 4 points more and SUV, 3 points more than the previous year.

“Under a single brand automakers are launching diversified lineups ranging from high performance vehicles to hybrid models. Based on the product competitiveness, they are engaging in various communication activities to strengthen their brand identity,” said the company.

It said the Samsung Securities’ lead will continue for the time being as it has competitiveness in asset management with diverse financial products and differentiated services.

Nine industries had the same score as last year, while only four ― life insurance, convenience stores, international phone calls and duty-free shops ― had seen their scores go down.

The result was similar to that of last year, where none of companies on the survey had dropped in brand competitiveness. The KPC said that continued growth for two years in a row means local companies’ efforts to improve brand awareness has been finally coming to fruition.

In financial sector, life insurance lost 1 point, while securities remained the same position as last year, while the rest of the industries has reported slight growth.

The securities industry is under intense competition as various non-traditional market players have emerged in the market, offering financial services. Coupled with plunging commission rates, the market is seeing a perfect competition.

“As the boundaries between different banking services crumble, commission based profit-taking will give way to creating revenues from launching diverse financial products and services,” the KPC said.