Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Hansae walks fine line on World Cup ambush marketing
FRJ Jeans' special edition Kkasi T-shirt / Courtesy of Gmarket
By Park Jae-hyuk
Hansae Chairman Kim Dong-nyung
By Park Jae-hyuk
Hansae has used the term, “Russia World Cup,” in its ad for T-shirts released just before the opening of the international football competition, despite FIFA's warning of heavy penalties against ambush marketing by advertisers lacking sponsorship agreements with the association.
Ambush marketing is a marketing strategy in which an advertiser “ambushes” an event to compete for exposure. It is often used to capitalize on major sporting events, without paying fees to the event's organizer to be designated an official sponsor.
FIFA has strictly prohibited such marketing activity, citing, “It puts FIFA's commercial programs directly at risk by trying to devalue official sponsorship.”
According to FIFA regulations, non-sponsors cannot use the word mark, “World Cup,” including its equivalent in all languages or scripts, because the word mark is protected as intellectual property.
An ad for the FRJ Jeans' special edition Kkasi T-shirts / Courtesy of FRJ Jeans
Hansae's ad, however, reads, “Let's cheer for the Russia World Cup with FRJ! Korea Fighting,” to promote the special edition “Kkasi T-shirts” collaboratively made by the company's two subsidiaries ― FRJ Jeans and Hansaedreams.
The T-shirts, released in six colors ― red, yellow, gray, navy blue, white and blue ― include a picture of a catlike character named Kkasi playing football and phrases that read, “Korea Fighting” and “Russia with Kkasi.”
“The T-shirts were made for the success of the World Cup this summer and to hope for the Korea national team's advance to the round of 16,” an FRJ official said, implying his company got a free ride on World Cup fever.
FRJ said it will also offer up to 50 percent discounts for customers who buy two shirts.
For now, it has yet to be known whether FIFA will claim damages against Hansae over its marketing strategy.
However, FIFA has shown serious concern over ambush marketers that take advantage of the goodwill and positive image generated by the World Cup without contributing to the organization.
“Companies engaging in prohibited marketing fail to appreciate that the FIFA World Cup is the result of FIFA's significant efforts to develop and promote the tournament, something which would not be possible without the financial support of FIFA's commercial affiliates,” the association wrote on its official website.
The official sponsors of FIFA reportedly pay at least $1 billion to use the official emblem and advertise in stadiums. Hyundai Motor and its sister company Kia Motors are the only two Korean sponsors of the 2018 Russia World Cup.