[Herald Interview] INSEAD professor explores power of K-brands’ ‘identity marketing’

The recent success of Korean brands can be attributed to their knack for selling "pieces of identities" and empowering consumers with curated experiences, according to a marketing professor at French business school INSEAD.

"Consumers today expect to purchase more than just products from a brand; they seek cultural and social elements. The swift execution of these elements has given rise to many successful K-brands," said David Dubois, an associate professor specializing in data-driven marketing at INSEAD, during a video interview with The Korea Herald on Tuesday.

Dubois' recent article titled, "Inside the Success of South Korean Brands," was published in the Harvard Business Review on June 20. There, he shares insights into the K-brand phenomenon, unraveling secrets behind the country's burgeoning brand power.

Dubois outlined four key strategies for K-brands' triumph: fast and fun discovery, immersive experiences, experiments through product life cycle and promotion through content creation.

As a marketing researcher, his most recent visit to Seoul last year provided fresh insights into how Korean brands are not only making waves locally but also reshaping global markets, from K-pop to K-food and beyond.

"I was struck by dazzling retail stores featuring catchy, short-lived art installations that trigger consumer curiosity street after street," Dubois recalled.

He highlighted how fashion brand store Ader Error's pastry shop Tongue Planet, opened side by side, enhances the brand's sensory universe through taste, and how cosmetics company Amorepacific's art museum boosts the brand's visual identity.

"In such way, Korean companies have mastered the art of blending style, innovation and quality to create immersive experiences that resonate with today's audiences."

Likewise, experience-driven marketing is pivotal across diverse sectors, citing the recent global success of food companies like CJ and Samyang, according to Dubois.

"Korean food companies that actively export products to the US and Europe offer stimulating sensory experiences, which explain the interest of the younger generation in K-food," he said. "The brands understand the power of creating not only fun but also 'shareable' experiences, leveraging viral marketing and social media to introduce unique K-flavors to the world."

Regarding the rising Chinese commerce and China's fast fashion brands recently sweeping the globe, Dubois mentioned that K-brands’ positioning is very different.

"Shein, for instance, is a big competitor for entry-level brands and ultra-fast fashion, but Korean brands, such as Gentle Monster, have totally different assets linked to customer experiences, higher quality and cultural value that stand out compared to potential competitors in China and Asia. In other words, they benefit from having a more premium positioning."

As for Korean e-commerce giant Coupang's recent acquisition of Farfetch in December last year, Duboi explained that it remains to be seen how Coupang will integrate Farfetch since high-end brands tend to maintain their own communication channels with clients. However, he highlighted how Coupang astutely recognizes the power of becoming a "cultural producer" as the next strategic move for long-term success.

"E-commerce platforms in the digital age need to evolve into media powerhouses to effectively disseminate content. Coupang has successfully integrated surprising elements in their content to attract online customers, which creates a promising synergy."

When asked about the challenges facing Korea's cultural power and K-brands, Dubois acknowledged potential hurdles such as demographic shifts and global competition.

"The landscape is evolving. As Korea navigates with social issues on one side, the other challenge now is to sustain this momentum while adapting to global shifts in technology and consumer behavior. Maintaining brand relevance will require continuous innovation and adaptation."