Secrets of Success South Korea

What is imagined when we hear the word "Korea" (South Korea)? Perhaps we will call Samsung, LG, Hyundai, or perhaps K-Pop lately is the trend in society. Korea is great, free nation in the same year with Indonesia and is still engaged in a cold war with North Korea is bolted into the Asian tiger. What is South Korea's secret of success? Why Japan is very concerned to Korea? To discuss it, Agus W. Magazine interviewed MARKETING Soehadi, marketing analyst and professor Prasetiya Mulya Business School.
Why Korean products can be managed in different countries?
The emergence of Korea was not a sudden, since the 1970's Korea has begun. At that Korea became an OEM (original equipment manufacturing) for the Japanese manufacturer. For example, they produce tires for Toyota cars needs, or supply other engine parts. When Korean companies began to develop the electronics, maybe they left behind 40 years from Europe or America. At that Korea produces only black-and-white TV. In the 1990s, the gap between the U.S. and Korea is almost non-existent. Even Korea is leading in some cases.
Why Korea can advance rapidly?
When the Korean independence GDP (gross domestic product) we are with Korea. Maybe you already know this. What's interesting about Korea, they have a lot of drivers, driving, battering ram. We have relatively few. We have the resources and not play, but the processing resources into something that is worth doing relatively little. Korea is different, limited resources, there is a threat from North Korea, that requires them to rise up and form a pattern of industry. One more thing of interest from Korea, huge education budget. If we talk of education is strong, they automatically appreciate the research and development / R & D (R & D). So the R & D budget they are also significant. The value of the Korean government's R & D 2.5% of GDP, and 8% of R & D performed by private parties. If we, 8% by the government. If the private sector is clear, how R & D can create value for the market. It may be the difference why they could expand significantly. And they were greatly feared by the Japanese. If the Chinese are not too afraid of Japanese products are not as significant as the development of Korea. If Korea really imitation Japanese when entering the European and U.S. markets. Japan initially offering low prices to take the U.S. and European markets. This strategy also made Korean.
They have a global brand such as Samsung, which is also owned conglomerate, conglomerate why Indonesia is not able to deliver a successful product in the global market?
Different direction, we are spoiled, they do not. We have the resources, they do not have. There's one more thing, they are very strong character to Achieve something, Korea felt to be better than Japan, have to work harder than the Japanese. Second, people appreciate the local products, we are lacking. If we look at Korea, they wear the majority of local brand because they are proud of the local brand. So, there are some conditions that make their companies can be more developed than local companies in Indonesia.
How do you see the role of the Korean government in building industry there?
The point is how to strengthen the company's first government, newly harvested, harvest. We have not been harvested nothing. Should the public, government, and corporations into one entity, then go ahead. So, there is that binds them. So, not for the benefit of class or group.
Is Korean companies are subsidized and protected government?
Initially maybe yes, but then do not, because if they are not subsidized will be able to compete. With the opening of the competition, would not want them to think should create value for the market. They are also not protected, because their own people are loving the products in the country. This makes them growing market. Population them a bit, so inevitably they have to export. Thus, the local market is not enough for them to survive.
What are the Korean leading sector?
They are leading in technology, whether it is automotive, electronics, and telco. This being the future of Korean industry. Why Samsung is strong, because their platform is very strong in the LCD market, used for LCD TV, telco, and computers. So, they actually choose which product platform is widely used by other industries. When they developed the steel, widely used by industry, so that production becomes large, when the enlarged production cost per unit becomes smaller, making them more competitive. The next phase to develop the brand. Now if we talk in terms of price Samsung in several categories already on the RIM and Nokia, this was because Samsung has the advantage in terms of cost of production. On the other hand, Samsung began to notice that the marketing side of a strong brand. When a strong brand, the price could be raised. It's a scary, so some Japanese electronics companies have collaborated since no strong against Samsung.
Is it possible for Korea will pass Japan?
Now it's number 4 in Asia, under China, Japan, and India. Thus, there is potential in that direction. If we talk of the electronics industry, some have mastered Korean brand. Of particular concern is the next by the Japanese automotive industry.
In terms of marketing, what is interesting about Korean brands?
They initially offered a cheap price with the quality and specifications of quality. Once the brand is strong, they raised the price. Initially Samsung cheap, so customer value increases, the price goes up.
Korean electronics products responded well by consumers in Indonesia, but apparently not so successful automotive?
Because Korean products are relatively new. Another problem here choice dealership. Coincidentally Japanese auto dealership owned Astra relatively strong. We do not know the future, if the automobile is not talking just to talk about the product, but also its after sales service. Japan worried about the Korean automobile because of the design and specification on offer, and the price is much cheaper.
Now there is the phenomenon of K-Pop culture is also popular in Indonesia. Why Indonesian people seem so easily accept Korean popular culture?
To be sure, what Korea has to offer is different from other cultural products. Do not forget, Korea is very strong in content. If we talk communication, one of the powerful countries to develop the content is Korean, so he can better understand the market. Because the content is consumed by the majority of consumers also worked Korea, whether it be through the media, fi lm, TV.
Some Korean companies utilizing smart enough Korean artists as their brand ambassador?
They are smart, the link is maintained well by them. Imagine Suju group to a concert two days in Indonesia. So, marketing is really the way. On the other hand, the increasing number of Indonesian singers who followed the trend of K-Pop may facilitate penetration of the Korean brands in Indonesia.
It may be a cliché question, what can be learned from the success of the Korean people?
In essence one, the strength of Korea is a character, nation building is strong. Second, militancy. Militancy becomes imperative for Korea, because North Korea could have done at any time to the South Korean aggression. Militants are high achievers, which makes the nation known as the workhorse of South Korea. Third, education is considered important for the South, the index of education in Korea to be one of the highest in the world. Fourth, capacity. If the capacity is adequate, just to talk R & D. Those who have a strong knowledge would not be satisfied with the product level, he's going to develop. Four things that make Korea's relatively advanced nation.