Entry #9 20200622

Builders Globalize Brands for Overseas Expansion

By Jane Han
Korean builders aren't just building plants and paving roads overseas, but they're starting to hammer their way into the Southeast Asian residential development business with their star-studded apartment brands.GS Engineering & Construction is set to break ground this summer on its major Vietnamese project, housing some 17,000 units of new apartments, villas and townhouses. Investments are huge, but the builder says it is confident that its brand ``Xi'' and actress Lee Young-ae will help make a soft landing.``Similar to Korea, branding is important in other emerging Asian markets,'' said a GS official, adding that no matter how good a product is, it must be strategically boosted with an attractive marketing strategy.Kumho Engineering & Construction is now creating a new brand and signing on its brand model to prep up for its overseas debut.``We're looking for a model who can represent us both locally and internationally,'' said a company official, who also stressed the importance of models and brands in today's cutthroat competition.Construction firms have been finding it more and more difficult to sell apartments amid a local housing slump, heavier property taxes and tough lending rules. Government data shows that more than 150,000 newly built homes were left unsold as of the end of last year, which is the highest level since September 1995. ``Conditions won't improve anytime soon as a growing number of people are reluctant to finance their homes,'' said Kim Eun-kyung, a researcher at a real estate market information provider Speedbank. Breaking into the overseas market has been one solution to offset the slow business here, while attempting a brand transformation has been another. Daewoo Engineering & Construction, which fronts its signature brand ``Prugio,'' recently switched models from mature actress Kim Nam-joo to younger star Kim Tae-hee, in an effort to boost the brand's vibrancy.Such change is expected to trigger a domino effect among the foray of domestic apartment names, which typically fronts an attractive female celebrity to show and tell their features.``Many of the current models have been signed on for more than three years, so it's about time for a generation change,'' said Kim Woo-min, a creative planner at AdOne, a Seoul-based advertising agency.While celebrities usually get paid some 500 million won to 1 billion won, some critics say that the excessive marketing frenzy will only pass on costs to home buyers.

I think branding is very important in other emerging Asian markets, no matter how good a product is, it must be strategically boosted with an attractive marketing strategy. I hope Korean apartment builders to come up with some good strategies to import thier brands.