4 strategic points from Korloff’s boutique in Korean technotown Pangyo
In the first half of 2023, #Korloff, a high-end French #jewellery #brand, opened its boutique in #seoul. The brand made a deliberate decision to open its first store in Pangyo, a suburban area of Seoul that is quite distant from the centrally located branches of department stores. This choice appears to be a calculated and strategic move.
Pangyo, although geographically removed from the city center, is undergoing rapid redevelopment as a techno city. This transformation has attracted high-earning individuals, rendering the area an attractive place to reside. Pangyo benefits from excellent connectivity with the wealthy Gangnam district and the commercial districts of Yeoksam and City Hall, while offering a more ecologically friendly and peaceful environment. Furthermore, its proximity to Bundang, which houses some of the country's top schools, adds to its appeal for families.
Considering Korloff's status as a high-end brand, the decision to establish a presence in Pangyo still may seem somewhat unconventional. However, this choice can shed light on the company's broader strategic goals. Here are four key aspects to consider:
1. Targeting Local Clientele: By situating themselves away from centrally located department stores in Seoul, Korloff is explicitly focusing on local clientele rather than relying heavily on international visitors, who typically comprise the customer base for the more centrally situated stores.
2. Capturing the Younger and Wealthy Korean Population: The brand's decision to establish a store in Pangyo brings it closer to a younger and affluent Korean demographic that already possesses considerable purchasing power. With the digital age advancing, their buying potential is expected to further grow, making them a valuable customer base for Korloff.
3. Differentiation Strategy: Korloff's attempts to distinguish itself by opting for a different location, because centrally located department stores are congested with a similar selection of brands. By choosing Pangyo the brands works on its visibility for its target customers.
4. Expanding Strategic Positioning in Asian Markets: A successful establishment within the Korean affluent class can greatly benefit Korloff's positioning in other Asian countries, particularly emerging luxury markets like Vietnam, Malaysia, and Thailand. Building a strong reputation and customer base in Korea could create a positive halo effect and enhance the brand's prospects in these countries.
Additionally, Korloff's decision to capitalize on the image of Korea and Seoul aligns with the growing recognition of these locations as crucial components of the regional marketing mix for luxury brands. By associating themselves with the allure and reputation of Korea and Seoul, Korloff aims to leverage this image and further enhance its brand positioning and desirability in the luxury market.
#marketing #luxury #strategy #markets
Executive VP, Non-Executive Director
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