In the automobile industry, consumers saw a wider range of new products integrated with innovative concepts and technology in 2016, resulting in an increase in the Korea Productivity Center’s brand awareness index by one to three points.

Hyundai Motor ranked at the top for the all six auto segments.

However, other brands are closely chasing after Hyundai in large vehicle and SUV sectors. 

It is expected that the gap between Hyundai and its competitors will get shorter as the industry moves to create newer models with high-end technology.

While the brand awareness for most of the subcategories under home appliances rose in 2016, South Korean companies will face many challenges ahead given that the local market becomes mature, while demand remains low.

Also, Chinese companies are becoming more globally competitive, and tech companies such as Google and Amazon are foraying into home appliances.

In consumer electronics, computer laptops are expected to see increasing demand with a growing number of tech companies introducing thinner and lighter models.

The smartphone sector will slow down as it reached a mature stage. However, KPC observed that it is still one of the most important subsectors in the electronics market.

Its survey showed that smartphones with bigger screens such as Samsung Electronics’ Galaxy Note series will continue to maintain a competitive edge. A lot more companies are expected to introduce bigger screen smartphones.

The brand competitiveness of the food and beverage industry improved slightly from 2015 mainly due to the growth of Nos. 2 and 3 brands.

The competition will become more intense as F&B companies are expected to introduce various products to meet diversified consumer demand.

In the beer market, Lotte Chilsung Beverage’s Kloud fueled the competition as it entered the market dominated by Cass and Hite, with more import beer brands being introduced.

The service sector

The brand awareness in the service sector, the financial industry ranging from banking, brokerages, insurance and credit cards, improved slightly.

Brands of life insurance companies and brokerages led the increase, while those of non-life insurance and banking companies saw a decline.

KPC said that the prospects for the financial industry is not so promising due to slow industry growth, low interest rates and increasing risks from the real estate sector.

Credit card companies will particularly see a tough year as they failed to adopt mobile payment technology services to meet the growing demand.

By Park Ga-young (gypark@heraldcorp.com)