TechnoKimchi

I predicted back in February that Apple will soar in Korea while Google will not in 2010. If you read various reports, I was pretty right on the nail. Literally, Apple is still soaring while Google is not. Now a question: then, which global brands do well in Korea and which ones don't?

Louis Vuitton. BMW. Apple. Chanel. Starbucks. Nike. In Korea, they are wanted.

Google. Walmart. Colgate. Sorry, no room for you, Mr. global giants.

What's the difference? Why do some global brands do so well while others simply miserably fail? I just came across an article last week that Google barely claimed 2.5% search market share in Korea, happily surpassing Yahoo! Korea for the first time (Yahoo! Korea marked 2.4% market share) Walmart went out of business. The majority of people in Korea don't even know what brand "Colgate" is.

While this might be completely oversimplified, here's my answer to the question: the ones in the first group make you look g-o-o-d. When you wear them or consume their products/services, you feel g-o-o-d. You feel even upgraded. Especially, to other people.

In Korean culture, which gives lots of weight and value to interdependence as well as harmony with others, your relationships matter more than anything. Most of the time, people just wanna look good to others. It's not just outer appearance I'm talking about, but also your "social status." You want to look good only if you can actually look "BETTER" than others. It's rather difficult to find Korean native brands in this industry sector where Korean brands do tremendously well. Korean brands, somehow, can't exert as much "class" power to Korean consumers. Many Korean brands in these industries even try to hide that they're Korean companies.

What about Google, Walmart and Colgate? Replace them with Naver, Emart, and Perio. What's the difference? These are brands for your everyday life and actually living it. Now, Korean people have our our own ways of living life; food, apartments, cars, streets, grocery shopping experience, etc. After all, this is a country with 5000 years of history. It's pretty darn difficult for global brands to penetrate into the more "real" lifestyles of Korean people because their global edges can't be precisely customized just to fit Korean consumers' tastes. When it's about living life, people want something that's "just about right."

Now, the dichotomy on global brands brings up an interesting question to the tech world: How will Android phones fare in Korea? We all know how Apple has swept through the Korean smartphone market and has generated some wild wakeup calls across in the entire industry. Now, with Google mightily struggling, does Android have any chance at all?

Possibly yes because Samsung and SKT are behind. It was KT that launched iPhone in Korea; ever since then, SKT has formed a strategic alliance with Samsung (both no.1 in Korea) to start an Android-based smartphone war in Korea. Samsung has already come out with Galaxy A and is coming out wit Galaxy S soon.

A new chapter in history? We'll see. Samsung is one of the best localized brands in Korea while Google is not. How would the hybrid work? I don't know.

Actually, I'm open to discussion here. What do you guys think?

Just to clarify for the TechnoKimchi readers, I just wanted to tell you that I live in SOUTH Korea, not NORTH, and the news article above indeed is happening in South Korea.

It's going to take a long time to explain the whole situation, but here's the gist of it:
Google told the Korean government "I'm sorry, but I'm bigger than you."

Yeah, the decision by Google came at a crazy cost: Google basically had to shut down its core Youtube services and say goodbye to all the government support it's been enjoying. (Korean government supported Google with over $1 million when Google Korean R&D center was founded and is also bringing quite a bit of cash to Google Korea by using YouTube as one of the government's main marketing channels.) This is a pretty big gamble for Google itself, obviously even more so for Google Korea. I'm sure the Korean government is feeling quite a lot of steam right now.

But you don't mess with Google. You do it, next day it's gonna be all over New York Times, CNN, BBC, or what not. Oh, did I forget to mention the Google Search? :) Heck, tons of people in the world won't even be able to tell the country that launched a rocket few days ago is not the same country making its citizens do this.

Not to bash my own government or anything, but there is a tectonic shift I see here. The Internet is so border-less now that it's going to be increasingly difficult for local governments to lay hands on it. For example, Google actually made a way for users to get by just by selecting "another country" on Youtube, even without having to physically be there. So as a government, ultimately you only have two options on the Internet: be completely closed (China and North Korea) or be completely open (many other places).

You can go even further and ask "what does it mean to be 'local'"? Being physically local isn't the only option of being "local" any longer. Are you interested in Canon digital cameras and want to meet the 5D lovers from all over the world on flickr? That's your new local. Interested in NBA? That's your new local. Should I call TechnoKimchi a new local? I'm not sure because there's too much physicality here.

Many have begun worshipping Google for its brave act and a nice punch. How this will all end up remains to be seen, but this was a very crucial step forward for the Korean Internet industry as all others basically gave in to the government. And this was possible because Google is both big and global.

Loic came to Korea for Open Web Asia and obviously he deeply understands what it means to have global presence on the Web: he's French, doing his business in the Valley, with lots of interests in Asia.

So here is my brief inteview with Loic. It's unedited, but the content is great :)

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(This post is cross-posted on Springnotes and also a re-writing of my previous post on Springnote and the Asian wiki market.)

I understand there are many of you guys that are located in the Asia/Pan-Pacific region and that are aiming for global markets. I'd assume your primary language for the service offering is probably English.

So I'd love to hear from you guys: What are the advantages and disadvantages of being physically located in Asia and going global (or Western for that matter?)

I guess another question would be if a service like Springnote is offered in Chinese, what's the chance of that doubling the market?

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