Research firm expands operations here with new custom unit


Over the last couple years Korea Inc. has been caught up in a fierce debate over its capability to spearhead the kaleidoscopic global market for technology rather than remain a copycat.

While going-global firms such as Samsung, LG and Hyundai Motor enjoy their ever-expanding clout across continents, vocal critics including Ahn Cheol-soo pointed to their fundamental lack of innovation and creativity that give birth to products that customers would scramble for but never existed.

However, in the eyes of Laurence Michael, managing director of GfK SE’s custom research unit here, Korea is an innovation powerhouse on the verge of reshaping the technology world.

“When you look at the products being produced here, they are really dynamic and really leading edge,” Michael recently told The Korea Herald.

“I think that there are sometimes generalizations about their innovation from fast adoption. But I don’t really see it that way. I don’t.”

Having witnessed the Asian financial crisis while in Korea between 1997 and 2000, the 20-year marketing veteran was taken by surprise upon his return by a drastic shift in the mainstay of the economy toward high-tech industries.

Such economic dynamism, coupled with bold corporate investments in research and development, has driven Korea beyond a “fast follower,” Michael said, adding that is exactly why GfK wants to beef up its business here.

“Was there a gap 14 years ago? Yeah, absolutely. There was a huge gap (between Korean and leading multinational firms.) But I don’t see it any more. If there’s any, it’s small and closing,” he said.

“The marketers here are as plugged in to what consumers want as any marketers I worked with in the U.S. or Europe. And having that knowledge is really going to close the gap, which is how breakthroughs happen in technology. As long as these companies continue to invest in understanding customers and markets, they’ll continue to innovate and be successful.”

Operating in Seoul since 2000 with a focus on retail and technology research, GfK launched a new custom research division last month as part of a growth strategy in Asia, which aims to make its services relevant in fast-changing business environments.

The German-based company is the world’s fourth-largest market researcher, deploying 10,000 consultants in more than 100 countries.

“I think we’re a little bit late to come to Korea frankly, but we’re here now and really committed to Korea,” Michael said.

“We can combine two research areas. If you understand about market share and distribution, combine them with customer attitudes and your brand. That way we can provide new insights to the market.”

The marketing research sector has drawn keen attention as more and more corporate strategists, economists and industry experts seeks to identify business opportunities and challenges in the wake of rapid globalization, prompting specialization and competition between consultancies. Most leading multinational research companies including Nielson, IDC, Gartner and SurveyMonkey operate in Korea.

As for his own unit, Michael said he sets initial targets at business, technology, automotive and consumer studies based on strong research activities and partnership with academia.

“With customers having all the online platforms like social media, it’s becoming really challenging for brand marketers to understand how all those touch points are coming together in purchasing particular brands and making decisions,” Michael said.

“I feel quite good that we’ve got really good and cutting edge solutions that we bring over from Europe and North America.”

By Shin Hyon-hee (heeshin@heraldcorp.com)