Catering to K-POP

Catering to K-POP

Thai brands are cashing in by signing K-Pop endorsement deals.

Thai teenagers' craze for Korean pop stars shows no signs of slowing down, leading more Thai companies to exploit this trend for product endorsements and marketing promotions.

Nattayoot Apiratikiat, managing director of TFS (Thailand), stands with a poster of Korean star Kim Hyun Joong at TheFaceshop store.

K-pop fever has fuelled the Thai market since the Dae Jung Geum series aired on Channel 3 a few years ago.
Osotspa Co, the distributor of 12Plus BB powder, is a consumer product that has exploited the trend to increase sales and build their brand awareness among Thai fans.
At least 15 Thai firms ranging from snacks, beverages, motorcycles, beauty clinics, contact lenses, cosmetics and candy use Korean pop stars as their presenters.
12Plus BB powder uses the Super Junior band for endorsement while Yamaha motorcycle signed stars from Tongbangshingi and 2NE 1. Super Junior's Dong Haee represents Maxim contact lenses and Scott sugar-free drink uses 4Minute, while Singha Corporation's Mashita seaweed hired Kyu Hyan, Lee Min Ho is a presenter for Dunkin' Donuts and T-MAX works for Wuttisak clinic.
TheFaceshop is the latest company to use Kim Hyun Joong, a famous Korean singer, in its marketing activities.
"It's really crazy here. Just by putting his image in our store, our sales could jump by 100% within only two months," said Nattayoot Apiratikiat, managing director of TFS (Thailand) Co, the distributor of TheFaceshop in Thailand.
TFS' latest campaign was to offer an autograph of Kim Hyun Joong for every purchase of 5,000 baht worth of TheFaceshop products.
"Believe it or not, the quota of 150 signatures was booked within two hours. It's beyond our wildest expectations," said Mr Nattayoot.
Sales of TheFaceshop in Thailand grew by 30% to 50 million baht in the first half of this year, about 20 million baht higher than its earlier projection.
TheFaceshop belongs to LG Health & Household, a branch of the electrical appliance manufacturer LG Group of Korea.
There are 26 TheFaceshop outlets in Thailand and the group expects the number to rise to 50 by 2014. Each shop requires an investment of 2.3 million baht and about 400,000-500,000 baht per counter sales. Seven new outlets will be added in the second half, including at Central Rama 9, Terminal 21, Central Plaza LardPrao and The Mall Bang Khae. The company expects sales of 90 million baht by the end of this year.
JB Kwak, TheFaceshop's overseas marketing team leader, said it plans to triple its overseas outlets to over 1,000 over the next three years, up from 356 outlets in 19 countries currently.
TheFaceshop expects its international market to grow by at least 40% per year.
"Even in Japan, which is known for supporting its local pop stars, K-pop fever has exceeded our expectations. We should be able to open more shops than we projected. At the Myeongdong tourist area in Korea, the top three spenders on our brand are Japanese, Chinese and Thai, respectively," she said.
Some 85% of TheFaceshop sales come from the local market with the balance abroad. The company aims to see an even sales split by 2014.