Feature

Creating Lasting Connections: Lessons from South Korea for New Zealand Businesses

15 October 2024

Jack Keeyes, a member of the Asia New Zealand Foundation's Leadership Network and founder of Zoffee Ltd., a New Zealand startup developing a coffee alternative from native plants, recently participated in an international market immersion in South Korea. In this article, he explores the importance of building connections and creating memorable experiences for consumers, drawing on his experiences in South Korea to offer valuable insights for New Zealand businesses.

While visiting Korea, I joined a K-Pop dance class at one of the most famous studios in the country, got lost in the clouds of the Jeju Island volcano, and embarked on a traditional South Korean food tour in torrential rain.

The primary reason for my visit, however, was to explore how our business, Zoffee Ltd, could position a premium coffee alternative in the optimal retail locations of Seoul. What I took away, though, was an entirely unexpected insight, which I share towards the end of this article.

Placement Above Provenance

From multi-level supermarkets and luxury skyscraper malls to underground clearance halls and open-air night markets, I explored the vast array of shopping experiences in South Korea. My focus was on the premium end of the market, visiting stores that felt like works of art and niche supermarket sections showcasing high-end products from both South Korea and abroad.

What stood out to me was the clear stratification of product segments and the relative importance placed on brand and product placement versus country of origin. For everyday grocery items, it was more common to see country of origin labelling on both product packaging and in-store signage. Local shoppers explained that these labels helped them decide whether a product came from a country with a good reputation for safety and quality. This aligns with expectations and offers advantages to products from countries like New Zealand, where consumers are familiar with its high-quality reputation.

Product placement highlights the value of collaborative and aligned investment in ‘Brand New Zealand’ to important international markets. Image: Supplied

The colour palettes, fragrances, and on-trend styles for the season need to be aligned all-but perfectly to compete in the ultra-premium market, and require a consistent understanding of the dynamic consumer expectations and their real-time changes. Image: Supplied

However, in the genuinely premium market, country of origin was often relegated to fine print on the back of the packaging. Provenance was secondary to product placement and prestige. The focus was on aesthetics—whether it was the strategic lighting, ornate packaging, or the expansive display space, or even the layout of entire stores. In a market like South Korea, premium is taken to another level.

The influence of influencers

One of South Korea’s greatest international assets is its cultural exports: K-Pop music and dance, cinema, cartoons, and cuisine. The country has been curating its own national brand, associating itself with intensity, beauty, and ‘class’ to develop superfans around the world. Leading this surge of Korean culture are the country’s mega-stars, who are embraced and adored both at home and internationally.

Dozens of South Korean icons, particularly in the creative industries, captivate instant audiences of millions. Whether in posters in the underground metro or digital billboards on the 20th floor overlooking busy streets, the faces of these influencers – often endorsing products – were visible across all parts of the bustling city.

The ‘market-by-influencer’ approach wasn’t so pervasive that it became lost in the noise of mass marketing. Instead, it balanced subtlety with obviousness, revealing a strong and successful marketing technique that avoided overuse at the risk of losing its authenticity and exclusiveness. It presents an interesting opportunity for businesses to explore how they could access and leverage this influencer-driven world to promote a brand, concept, or perhaps even a country.

Celebrate at home to succeed offshore

Of the three insights I’m sharing, one was the most important for Zoffee Ltd in developing its early-stage scale-up. The impact was huge, but the concept simple – discovered through my two favourite food experiences.

Like many others, when I visit a new country, alongside the historical sights and scenery, food experiences are one of the top attractions that pique my interest.

I had a delicious Korean BBQ Black Pork at a beautiful restaurant, where a group of four of us cooked around our own sizzling grill. I can still vividly remember the experience – the sights, the sounds, the smells, and the flavours. The atmosphere was unique, our waiter shared stories about the product, and the taste far exceeded my expectations.

Street market in South Korea. Image: Supplied

I also walked down crowded streets filled with products featuring a special orange – from hats and T-shirts to drinks, perfumes, and chocolates. On Jeju Island, you’ll find a version of almost anything branded with their famous Jeju orange. What did this mean for me as a consumer? I tried at least half a dozen different versions of the Jeju orange and thoroughly enjoyed them all. I can still clearly recall the smile of a middle-aged Korean woman as I accepted her offer to taste a hand-made orange-coated fried chicken piece and then bought a full, dripping kebab stick.

Now, if I ever spot a pack of Korean black pork or a Jeju orange on a supermarket shelf anywhere in the world, I’ll be transported back to those moments. Whether 10% more expensive or 100%, I’d almost certainly pay the premium to relive that experience.

This experience highlighted an important lesson: competing for shelf space in a saturated market or heavily investing in influencers was not a sustainable strategy for expanding Zoffee in South Korea. Instead, the path to success lies in creating meaningful connections and lasting experiences for consumers, similar to those I encountered during my time in Korea.

New Zealand welcomes nearly three million tourists annually, many of whom return home with treasured memories. The opportunity for Zoffee lies in engaging with these visitors during their time in Aotearoa, offering them rich and memorable experiences rather than attempting to push our products in an increasingly competitive global market. There is already significant untapped potential in the way New Zealand provides immersive food and cultural experiences to its visitors.

In response, Zoffee’s new business plan is centred on delivering a destination experience. Visitors will have the opportunity to tour our native forest plantations, plant a tree, pick fruit, craft their own Zoffee, and learn about the te ao Māori principles behind our product and our iwi partnerships. Our aim is to provide an engaging, delicious, and unforgettable experience.

When these visitors encounter Zoffee back home—whether on a supermarket shelf, in an online store, or on a restaurant menu—we want them to be transported back to those special moments. They will choose Zoffee not only for its quality, but for the memories and emotions connected to their experience, fostering a genuine sense of premium value through connection and nostalgia.

-Asia Media Centre

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