Even Amid COVID-19, TV and Bakery Brands Shined in Competitiveness

Korea Productivity Center Announces National Brand Competitiveness Index (NBCI)
Average Score of 236 Brands Across 66 Domestic Industries is 75.0...Up 0.3 Points from Previous Year

[Asia Economy Reporter Kim Cheol-hyun] Despite the ongoing COVID-19 situation this year, the competitiveness of domestic manufacturing and service industry brands has generally improved, according to a recent survey. Among manufacturing sectors, TVs showed the highest brand competitiveness, while bakeries led in the service sector.

On the 14th, the Korea Productivity Center (Chairman Noh Gyu-sung) announced the results of the National Brand Competitiveness Index (NBCI) survey conducted this year on 236 brands across 66 domestic industries. The average score for all surveyed brands was 75.0 points, up 0.3 points (0.4%) from last year's 74.7 points. The NBCI, developed in 2003, is a representative domestic brand competitiveness measurement index aimed at spreading brand value-oriented management mindsets and enhancing national brand value. Now in its 17th year, the NBCI survey and publication accurately assess the current brand value perceived by consumers and provide valuable information to predict near-future market conditions. The Korea Productivity Center leads the survey, with support from the Ministry of Trade, Industry and Energy.

Looking at the NBCI scores by industry this year, 30 out of 66 industries saw an increase compared to the previous year. Twenty-six industries maintained the same score, while 10 industries experienced a decline. Although the number of industries with declining scores increased slightly from three last year, the fact that nearly half of the surveyed industries (30) showed improvement is interpreted by the Productivity Center as evidence of domestic companies' efforts bearing fruit in enhancing brand competitiveness. In manufacturing, TVs scored the highest with 79 points, followed by electric rice cookers (78 points), large automobiles (77 points), women's cosmetics (77 points), clothes dryers (77 points), and tablets (77 points). In the service sector, bakeries led with 78 points, followed by international calls (77 points), multiplex cinemas (77 points), duty-free shops (77 points), and family restaurants (77 points), indicating high brand competitiveness.

Specifically, the average NBCI score for 36 manufacturing industries and 123 brands was 75.0 points, up 0.4 points from the previous year. Among the 36 industries, 17 showed improvement, 14 remained steady, and 5 declined. Notably, brand competitiveness for compact cars (2.7%), women's cosmetics (2.7%), and clothes dryers (2.7%) increased significantly compared to last year. Meanwhile, premium casual wear, ramen, air conditioners, water purifiers, and tires remained steady, while apartments (-2.7%), refrigerators (-2.6%), and large automobiles (-2.5%) declined. A key feature of this survey is that manufacturing brand competitiveness continued its upward trend this year. The overall rise in manufacturing NBCI is attributed to balanced increases in key evaluation factors: brand awareness (0.5%), image (0.6%), and relationships (0.7%).

Looking at individual manufacturing brand scores, Sulwhasoo (women's cosmetics) received the highest score of 81 points, followed by Cuckoo (electric rice cookers), Cass (beer), Accent (compact cars), Jeju Samdasoo (bottled water), and Sonata (mid-size cars), each scoring 80 points. The largest increases were seen in Sonata (mid-size cars) at 3.9%, Kyungdong Navien (gas boilers) at 2.7%, Morning (compact cars) at 2.6%, Galaxy S (smartphones) at 2.6%, and LG Whisen (air conditioners) at +2.6%.

In the service sector, which surveyed 30 industries and 113 brands, the average NBCI score was 75.1 points, up 0.4 points from last year. Thirteen industries improved, 12 remained steady, and 5 declined. Brand competitiveness for large supermarkets (2.7%), international calls (2.7%), multiplex cinemas (2.7%), and family restaurants (2.7%) increased significantly compared to last year. Conversely, rental cars, credit cards, banks, online bookstores, and TV home shopping remained steady, while non-life insurance (-1.4%), parcel delivery (-1.3%), high-speed internet (-1.3%), fast food (-1.3%), and convenience stores (-1.3%) declined.

Brand competitiveness in the service sector had stalled in 2018 after five years of growth but rebounded last year and continued to rise in this year's survey. The overall increase in service sector NBCI is attributed to the rise in brand relationships among the key evaluation factors: brand awareness, image, and relationships. The increase in brand relationships was the highest at 1.1%, with awareness and image rising by 0.5% and 0.4%, respectively, contributing to the NBCI increase. This indicates strengthened marketing activities. In fact, overall marketing activity levels in the service sector rose by 0.6% compared to the previous year. The telecommunications, lifestyle & culture, and distribution sectors, which influenced the overall NBCI increase in services, also saw rises in brand awareness, image, and relationships based on increased marketing activities.

Among individual service brands, Paris Baguette (bakery) ranked first overall with 81 points. The largest increases, ranging from 2.6% to 2.7%, were seen in Samsung Life Insurance, Lotte Mart, Homeplus, Emart Everyday, 002, 00700, ollehtv, Ashley, Outback Steakhouse, CGV, Lotte Cinema, and Shinsegae Duty-Free.

The Korea Productivity Center explained, "Overall, the general rise in NBCI across manufacturing and service sectors compared to last year can be analyzed as a result of many industries and brands effectively delivering customer benefits and value. This means that the information companies provide was efficiently or distinctively communicated during the customer reach process, leading to increased brand awareness and successful differentiation activities within similar branding."

This content was produced with the assistance of AI translation services.