[Reporter’s Notebook] What Genesis Must Do to Become a True Luxury Brand

"We will completely rebuild the car's framework from scratch. Instead of fitting the car to existing materials, we will create materials specifically for the car and redesign it from the ground up."

In November 2015, Chung Euisun, then Vice Chairman of Hyundai Motor Company, announced plans to establish the premium sedan Genesis as an independent brand. This was a declaration to separate it from the headquarters and provide products and services on a different level, similar to how Lexus was created by Toyota. So far, this has been considered successful. Genesis receives the highest safety ratings in U.S. crash tests. Automotive magazines annually praise Genesis as the "Car of the Year." In August, cumulative global sales surpassed 1 million units.

So, is Genesis an independent brand? The Genesis division operates within Hyundai Motor Company under a structure of 4 offices and 7 teams dedicated to Genesis. In other words, it is an internal organization of Hyundai Motor Company. Overseas, Genesis operates like an independent brand. There are Genesis corporations in six countries: the U.S., Canada, Europe, China, the Middle East, and Australia.

There are 25 Genesis-exclusive showrooms in the U.S. Service centers also operate separately from Hyundai Motor. In the case of tow trucks for accident handling, even if there is a nearby Hyundai dealership, they only send tow trucks from Genesis dealerships, causing inconvenience to customers as they are treated as different companies. The brand’s first complex cultural space, New York Genesis House, has received positive responses as it offers Korean cuisine and traditional Korean tea, allowing visitors to experience both Korean culture and the Genesis brand together.

What about in Korea? There are currently only 4 exclusive showrooms and just 1 service center. There is no independent corporation. Consumers purchase Genesis vehicles at the same showrooms as other Hyundai cars. Maintenance is also handled together through Blue Link. Of the 1 million cumulative Genesis sales, about 690,000 were sold in Korea. Conversely, Lexus has established 29 showrooms and 33 service centers in Korea. Lexus owners receive maintenance services different from Toyota and purchase vehicles at separate showrooms, just as Genesis does in the U.S.

Now it is time to establish the Genesis brand identity. Currently, Genesis is Genesis itself overseas. But in Korea, it is Hyundai Motor’s Genesis. Premium brand-level customer experiences must be provided to consumers both domestically and internationally. It is unreasonable to offer premium services overseas but provide existing services to Korean customers for the same car. Along with efforts to catch more fish, it is time to manage the fish already caught.

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