Samsung Joins Ranks of European Luxury Brands... Why Has It Failed to Capture the Hearts of the MZ Generation?

[Interview] Kim Seok-pil, Former Vice President of Samsung Electronics (Current CEO of Vivace Lab)

"Samsung has become the top brand that is treated as a luxury brand in Europe, not just a brand selling cheap products. The French subsidiary, which started as a small branch, has risen to number one in almost every sector including mobile phones, TVs, and home appliances. Samsung is still recognized as a luxury brand in the European market."

Kim Seok-pil, former Vice President of Samsung Electronics and current CEO of Vivace Lab, author of 'How Samsung Became a Luxury Brand in Europe,' said in an interview with Asia Economy that the title of his book represents his greatest achievement during his career. He served as head of Samsung Electronics’ UK and French subsidiaries and as President of Samsung Europe from 2005 to 2013, during which he elevated Samsung to the ranks of luxury brands in Europe.

Before Kim launched full-scale 'cultural marketing' in Europe, the market was dominated by Nokia and Motorola, which held the top two global positions. Despite Samsung’s technological superiority in all products such as mobile phones, TVs, and home appliances following the late Chairman Lee Kun-hee’s New Management declaration, Samsung had not yet joined the luxury brand ranks in Europe. It was judged that a strategy to continuously win consumers’ love and expand the market was needed.

Vice President Kim said that after much consideration on "how to capture consumers’ hearts," he implemented the 3P marketing strategy across Europe, summarized as Premium, Pride, and Passion Point.

First, Samsung actively promoted itself in places where luxury buyers gathered, such as high-end department stores and yacht shows. Between 2006 and 2011, Samsung installed around 200 TVs and premium AV (audio & video) products in five official residences of the British royal family, including Buckingham Palace and Windsor Castle, building trust through service. As a result, Samsung succeeded in obtaining the prestigious Royal Warrant certification in 2012. To captivate Europeans who take pride in 'football' and are passionate about 'culture,' Samsung expanded sports marketing by sponsoring Chelsea FC and developed branding strategies targeting major European art museums such as the British Museum, Mus?e d'Orsay, and the Louvre, making Samsung a more familiar brand. To reach French people who are passionate about cooking, Samsung actively engaged in 'cook marketing' by sponsoring cooking classes and partnering with restaurant guides.

Kim said, "My determination was to elevate Samsung, which was already first-class, to a top-tier luxury brand in Europe. People at the time probably laughed at this seemingly impossible goal, but we achieved results by delving into cultural marketing. It was a challenge made possible because we had confidence in our products."

Although Samsung succeeded in joining the luxury ranks even in geographically distant Europe, Kim expressed regret over the current reality where Samsung is failing to properly capture the hearts of the MZ generation (born early 1980s to early 2000s) in Korea. Currently, there is a strong perception in Korea that MZ generation uses 'iPhones' while their parents use 'Samsung phones.'

Kim said, "The basics of marketing are understanding consumers, but as traveling abroad has become easier than before, it is now more difficult to understand and empathize with the different sensibilities between generations than to promote Samsung to people in distant countries. It is a time when the 3P strategy needs to be adjusted to generational differences." He also pointed out that Samsung’s internal organizational structure, which is product-centered, makes it difficult to target younger generations.

He added, "Samsung’s internal organization is still divided by products and functions such as mobile and home appliances, and business leaders focus more on enhancing product capabilities than on marketing. Alongside technology and products, it is now necessary to understand consumers, culture, and to make efforts to discover consumers’ emotions."

Kim left Samsung in 2018 and is currently CEO of Vivace Lab, which discovers and nurtures startups. He said, "I wrote the book because I believe that my experience and network from the challenge of growing the Samsung brand can help startups and companies struggling with globalization. Korea now has a powerful cultural weapon called 'K-Culture.' I believe this is a golden opportunity to make the country a top-tier nation."

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