Reversing trends

Reversing trends

Models unveil the Hyundai I. Onic, a nextgeneration electric vehicle developed by the Korean carmaker, at the recent Geneva International Motor Show in Switzerland. Hyundai Motor is hoping that the increasing popularity of its cars in developed nations like the United States and Europe will extend to success in Japan, the planet’s Mecca for car production. / Yonhap Hyundai leads list of Korean firms drooling over Japanese market By Kim Jae-won Considering the scale of human catastrophe, any attempt at economically exploiting Japan as it recovers from a devastating earthquake, tsunami and nuclear crisis would seem perverse. But that’s what Korean companies have been doing. Auto giant Hyundai Motor leads a group of Korean companies that have successfully expanded their presence in Japan in the past year, exploiting the softer competition after their Japanese rivals suffered temporary disruption in production following the disaster that struck the northeastern part of the country last March. Technology companies like Samsung also saw their sales rise and business partnerships with Japanese partners improve, while food and beverage makers are finding more Japanese customers for their bottled waters and other items amid increasing concerns over food safety in the neighboring country. While Hyundai has been expanding its market share in most global markets, Japan, the planet’s Mecca of auto making, had been previously considered off limits. After a dismal decade, Hyundai had retired from Japan’s passenger car market in 2009 as its products failed to compete with vehicles by local giants Toyota and Honda. However, the Korean company is now finding Japanese customers for its buses and even considering selling passenger sedans in Japan. “We are considering advancing into the Japanese sedan market,” said a Hyundai spokesman. Samsung Electronics has also vowed to expand its Japanese business, considering plans to acquire a Japanese retail company to gain access to the market more effectively, industry sources said. Mergers and acquisitions (M&A) could be effective ways to penetrate Japan’s notoriously complex web of distributors and retailers. Samsung Group, the parent of Samsung Electronics, is considering an organizational reshuffle to give its Japan-based subsidiaries more autonomy and freedom to pursue market opportunities. Previously, Samsung’s 18 Japan-based affiliates have been controlled by an umbrella unit dubbed Samsung Japan. Japan has been one of the few countries where Samsung has failed to stand out as local consumers snubbed its electronic goods in favor of local brands like Sony, Toshiba, Panasonic and Sanyo. Jeju Special Self-Governing Province Development Corp. (JPDC), well-known for its mineral water Samdasoo, has also increased its exports to Japan, which is keen to import clean water from Korea. JPDC signed an agreement to export 225,000 tons of Samdasoo worth 60 billion won for five years to Japan in November through its distributor GI Bio. JPDC began to export Samdasoo right after the March 11 Tohoku Earthquake and has increased the amount ever since.