New heights, new opportunities for KGM
/They say the hardest climb brings the best reward. The brand we knew as Ssangyong is set to start again.
WHEN in her early 20s, Daile Stephens (above) scaled one of higher peaks in South America that can be attempted without oxygen.
Mt Chachani had been under-estimated, but giving up on the 6057 metre ascent was never an option. And, of course, the most powerful singular memory from all that slog was the view from the central feature of that volcanic group in southern Peru.
Perhaps having a picture of that peak on her desk, along with a famous mountaineering quote - for reason that explains in this story, Carl Tobin’s “it don’t gotta be fun to be fun” seems most appropriate - might help feed the resolve that might well be useful fuel for this automotive marketing expert’s current challenge: Bringing the KGM automotive brand into full public acceptance.
How high? Well above where it used to be, as Ssangyong, that’s for sure, and for good reason.
Not only will there be more products under KGM, but the lead types will be more relevant. Electro-mobility, a place Ssangyong had barely begun to explore before falling into bankruptcy, is the revival priority for the company that effected its rescue.
KGM signing its deal to secure drivetrain and battery technology from BYD is a powerful signal; the Chinese giant recently toppled Tesla to become the world No.1 EV producer. KGM won’t have same capacity, but also intends BYD Blade tech to feed global masses, a big switch from its diesel dedication.
Battery intent fuels the first fruit Torres EVX (below) having been fast-tracked to New Zealand; to stand as a flagship to two petrols - one front-drive, the other with a on-demand all-wheel-drive - that, along with rebadged models from the Ssangyong era (Rexton, Korando in the main), will kindle KGM’s push here.
Next year, more Torres types: A hybrid SUV, a coupe crossover, a light duties utility, also a fully electric and adding a second electric motor to enable all-wheel-drive. An MPV is also in the wind. In-house replacements for Korando and Rexton are also en route.
Within two years, then, KGM will have a far broader choice than Ssangyong could ever muster, and is emphatically intent on achieving much more volume - the 2000 unit target within two years won’t bother the likes of market leader Toyota, but it’ll be four times last year’s Ssangyong volume and much closer to other ‘challenger’ brands like MG (6105 units in 2023), BYD (3715 units), and Haval (1888 units).
But only if KGM is noticed. That’s the next Chachani.
KGM NZ won’t share how much is being invested into marketing this marque, but the brash television and viral elements shared at last week’s Torres media event suggest that the local arm, Seoul and Inchcape, the British automotive investor that has long run Subaru NZ and added KGM and LDV last year, are not being shy on doling out the dollars.
Drawing attention to new-entrant brands is not easy; the automotive sector is crammed. As head of brand marketing for all Inchcape brands, Stephens, might well privately want to equate KGM as a dizzying granite cliff face requiring every climbing tool, ultimate fitness and pluck. She cannot wait.
How easy to change the audience focus to this “same but different” scenario? Potential to build on the predecessor brand is easy, she attests.
For all its almost two decades here, Sssangyong had surprisingly little brand equity. “We know that SsangYong does not over-index in any particular attributes … it doesn’t under-index in any particular attributes (either).”
Of course, Kiwi awareness of KGM is basically zero. Even in South Korea, it was low; KG Group has no long-term background in automotive. It’s background is in petro-chemicals and, quirkily, media. The ‘motors’ division only came into being when it stepped in to settle Ssangyong’s massive debt burden with South Korea’s banks.
Naturally, the always effervescent Stephens is putting a positive spin to it being a clean slate.
“We have a great opportunity to start a new branding chapter.”
How should Kiwis consider KGM? “KGM will stand for something moving forward and how we show it up in the automotive world will look a little bit different or quite a lot different to what this brand has previously.
“It will also look different to how everybody else shows up, but we will still make sure we are relevant to New Zealander,” she begins.
“Our business vision as KGM New Zealand is to cement KGM as the most disruptive career brand on New Zealand streets. So we are looking forward to sharing it.”
The pitch is summarised as three strategic pillars.
“We want to be ‘distinctive’, ‘disruptive’, and ‘desirable’. So we plan to set KTM apart from its competitors.
“Our plan is to define category conventions. So we might show up a little bit differently to what you are used to in the automotive industry.”
Stephens’ marketing acumen is well-respected; she’s been the driving force to establishing Subaru’s singularly bold status as an outdoorsy rebel marque here.
“Marketing is an art,” she explains. “It's also very much a science. We do a lot of research to understand perceptions around the brand.
“This helps inform, gives us insights from a customer perspective and also helps inform decision making moving forward.
“…KGM has no brand equity yet. So the teaser campaign only just launched in the last fortnight. So together as a group, we hope to build that brand equity. Of course, we're a big important part of that puzzle.”
Time has been tight. Inchcape only secured Ssangyong from the previous distributor, Great Lake Motors, six months ago; by then the KGM element was known as the factory intent to rebadge all fresh and old product under the new badge - which is the old one with very minor detail change (engineering cost probated anything else) - was cemented. Basically, if the operation was to continue, it had to start as KGM.
There has been little public comment about how the local handover went, but scuttlebutt suggests transition was a bit ... bumpy. Also, not all dealers have transferred to the new deal; of the 19 before, 12 have carried on in the sales role, a couple of the others maintaining parts and servicing. KGM says those who determined not to continue were mainly in quiet spots. But it is keen to develop a stronger network.
Resources are adequate, but there is a spending limit. “We don’t have the same deep pockets as what our competitors do with huge market share,” says Stephens.
“We need to show up in different ways to get cut through.
“We want to be the most disruptive car brand on the streets of New Zealand, which means that our enemy is the expected. We can’t do the same thing over and over again and expect the same result.”
One valued aspect is the high regard Kiwis have for South Korean-made products.
“Korean quality is well established in New Zealand, both through two other, well-known automotive brands, but also other brands like Samsung and LG.
“Leaning into this represents a significant opportunity for KGM in New Zealand and particularly given the volume of Chinese entrants that are entering into the market and will continue to do so.
“We think this is a real strength of ours to promote where we come from through who we stand for.”
Expect to hear more about ‘hallyu.’ It’s the ‘Korean wave’; basically the elements of the country’s modern hip culture through music, film, food and fashion.
A Kantar study the brand commissioned suggests Korean-made cars rank third behind cars from Japan and Germany when it comes to New Zealand consumer attitudes, and ahead of product from the United States, France and China.
Korean manufacturing is really well respected by New Zealanders … and interest in Korean culture is rising.
“We think this is a real strength of ours to promote where we come from,” says Stephens.
“We don't want to be like the other career manufacturers that you are all very familiar with. We want to use the interest in urban Korea as a springboard for us in terms of how we show up.”
Local launch adverts for Torres feature Korean music and imagery, alongside two new brand credos — ‘Korean Genuinely Made, Future Bound’ and ‘Crafted to Unexpected’.
Defining a target audience and who can afford KGM’s price, the likely consumer age and their income strength? That’s an industry 101.
“Then we need to add a layer in terms of what we call attitude statements.” For KGM, the ideal will be to target “people who see cars through a different lens, not about where it can take them, but what it can open their eyes to.
“We know that our audience are ready to try different products. They desire high quality products and they believe technology enhances their lifestyle.”
Often it's really hard to articulate why you like a certain brand over another one, Stephens says.
“It's a feeling and it's through the way that the brand has expressed itself … through brand positioning, brands establish their identity whilst also conveying their value proposition. In other words, it's why a consumer would prefer one brand over another.”
“We've identified a gap in the market … our positioning is to bring the vibe of ‘K’ culture to New Zealand streets.
“We want to bring that vibe, that energy, that artfulness of Korean culture to NZ. And we're going to have fun with this brand. No one else is doing this in the market.
“Essentially we're going to express ourselves and draw inspiration from Korean pop culture and that's how we're going to show up as a brand. And I think it's also really important to show this isn't necessarily literal, it's the essence.”
All this renders into a brand statement: ‘Crafted to unexpected’. Sounds a bit awkward? she concedes it will, but explains the wording is intentional.
‘Crafted’, she says, defines as “to make products with care, skill, and attention to detail. KGM vehicles have been crafted from both an engineering and design perspective very thoughtfully.
“Unexpected? Well, we are going to show up in unexpected ways to differentiate ourselves from our competitors.”
So, the ethos is that ‘crafted to unexpected’ is unexpected in itself. “Which does also make it distinctive. So the simplest way, I think an articulation to understand our brand platform is instead of crafted to perfection, KGM is crafted to unexpected.”