In response to Connie Hsu’s Blog post: South Korean Companies Branded by Gangnam Style, I agree that Psy’s song, “Gangnam Style” has contributed to South Korea’s image globally. However, South Korean culture has already been increasing in popularity, dating back to 1990, when the “Hallyu” wave began. Along with the government trying to establish a national brand for South Korea, “Gangnam Style” is merely the catalyst that has ignited the awareness of South Korea’s culture globally.
As mentioned by Hsu, the overall success of the song can be observed by the increase in demand for Korean made products. South Korean companies are able use this advantage to market its products to foreign buyers. For instance, Amore Pacific, a South Korean cosmetics company, has experienced growth in China. This indicates that companies can expect growth in profit due to positive global associations with South Korea’s brand. South Korea’s brand has effectively been repositioned to create an identity that distinguishes it as being “a source of fun and hipness.” “Gangnam Style” has paved the way for opening up Korea’s industry to foreign investors—a feat that the government has been trying to accomplish for years.
American retail expansion into Canada will force Canadian retailers to step up their game. As the US has dominated Canadian music, television and fashion— retail markets are no exception. Major companies have been bombarding the Canadian industry with American owned stores. Customers will inevitably be attracted to new products and trends. Thus providing American retailers an advantage to market their products.
Target, a major American retailer, will be taking over Zellers store locations throughout Canada. This will cause Canadian retailers to be threatened by Target’s impact. Since Zellers is a retail of Hudson’s Bay Company, the elimination of store locations will force the company to assess and improve its supply chains. Hudson’s Bay Company has announced that it will be laying off 210 employees to increase efficiency and cut costs.
Hudson’s Bay Company’s retail stores target middle-income families and cater to various consumer needs such as groceries and clothing. However, Target is a close competitor in such that it will offer substitutes at a lower price. As a result, even the most patriotic Canadian would be tempted to switch their loyalty to American stores. This leads me to wonder: “Will American businesses be the dictators of Canadians in the future?”
India is one of the world’s largest populated countries experiencing economic growth yet it still faces an issue of poverty. The Indian government recently announced that it was opening its retail market to foreign firms. This change will impact employment and create structure in the retail industry. However, small shop owners and opposition parties feel threatened that major foreign investors will drive locals out of business. In protest, tens of thousands of shopkeepers have locked up their stores for strike.
One of the major challenges India faces is the lack of structure because the industry is made up of small businesses with limited practices. By bringing in foreign investors, it will open up jobs, ideas for innovation, and methods for sustainable practices.
Wal-Mart, a multinational company, is seizing the opportunity and becoming the first to expand into India. This will cause locals businesses that are unable to compete to shut down—adding fuel to inflation. However, new business strategies and the attraction of foreign investment will help to modernize the market to become more efficient.
In the long run, the decision to open the retail market to foreign investors will benefit society as a whole.
