Topic for Mar. 20. ( Thur )

[Alex !]

Market Image 

1.

KD Navien selects Chef Edward Lee as new advertising model, replacing Baek Jong-won.

Boiler specialist KD Navien announced on the 11th that it has selected Chef Edward Lee as the brand advertising model for its kitchen appliance brand, Navien Magic, which will be launched this month.

In fact, KD Navien initially intended to use the representative of Theborn Korea, Baek Jong-won, who is both a broadcaster and a franchise entrepreneur, as the advertising model for Navien Magic. However, with recent controversies including the 'bakham' and allegations related to Chinese-made fermented soybean paste, it determined there was a risk in utilizing Baek as a model and ultimately selected Chef Lee.

For high-priced products, consumer trust is crucial. This is greatly influenced not only by quality but also by the advertising model promoting the product. If a model lacks credibility, consumers are less likely to purchase the product.

This is the reason why corporations invest considerable expenses to hire well-known figures with high levels of trust as advertising models.

By the end of last year, it decided on representative Baek Jong-won. Following the airing of Culinary Class Wars, Baek's popularity as a restaurateur and culinary researcher was immense, making him the optimal model to promote the new kitchen appliance brand from KD Navien. 

However, the 'bakham controversy' erupted in mid-January, causing a significant drop in the trust and good image that Baek had built over time. While his credentials as a professional culinary researcher remain unchanged, consumers appear to be turning their backs on him.

In response, KD Navien initiated a review of its advertising model. They looked to Chef Lee, who gained popularity alongside Baek in Culinary Class Wars. He is a Korean American chef born in New York, known for building his recognition in the U.S. He is the winner of the 2010 Iron Chef America and has served as a White House state dinner chef.

His spirit of challenge and authenticity, demonstrated in Culinary Class Wars by combining Korean and Western food cultures, resonated with consumers, and he is currently receiving love calls from the domestic food industry.

KD Navien cites 'the original culinary philosophy and spirit of challenge that merges different cultures' as the background for selecting Chef Lee as an advertising model. They believe that this aligns with the originality and spirit of challenge pursued by Navien Magic.

Now Theborn Korea stock price has been falling since listing. The reason why its stock price continues to fall is not only because of the sluggish domestic economic slowdown, but also because of its own negative factors that continue to occur. It seems like a owner risk.

2.

Retailers halt Kim Soo-hyun advertisements amid relationship allegations

Actor Kim Soo-hyun is facing scrutiny in the retail industry after allegations surfaced that he was in a relationship with the late Kim Sae-ron. Although Kim Soo-hyun's side stated that they would take legal action regarding these allegations, they are closely monitoring how public opinion may shift.

the vegan beauty brand 'Dinto' has suspended its modeling schedule with Kim Soo-hyun. An Ji-hye, the representative of Dinto, noted, "All employees have been confirm‎ing the facts and discussing the response direction," adding that "all scheduled plans related to the model have been put on hold". K2 Korea is said to have removed all photos of Kim Soo-hyun from its official website K-Village and its official Instagram.

Other retailers using Kim Soo-hyun as a model are also in a quandary. Kim Soo-hyun is currently active as a model for over 10 brands, including Eider, Shabu All Day, Dinto, Homeplus, Shinhan Bank, Tous Les Jours, Cuckoo, Prada, and Jo Malone London. A representative from the retail industry stated, "We plan to decide whether to halt advertisements and how to modify future plans after monitoring the public sentiment."

Companies pay marketing costs on celebrities' images. If the image is damaged, it will inevitably affect the company as well.

They would have selected Kim Soo-hyun, who has a large number of female fans through dramas and movies, as a model to target female consumers, and the allegations would have been a burden for companies in a situation where women were angry.

It has already been reported that CJ Foodville Tous Les Jours stores have replaced their advertising posters with photos of new products.

The outdoor brand 'Eider' and the restaurant brand 'Shabu All Day' have removed Kim Soo-hyun's photos from their official websites and social networking services (SNS).

Controversies over advertising models can lead to damage to their brand image, so companies are continuously trying to cut ties quickly.