Hyundai Duty Free Rebrand: A Case Study in Branding
Hyundai Duty Free Rebrand Showcases the Challenges in Getting Corporate Branding Right for Large Companies
Hyundai is a major Korean conglomerate with businesses spanning automobiles (Hyundai Motor Company) to consumer products. In Seoul, it has several department stores that are multi-story locations for the convenient fulfillment of a wide range of consumer goods like appliances, makeup, and clothing.
Hyundai is changing Hyundai Department Store Duty Free to a new name, now the Hyundai Duty Free department store. The corporate name will change from Hyundai Department Store Duty Free to Hyundai DF (“DF” as in duty free).
While the removal of the “Department Store” section of the name may appear to be a trivial change for some observers, it’s actually a practice in line with Hyundai’s history. Previously, the group renamed the shipbuilding business from Hyundai Heavy Industries Group to HD Hyundai.
Corporate rebranding as a topic often focuses on the splashy changes that go with an overhaul of corporate identity, such as Facebook’s swap to Meta and the accompanying criticisms. At the time, the move was seen as premature and lacking in authenticity, but those concerns seem to have been overstated as of now. Still, corporate rebranding of any type bears risks such as limited brand recognition and consumer confusion. There are also the practical concerns such as changing marketing materials, websites, and other promotional assets.
Hyundai’s intent with the simplification to Hyundai Duty Free is to improve brand recognition and brand awareness for both domestic and foreign consumers. The store’s business model thus relies heavily on those traveling abroad through Korea’s Incheon International Airport as well as Seoul’s Gimpo Airport.
My own analysis is that the move is linked with its attempts to reestablish these airport-based duty free locations as international travel has resumed in the years since the COVID-19 pandemic. Prior to the pandemic, travelers from around the world, especially mainland China, purchased large quantity of duty free goods before returning home on their flights at airports. Personally, it was surprising to see it in person at the time given the sheer number of products they would bring back. That number has since diminished as global brands have entered China and increased the availability of their goods, especially luxury products.
There’s also the Shilla Duty Free and other competitors at these airport locations. Hyundai Duty Free should be better positioned to compete with the other large company duty free locations due to the simplified name.
While in the case of Facebook, the Meta name was forward-thinking, here Hyundai Duty Free is simply changing its name to reflect existing capabilities. I think it’s an easy layup for the Korean firm to better defend its position in the duty free market and focus on travelers as well.
