Housing market of South Korea had developed from supplier-oriented market based on high demand due to the chronic housing shortage. For the huge increase of housing distribution rate, housing constructions had developed rapidly. But, as the housing ma...
Housing market of South Korea had developed from supplier-oriented market based on high demand due to the chronic housing shortage. For the huge increase of housing distribution rate, housing constructions had developed rapidly. But, as the housing market bubble burst due to IMF economic system, a new change was required and through this, the market was able to restructure as a consumer-oriented one. Thus, in order to face the economic change, construction companies had no option but to put great effort and set up advertisement strategies focusing on the consumer-oriented housing development.
This thesis is to study the changes through the analysis of printed advertisements starting from 1990 until the next 20 years based on Chosun Ilbo. It is important to examine the changes by understanding what caused to set up differential strategy of apartment brands and classifying in elements. In other words, as the housing market has changed to consumer-oriented from supplier-oriented, apartment ads are delivering more and more information gradually. The element trends of apartments are as below.
To begin with, the concept of apartment ads has first appeared after the 1990s when massive amount of apartment was provided to people in a short period of time. Through ads, consumers were able to have an opportunity to maximize their utility by differentiated choice and get a new home to live at. Other than that, apartment ads became an important standard of the society.
Secondly, when classified in a period of time, there are some differences in the apartment ads. Before when the housing sale price deregulated, advertisements and announcements had only provided simple and basic information. However, as the deregulation of sale price took place, apartment ads and images have gone under some changes since consumers focused more on the quantity such as a better living environment. This process had allowed the market to establish apartment brand names by emphasizing their own grand and luxury image.
Third, after the deregulation of housing sale price, differentiated and new style of housings appeared - architectural plan for block and floor - for those who hold various individuality and taste. Since then phrases from advertisement dealing with competitive price, lower price have appeared as well. Through this, one could learn that economic value has become a decisive element when purchasing an apartment.
Prior to the thesis, the apartment ads were categorized into three main keywords-architectural, housing and urban-in order to examine the elements. Each element was subdivided to analyze the advertisement contents in detail. Also, according to the frequency ratio of ads shown, it was able to consider their important status. This enabled one to understand the changes that advertisements had as time passes.
First of all, the architectural element to provide an affluent life in unit is emphasized by general information. Also, it tends to strongly emphasize the characteristics of each construction companies on the value and premium of the brand. Besides, the unit plan and environmental elements are also regarded importantly. Therefore ceaseless efforts are necessary to develop the limited space and to provide differentiated unit.
Secondly, green space and facilities are being stressed as it cause the housing complex to be eco-friendly and self-sufficient. From this perspective, it implies that one can have easy access with nature inside or nearby the apartment complex. Other than that, differentiated brand strategies are appearing as residents create their own living culture depending on their exterior space and community life.
Lastly, architectural elements are no longer shown in ads, but hold strong potential to become the standard of economical property and social stratum. As apartments gain economic efficiency gradually, it indicates that the region has a potential to develop in the future. Likewise, the tendency to stress convenient daily living and economical value to consumers has not changed much in the past 20 years. Brand premium has been providing such value as well.
As the housing market became product competitive, it was the newspaper advertisements that became a useful method for market share. Korea's five representative construction companies were chosen for the research with the range limited to the ads of 20 years. This was to analyze their unique strategy of architectural elements of brand apartment from the beginning of their movement until today.
As a result, each brand tempted to make their own differentiated strategies by various ways to be unique and special. However each brand element holds difference in detail, but overall, it can be said that they do not differ much. Under the social and economical flow, construction companies seem to be leading changes of housing market by introducing similar elements but with different names. However, it implies that the range of change is too tightened at present.
Through this thesis, it is expected for the brands of apartments to develop diverse strategies and improve their own characteristics and specialties. With a different concept from that of the past, brands today provide a true living space. In the future, they would enhance the value of apartment, which could lead a real innovation.