Luxury Brands Take on K-pop Wave
Interview with Thomas Sommer, CEO of SG Entertainment.
- SG Entertainment is the first Korean entertainment company created by French producers.
- Special Guest on Arirang News : “K-POP SWEEPS GLOBAL STAGE: OUTLOOK IN 2021”
Q1. I understand you are originally from France and are running a startup in Korea at the moment. Please tell us about yourself, your background, and your company.
Answer : I'm the co-founder and CEO of a Seoul-based entertainment company called SG Entertainment. We are an entertainment agency focusing on creating luxury idol groups and producing high-quality artists to work with prestigious companies. In short, we are a luxury entertainment company.
As you already know, there are top European brands already involved with some famous K-pop groups. For instance, BLACKPINK is the pioneer of luxury ambassadorship, with all four girls being the face of some of the biggest brands in fashion including Chanel, Dior, YSL, and so forth. Nowadays, we even see rookie groups such as NewJeans, where the girls are very young, securing big brand deals. Our company goes even further by directly integrating the values of European luxury into our IP concept. This way, we can work with luxury companies right out of the gate.
Q2. As you are an expert in the entertainment industry and familiar with the luxury world, why do you think we are seeing so many collaborations between K-pop artists and luxury brands?
Answer : In today's current difficult economic climate, we have seen certain industries struggling and dealing with negatives impacts that make it difficult for companies to maintain themselves. However, there are two industries that haven't been impacted as much.
The first is luxury. High-end companies have seen record-high profits and stock prices, and as a result, they have been able to give incentives to their employees. The second industry is entertainment. Although it is not the same for every entertainment company, as some do better due to more interesting content, the entertainment industry overallhas not been as impacted as tech for instance. The similarity between these two industries is that they make people feel better about themselves through consumption, whether that is in purchasing luxury goods or consuming content such as music or television. This is the reason why we wanted to combine these two industries together; by connecting our idols with the French luxury brand market, we can forge and build a relationship where the two industries can feed off each other.
Although these brands have already worked with some K-pop idols previously, we believe that our vision will increase the value of the luxury brand market through the careful production of our idols, so that they are more in line with what the top brands are looking for.
Q3. Do you think K-pop artists can successfully raise awareness of Korean brands globally? Do you believe Korean brands have the same competitive edge as European brands?
Answer : I've been living in Korea for four years, so it's now like a second home to me. As a result, I've learned a bit more about Korean culture, and I'm certain that Korean fashion, luxury, and beauty products have the potential to garner worldwide popularity. Our purpose is to increase the visibility of Korean brands on the global stage, and keep them visible.
People mostly care about the image that accompanies a product; consumers care about how a product makes them feel. The perception of the quality of the product is more important than the quality itself. This is even true of tech products!
This is exactly where we as a company can globally promote Korean brands. In order to build this luxurious image, we spark the consumer's imagination by connecting the brand to a desirable story. This will allow Korean products to be competitive with European products on the international stage.
Q4. How would you compare the creation and growth of an idol group in Korea versus in the West? What are some of the differences you notice between the Korean and the Western fan base?
Answer : Typically in the Korean idol industry, trainees have to go through a long period of training before they can debut in an actual idol group. The reason for this is that Korean entertainment companies usually have high standards on who can become a star, focusing mainly on physical training aspects like singing, dancing as well as aesthetic and visual aspects.
Since we are targeting the French and the Western market as a whole, much of our strategy and training process is different from the typical Korean entertainment agency. Although we are still analyzing the physical capabilities of our idols, we focus more on other factors that a global audience would want from an idol group, such as their capacity to connect emotionally with the fans. Moreover, fans in the West have a tendency to put more focus on the process instead of the result. Therefore, we would really like to showcase the story of how a human idol group is made, instead of only highlighting the good parts and showing the final, image-perfect result.
Q5. I understand that it normally takes about 5 years to develop a K-pop group. How do you convince investors to get on board?
Answer : You are absolutely right in saying that. Investors seem to be more concerned about profitability during the current times.
Western (and especially French) fans want to understand how the group was made, where they are all from, and the hardships they had to face and overcome to achieve their dreams. The comments from the documentary we made were also extremely positive, and people were enthusiastic about being able to understand and relate to these trainees.
This kind of connects with what I had already mentioned previously. When you are building and creating content, you are essentially building a universe that people can project themselves and their own lives into. We are not just making a idol group; we are in fact creating a whole new "world" where people can see our idols grow and accomplish new things. People are able to explore this "world" through the songs, dramas, and other media content our idols are a part of.
Q6. I saw that one of your strategic advisors was a TedX speaker. What inspired you to invite him to join you in this process?
Answer : Will Fan is a serial entrepreneur acting as one of our advisors. He has already been involved in several companies and is extremely enthusiastic about the Korean entertainment industry in general. He is now advising the company and also helping with business relations, which I'm very excited about. Although his primary field is not entertainment, he is passionate and sees the potential in this industry. In order to successfully expand globally, we will continue to recruit talented individuals from various fields around the world to join the company as employees or advisors.
Q7. Before we wrap up, tell us about your main vision for your startup at the moment.
Answer : My company is very eager to build out our network. I'm always interested in discussing our project and vision further. Whether you're an investor, a trading partner, or a potential coworker, don't hesitate to reach out to LinkedIn or Website. I'd be happy to grab a coffee and chat.
Here's what I learned from this online interview :
1. In order for startups to be successful in reaching a global market, it is crucial that they understand the different perspectives and demands of their target audience.
2. Within our current difficult economic climate, investors are facing more and more risks. In order to convince them to invest in a startup, it is essential to clearly highlight its competitive edge and potential to grow in a global market.
3. Recruiting employees and advisors with global experience is vital for the global expansion of your startup. The more you expand your global network, the more talent you will attract from around the world.