[Inside Chodong]The Brand Was Not Remembered

Platform-Centric Distribution Marginalizes Brand History and Philosophy
Low Prices and Fast Delivery Take Priority
Brands Need Strategies Beyond Platform Convenience

"I bought it on Coupang, but I'm not sure about the brand. I'll just send you the link."

The friend who promised to recommend a cost-effective product only shared the product link. The product was definitely sold, but the brand was forgotten. This is a scene frequently witnessed in a platform-centric distribution ecosystem.

The domestic distribution market has been reorganized around major platforms such as Coupang and Naver. Consumers are now more focused on "how cheap and fast the delivery is" rather than "where and what to buy." In particular, Coupang has transformed brand loyalty into platform loyalty with the convenience of its "Rocket Delivery" service. Consumers purchase products, but what they are really consuming is Coupang, not the brand.

Platforms offer convenience to consumers but force sellers into a lowest-price competition. The history, quality, and philosophy of a brand are pushed aside under the standard of "the lowest price." Products become just another line in a list of nameless items, and brands lose their points of contact with consumers. Furthermore, platforms do not share customer data with brands. Brands end up supplying products without knowing "who chose them, why, or in what context." Brands lose both data and strategy.

Nike was one of the first companies to recognize this crisis. In 2019, Nike voluntarily ended its contract with Amazon, which accounted for half of its online sales. The decision was based on the belief that "if you cannot control the relationship with your customers, a platform-centric distribution strategy has its limits." Since then, Nike has redesigned its customer touchpoints around its own online mall and directly managed stores, accumulating customer data independently. As a result, its profit margins improved and the number of loyal customers increased.

Dyson, a premium home appliance brand from the United Kingdom, took a similar path. By directly managing the entire process from product experience to after-sales service through its own online mall and directly operated stores, Dyson became a "brand that sells without discounts." The company managed to protect both its brand image and customer trust.

Korean companies are also taking action. Amorepacific and CJ CheilJedang, for example, are strengthening branding strategies centered on their own online malls. Rather than simply serving as sales channels, these companies provide personalized services based on customer data and offer exclusive benefits for their own malls to secure loyal customers. This strategy ensures that consumers remain customers of the brand, not just the platform.

Not every brand can escape from platforms. For small and medium-sized brands with low recognition and limited initial capital, joining a platform is directly linked to survival. However, "using a platform" and "being dependent on a platform" are different. In the former, the brand is the goal and the platform is a means; in the latter, the platform becomes the goal and the brand becomes expendable. If this distinction is not made, the brand will eventually disappear from consumers' memories.

The true asset of a brand comes from its direct relationship with customers. Brands are not remembered by consumers simply as "products that sell well." Platforms are merely a means of distribution and cannot replace a brand's identity. If a brand fails to connect directly with consumers, it will inevitably become just one of countless products in a platform's search results. Brands that settle for the convenience of distribution cannot become memorable. To protect a brand's name, a strategy that goes beyond the platform is essential.