INTERVIEW 'Innovation key to Tefal's success'

Groupe SEB Korea CEO Paeng Kyung-in introduces Tefal’s pot designed for Korean customers to cook instant noodles, during an interview with The Korea Times, July 26. / Korea Times photo by Choi Won-suk

Groupe SEB Korea chief sets eyes on bigger markets

By Park Jae-hyuk

Tefal has been regarded as a well-made frying pan brand among Korean consumers.

When its parent company Groupe SEB entered the Korean market, its “non-stick” frying pans gained huge popularity among Korean housewives, who had not used coated pans before.

Marking its 20th anniversary in Korea this year, Tefal has firmly maintained its top spot in the nation’s cookware market, without any threatening rivals.

Due to the stability, some people may have thought Tefal does not need to introduce anything new anymore.

In an interview with The Korea Times, July 26, Groupe SEB Korea (GSK) chief Paeng Kyung-in, however, emphasized that innovation is Tefal’s key value.

“A former representative told me that GSK is free from the risk of being boring, as it is always changing,” she said.

The female CEO is one of the founding members of Groupe SEB’s Korean unit.

When the French company opened the local branch here in 1997, she joined as a marketing manager for cookware, based on her experience of successfully launching Corelle dinnerware in Korea.

After six months, she also began marketing the company’s home appliances as well. Then, she worked as marketing director for 10 years and was promoted to sales director.

The businesswoman has been leading the local unit since September 2009, becoming the first Korean local manager of the 150-year-old firm. Paeng herself has also been together with the changes over the past 20 years.

“Tefal was not famous among Korean consumers 20 years ago, but I was attracted by the so-called Magic Hands, detachable frying pan handles,” she reminisced. “I was sure I could enjoy my job as a marketer at the company producing such innovative products.”

GSK has introduced Korean consumers to various categories of products, including not only cookware but also small domestic appliances such as blenders, irons, hairdryers, air purifiers, espresso machines and vacuum cleaners.

“We have taken the top spots in the grill, electric kettle and iron markets, although consumers may not regard them as our main items. Our hairdryer is included in the list of leading brands as well,” Paeng said.

“We sold the products under the brand names of Rowenta and Krups in the past, following the headquarters’ global policy. However, we decided to combine those brands into Tefal in Korea, considering its brand awareness among Korean consumers.”

After the changes, the products won larger popularity, according to Paeng. The recent-launched high-speed blender and cordless vacuum also use the brand name of Tefal.

“Keeping pace with the latest trends, we hope to foster both the cookware and home appliance categories,” she said. “We have also diversified product lines in the kitchenware category, launching a fritter tender, ladle, scissors, knife and cutting board.”

Satisfying Korea, Korean consumers

During the interview, the chief executive introduced Tefal’s pot as another example of the company’s attempts to diversify its products.

“We had actually focused more on frying pans, because we thought our coating technology was unnecessary for pots,” she said. “However, we realized coating is important for Koreans who cook soup in pots.”

Before introducing Tefal’s pots to Korea, GSK displayed its spirit of innovation, carefully surveying potential customers.

“Pots in the Korean market had been categorized according to their size and handles,” Paeng said. “So we decided to categorize pots according to their purposes, designing optimal shapes of pots, respectively, for instant noodles, soups and stews.”

For example, Tefal’s pot for ramyeon lacks screws on its lid. The lid is concave as bowl, so people can hold small amount of noodle and broth on it. Also, the pot has markings to gauge the optimal amount of water for one person or two. It is designed for people to easily drain water used for cooking Chapagetti as well.

The pots are exclusively sold in Korea, according to Paeng. They are now included in the list of top 10 pots, surveyed by Nielsen.

“When we discussed our plan to release an exclusive category for the Korean market with our consumers, one of them had doubts about it, claiming Tefal was a foreign brand,” Paeng said. “Then, other consumers unanimously refuted the consumer, saying Tefal always produces a better product than before.”

Pots are not the only products exclusively made for Koreans.

The company launched a grill whose plate lacks holes, so Korean consumers can cook roasted pork with seasoning. It also added a lid to its toaster for Korean consumers who are highly interested in sanitation.

“Korean consumers are particular about products. I always talk of the expectations of Koreans, when the European headquarters call me,” Paeng said. “We try our best to satisfy those expectations.”

However, the chief executive said the localization is not limited to products. The company has changed the whole process of its business here, including service, company culture, distribution, price policy and personnel.

“The Korean unit adopted its own welfare policies for employees,” she said. “It is true that products are important, but I think our competitiveness comes from localization of management itself.”

Businesswoman as mother

Serving as a representative of the company for nearly10 years, Paeng has become one of Korea's most famous businesswomen. Since the beginning of her career, however, her gender has always been the talk of the town.

“When I worked for Corning Korea in the early 1990s, I was the first married woman at the U.S.-based company,” she recalled. “Most women quit their jobs after marriage at that time.”

The difficulty was felt by not only rank-and-file workers but also chief executives then.

“A female CEO I know even considered leaving her office, when her babysitter quit,” Paeng said. “Fortunately, I could avoid such difficulties, as my mother and husband helped me a lot.”

Based on her experiences, she accepted GSK employees’ suggestion to adopt flexible working hours. Although the French headquarters and some Korean workers doubted about the plan, Paeng pushed ahead with the decision.

“I explained to the French headquarters that Korean companies care for the families of their employees,” she said. “The loyalty of employees to the company increased after that decision.”

The businesswoman, however, stressed that women have their own strengths.

“My personal networks with mothers help me come up with new ideas,” she said. “As a consumer too, I can also think about my business, while doing housework.”