Kodak revived without film
The Kodak brand, once a giant in the photography industry, is having a surprising revival, but not thanks to traditional film rolls but with a completely new business strategy - fashion.
The journey from giant to bankrupt
Kodak was once a giant comparable to Apple or Google today, with emotional advertisements that touched generations of American families. This brand created an empire in the photography industry and left a deep mark on popular culture.
However, as digital exploded – ironically a technology Kodak itself pioneered – the company fell behind and declared bankruptcy in 2012.
This is one of the most expensive lessons in business history about failing to adapt to technological change.
Today, the company’s Rochester, New York, headquarters employs just 1,300 people, down from its peak. Much of the 20,000-square-foot campus has been sold or transferred to cover debt and operating costs.
Smart brand licensing strategy
Despite struggles at home, a new empire is quietly taking shape outside the US, largely thanks to a clever brand licensing strategy.
The Kodak logo now appears on fashion items such as clothing, suitcases, eyeglasses, and even wall paint.
The brand has also expanded into hardware such as solar panels, flashlights, generators, and audio-visual equipment such as televisions, tape recorders, and binoculars. This diversification shows that Kodak is making the most of its brand equity in many different areas.
In 2024, Kodak's franchising activities will bring in $20 million in revenue, up 35% from 2019. Although this number is small compared to the peak of $19 billion in revenue in 1990, it still shows a smart "revival" strategy in the current context.
The majority of the company’s revenue now comes from commercial printing and film materials, while its brand licensing business is growing, with 44 partners globally, demonstrating a balance between core businesses and new directions.
The appeal of the Kodak brand to young people
In South Korea, the Kodak brand is particularly booming, with 123 Kodak Apparel stores selling its fashion line, and that number is still growing. Notably, there are no stores in the United States, reflecting the company's international focus.
Adrian Tay, editor of LinkedIn News Asia, wrote in a post that 'Kodak is now a rising fashion brand in Korea. This is not an April Fool's joke', reflecting the surprise and success of this rebranding strategy.
Amidst the bright signs on Seoul's bustling Seongsu-dong street, dubbed the 'Brooklyn of Seoul', the Kodak Corner Shop with its striking mustard yellow facade catches the eye of passersby. The area, once a run-down warehouse district, has become a trendy destination in the South Korean capital.
This two-story fashion store is always bustling with customers, with a sign reading 'Share Moments. Share Life' prominently displayed above the entrance - the same slogan Kodak used nearly 25 years ago when it was a giant in the photography industry.
Customers eagerly choose a variety of Kodak branded products, from shorts, t-shirts, caps, backpacks to maxi dresses and sandals. All carry the brand's signature red and yellow cross logo.
Kodak Apparel's rise coincided with the resurgence of film photography and the newtro trend in Korea, which combines new and retro styles. Many American brands such as National Geographic, Discovery, CNN and even Lockheed Martin have been "newtroized" here.
Behind the brand's success is Hilight Brands, a Korean company that specializes in acquiring copyrights for famous global brands.
Hilight Brands has expanded its Kodak Apparel network to Japan, Taiwan and China, demonstrating strong growth potential in the Asian region.
The company is also considering expanding into areas such as video games, smart homes and healthcare, showing its big ambitions in diversifying its business.
The story of Kodak today is a valuable lesson in adaptability and reinvention in business. From a company that almost disappeared from the market, Kodak found a way to leverage its brand equity to survive and thrive in a completely different world.
Though no longer a pioneer in the photography industry, Kodak has proven that a strong brand can weather crises and find new life in unexpected areas.
Kodak Apparel's success in Asia shows the power of nostalgia and emotion in connecting with a new generation of consumers.
