Specialized Markets Drive Innovation and Growth of Traditional Markets
- Division
- International Cooperation Division
- Date
- 2019.05.03
- Writer
- 국제협력담당관
- Headline
As the project to foster “specialized markets,” which has become one of the most notable measures to transform traditional markets, marked its sixth anniversary this year, it was found that the project greatly contributed to the revitalization of traditional markets.
According to the “Research on the Status of Store Management at Traditional Markets and Shopping Districts” announced each year by the Ministry of SMEs and Startups (MSS), the revenues of traditional markets that had been on a continuous decline started to show an upward trend from 2014 and continuously posted an increase for four consecutive years ever since.
* Number of Customers (100 million): (2014) 18.0 → (2015) 19.1 → (2016) 19.7 → (2017) 20.0
* Revenue (KRW trillion): (2005) 27.3 → (2013) 19.9 → (2014) 20.1 → (2015) 21.1 → (2016) 21.8 → (2017) 22.6
Such a rebound shown in the revenues of traditional markets is considered meaningful given that it was achieved through the combination of autonomous efforts continuously made by merchants and various policy efforts to improve the facilities and environment of traditional markets and support the development of contents.
The specialization of traditional markets was mainly driven by over the 10% growth in the number of customers and revenues each year as specialized markets significantly contributed to creating a positive image of traditional markets and improving customer satisfaction.
* Yearly Changes in Revenues (%): (2014) 7.1 → (2015) 10.6 → (2016) 12.9 → (2017) 14.5 → (2018) 16.3
* Changes in the Number of Customers (%): (2014) 10.9 → (2015) 12.8 → (2016) 14.3→ (2017) 14.2 → (2018) 14.4
Since 2014, the MSS made a change in its supportive measures, from focusing on supporting hardware improvement, including the facilities of traditional markets, to supporting software-related aspects such as the convergence of local culture, arts, and tradition as well as a service enhancement.
The MSS also established a bottom-up support system with a development process of “First Step → Cultural Tourism-Type → Regional Lead Market” in line with the standing and capacity of each traditional market, and helped maximize the unique characteristics and advantages of markets that specialize in local resources such as history, culture, and specialties. By the end of 2018, it has supported the specialization of 498 (23 Global/Regional Lead-Type, 215 Cultural Tourism-Type, 202 Street-Type, and 58 First Step-Type) traditional markets (accounting for 29.4% of the total of 1,693 traditional markets and shopping districts).
Recently, the MSS successfully established a joint growth model by collaborating with large enterprises such as the “No Brand”, joint growth store of E-mart. This collaboration led to a revenue increase for the entire market and became a key project that drives change and revitalization of traditional markets.
* After the setup of “No Brand”, joint growth store at Dangjin Traditional Market: (Revenue) 10% increase (Number of Customers) 40%–50% increase
Minister Park stated that while projects to support the improvement of hardware, such as facilities and parking lots through recent developments in traditional markets, is important, “another hope could be found in the changes made to the markets and reinvigoration achieved through the specialization project.”
She also said that the MSS will “develop a variety of joint growth models by expanding partnerships with the private sector, including conglomerates, while developing and providing various specialization models aimd at regaining the vitality of traditional markets by expanding the setup of youth complex mall, supporting the manufacturing and sales of local specialties, and renewing the design features of outdated buildings.”
Meanwhile, the MSS plans to select and announce 85 specialized markets of 2019 by May 7.
According to the “Research on the Status of Store Management at Traditional Markets and Shopping Districts” announced each year by the Ministry of SMEs and Startups (MSS), the revenues of traditional markets that had been on a continuous decline started to show an upward trend from 2014 and continuously posted an increase for four consecutive years ever since.
* Number of Customers (100 million): (2014) 18.0 → (2015) 19.1 → (2016) 19.7 → (2017) 20.0
* Revenue (KRW trillion): (2005) 27.3 → (2013) 19.9 → (2014) 20.1 → (2015) 21.1 → (2016) 21.8 → (2017) 22.6
Such a rebound shown in the revenues of traditional markets is considered meaningful given that it was achieved through the combination of autonomous efforts continuously made by merchants and various policy efforts to improve the facilities and environment of traditional markets and support the development of contents.
The specialization of traditional markets was mainly driven by over the 10% growth in the number of customers and revenues each year as specialized markets significantly contributed to creating a positive image of traditional markets and improving customer satisfaction.
* Yearly Changes in Revenues (%): (2014) 7.1 → (2015) 10.6 → (2016) 12.9 → (2017) 14.5 → (2018) 16.3
* Changes in the Number of Customers (%): (2014) 10.9 → (2015) 12.8 → (2016) 14.3→ (2017) 14.2 → (2018) 14.4
Since 2014, the MSS made a change in its supportive measures, from focusing on supporting hardware improvement, including the facilities of traditional markets, to supporting software-related aspects such as the convergence of local culture, arts, and tradition as well as a service enhancement.
The MSS also established a bottom-up support system with a development process of “First Step → Cultural Tourism-Type → Regional Lead Market” in line with the standing and capacity of each traditional market, and helped maximize the unique characteristics and advantages of markets that specialize in local resources such as history, culture, and specialties. By the end of 2018, it has supported the specialization of 498 (23 Global/Regional Lead-Type, 215 Cultural Tourism-Type, 202 Street-Type, and 58 First Step-Type) traditional markets (accounting for 29.4% of the total of 1,693 traditional markets and shopping districts).
Recently, the MSS successfully established a joint growth model by collaborating with large enterprises such as the “No Brand”, joint growth store of E-mart. This collaboration led to a revenue increase for the entire market and became a key project that drives change and revitalization of traditional markets.
* After the setup of “No Brand”, joint growth store at Dangjin Traditional Market: (Revenue) 10% increase (Number of Customers) 40%–50% increase
Minister Park stated that while projects to support the improvement of hardware, such as facilities and parking lots through recent developments in traditional markets, is important, “another hope could be found in the changes made to the markets and reinvigoration achieved through the specialization project.”
She also said that the MSS will “develop a variety of joint growth models by expanding partnerships with the private sector, including conglomerates, while developing and providing various specialization models aimd at regaining the vitality of traditional markets by expanding the setup of youth complex mall, supporting the manufacturing and sales of local specialties, and renewing the design features of outdated buildings.”
Meanwhile, the MSS plans to select and announce 85 specialized markets of 2019 by May 7.