Gyeonggi-do company offers plenty of opportunities to small and medium sized enterprises by online and offline events as well as TV home shopping.
The Korea Gyeonggi-do Company (GGD) has been helping local small and medium-sized enterprises (SMEs) to navigate the economic fallout of COVID-19. Gyeonggi-do has a high concentration of SMEs active in various fields varying from agriculture to technology.
Gyeonggi-do will continue to support SMEs under all conditions and the GGD was founded to help local SMEs find firm market footing and reach new customers. GGD is utilizing different sales and marketing strategies to help these businesses navigate the tough economic climate of 2020.
Korea Gyeonggi-do Company
With the highest concentration of SMEs in South Korea, Gyeonggi-do is in a special industrial and economic position. The province has the benefit of fostering new and innovative businesses; however, this position also creates the necessity for solid support programs to help SMEs establish themselves in increasingly competitive marketplaces and reach customers both inside and outside Korea — as these companies may not have the resources to hire experienced professionals dedicated to marketing and sales. Concurrently, small businesses are being hit harder by unexpected changes in the economy, such as the fallout of the COVID-19 pandemic.
The Korea Gyeonggi-do Company was established in November of 2016 with the goal of alleviating the burden of distribution, sales, and marketing from SMEs so that they can put greater focus on the development, and manufacture of high-value products.
The GGD’s goal is to help SMEs maximize their revenue streams, which will eventually strengthen the local economy and job market.
Support Programs for Small & Medium-sized Enterprises
The Korea Gyeonggi-do Company has a variety of support programs for small and medium-sized enterprises. These programs are structured to help SMEs with design, marketing, distribution channels, and foreign market access.
Among its various support programs for small and medium-sized enterprises, the GGD provides online and offline sale channels, bringing the products of Gyeonggi-do’s SMEs to the right consumers.
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The online support includes helping the companies sell their products on major Korean e-commerce platforms, sales through social media channels, and more. Offline sales channels can range from regional markets to large chain supermarkets.
Success of the Korea Gyeonggi-do Company
In 2020, the Korea Gyeonggi-do Company has undertaken various measures to cushion the blow of COVID-19 economic fallout. A combination of appropriate marketing techniques and distribution channels can help benefit both small businesses and consumers, maximizing both side’s benefits.
Success on Social Media
In line with current sales and marketing trends, the Korea Gyeonggi-do Company is conducting successful campaigns that market and sell SME products through social media channels.
On social media, users form communities around shared interests. Social media offers virtual spaces where they can exchange information, remain updated, and find like-minded friends. With the correct marketing approach and transparency, these communities can be valuable distribution channels for the promotion and sales of SME products. Online communities make targeting easier and, through ethical marketing and sales approaches, have the potential to become loyal customers.
For example, the Korea Gyeonggi-do Company conducted a successful car mat sales campaign equivalent to KRW 200 million in value. The campaign was conducted through an automobile community on Naver (a portal website that operates some of the most popular social media channels in South Korea). The campaign was part of the GGD’s efforts to expand its online sales channels. The car mats offered are produced by VSENTIUM, one of Gyeonggi-do’s top SMEs called.
Members of 7 different online automobile clubs were targeted and offered a bulk purchase deal. The benefit of a bulk purchase deal is that it reduces the price for the consumer and so the campaign received a very positive response; it was considered a win-win deal for all parties involved.
Similar campaigns were held on other channels such as Instagram, Kakao Story, and Naver Band where other goods, such as food and household goods, were offered through bulk purchase deals. During the first half of the year, total campaign sales reached KRW 1 billion. This time, the campaigns were aimed at female heads of households who tend to manage the purchase of food and household goods. In the future, other products, such as cosmetics and health foods will be offered for bulk joint purchases through these channels.
Excellent small and medium-sized enterprises' products at Gyeonggi-do Baraji Market
Sales at Siheung's Baraji Market
Another successful sales channel has been through a warm, modern, cozy space called Baraji Market. This year, the sales of Baraji Market tripled with the help of marketing strategies that emphasize regional taste and specialties.
Baraji Market is the name of a unique market that was founded in Siheung City in 2017. It is a physical sales channel for the sales of the products made by Gyeonggi-do’s small and medium-sized enterprises. It was created in cooperation with the Korea Gyeonggi Company and Siheung City.
This year, to help local businesses suffering from the economic effects of the COVID-19 pandemic, various themed events, including a flower market, agricultural product package sale, and more. were held in Baraji Market. The flower market recorded a whopping KRW 134 million in sales during April and May.
New businesses that have entered the market have also reported an increase in sales. Baraji Market has become a positive space that connects local businesses to local consumers.
The Korea Gyeonggi-do Company has also been active in the home-shopping scene, which is ideal for reaching a broad audience.
Home shopping is very popular among consumers in South Korea. Be it TV home-shopping or online malls, the ease of access to the internet and television as well as a fast and reliable delivery network have created a thriving ecosystem for non-face-to-face commerce.
South Korean TV home-shopping tends to have its own unique style. The programs use a casual format to be entertaining and engaging. TV home-shopping offers a wide range of products and viewers can purchase food, appliances, clothing, and more.
Under the “2020Home Shopping Support” program, the Korea Gyeonggi-do Company has managed to help even more small and medium-sized enterprises. In Yangpyeong County, for example, the GGD supported rice sales, amounting to KRW 110 million in just one day. Many other products also sold out, one after each other.
By the second half of this year, the GGD hopes to facilitate sales equating to KRW 13 billion through various projects, including home-shopping support for 30 companies.
The Korea Gyeonggi-do Company will continue to help Gyeonggi-do SMEs throughout these difficult times. Gyeonggi-do is invested in the success and vitality of small and medium-sized enterprises which are important pillars of the local economy.