'Digitalization' Revives Traditional Markets in the COVID-19 Era

Professor Ilhwan Lee of Chung-Ang University and Others Proposed at the Small and Medium Venture Business Policy Society Academic Conference

[Asia Economy Reporter Kim Jong-hwa] To revitalize the domestic traditional market economy, which has worsened due to the novel coronavirus disease (COVID-19) crisis, there is a claim that changes in existing sales methods, such as the 'digitalization of traditional markets,' are necessary.

By utilizing storytelling to create the market's brand and developing consumer apps even in traditional markets to deliver to nearby areas, only fundamental changes in existing sales methods can save traditional markets. It was also noted that win-win growth and cooperation between large, medium, and small enterprises are demands of the times.

Professors Lee Jeong-hwan and Lee Il-hwan of Chung-Ang University made these claims in a keynote presentation titled "Measures to Revitalize Traditional Markets ? Measures to Activate Self-Competitiveness and Win-Win Cooperation Models between Large and Small Businesses" at the "2020 Autumn Academic Conference ? Opportunities and Prospects for Korean New Deal SMEs" hosted by the Korea Small and Medium Business Policy Association on the 20th.

The first necessity the two professors advocated for was the expansion of 'delivery services' in traditional markets. Currently, only four traditional markets in Seoul offer delivery services: Jamsil Saemaeul Market in Songpa-gu, Mangwon Market and Mangwon World Cup Market in Mapo-gu, and Bongcheon Jeil Market in Gwanak-gu. Delivery services are essential to revive traditional markets that have stagnated due to the COVID-19 situation.

In the case of Gwangmyeong Traditional Market in Gyeonggi Province, delivery services started in March through an app developed by a private company. Initially, 40 out of 400 stores in the market participated, but now 120 stores are involved, and as delivery services have become active, the market economy is gradually recovering.

In line with this trend, the government plans to increase the number of traditional markets equipped with online delivery systems to 500 by 2025. However, since online delivery is already saturated, there is also a need to develop new digital models that combine online and offline features, reflecting the characteristics of traditional markets.

It was also pointed out that traditional markets should actively participate in win-win cooperation modeled after Emart Everyday. Two Emart Everyday stores in Junggok-dong and Sadang-dong do not sell vegetables, fruits, or seafood handled by nearby traditional markets but only sell frozen meat and industrial products.

Professor Lee Il-hwan said, "Delivery services also need to be advanced," adding, "Current apps make it difficult to select markets and menus. An app that satisfies both consumers and users is necessary." He also pointed out improvements such as overcoming delivery limitations for cooked food, providing various payment methods, and expanding to markets nationwide.

For branding traditional markets, he argued, "Like the cases of Gyeongridan-gil, Mangridan-gil, and Garosugil, regional characteristics and easy accessibility are essential," and "Shopping is closer to entertainment involving various experiences rather than just buying products, so to attract consumers, providing sights and food together to increase consumer satisfaction is necessary."

The professor further emphasized, "By utilizing university student supporters to secure young customers, continuously educating merchants, and facilitating information exchange and network formation, the surrounding commercial districts can also be revitalized," stressing that "the government's will and active participation of large, medium, and small enterprises are important."

This content was produced with the assistance of AI translation services.