Government to Expand Support for SME Sales Channels to 6,000 Products by 2024

Top Business Challenge for SMEs: Securing Sales Channels... Government Support Expansion
Ministry of SMEs and Startups Announces 'Sales Channel Innovation Support Plan'... Promoting Domestic Demand Activation
Customized Strategies by Channel... Increasing BrandK and Market-Leading Products

Minister Kwon Chil-seung of the Ministry of SMEs and Startups visited Dream Square in Mapo-gu, Seoul on the 5th and ordered coffee from a robot barista. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Bo-kyung] The government has rolled up its sleeves to support small and medium-sized enterprises (SMEs) struggling to secure sales channels due to COVID-19. The plan is to increase the number of supported SME products to 6,000 by 2024 and actively respond to the expansion of online and non-face-to-face consumption.

The Ministry of SMEs and Startups announced the 'SME Sales Channel Innovation Support Plan' with these details at the '29th Emergency Economic Central Countermeasures Headquarters Meeting' held on the 10th.

This plan was prepared to reduce the burden of securing sales channels for SMEs and to revitalize the domestic market. According to the SME status survey conducted by the Korea Federation of SMEs last year, the biggest management difficulty due to COVID-19 was securing sales channels (51.1%), and securing sales channels was also ranked first (78.8%) as the main factor hindering sales growth.

To support SME sales channels, the Ministry of SMEs and Startups presented four strategies: ▲strengthening customized and linked support by market and channel ▲responding to changes in sales environment trends ▲establishing a data-based comprehensive sales support system ▲improving the delivery system of SME sales policies.

First, based on market analysis for each channel?business-to-business (B2B), business-to-government (B2G), and business-to-consumer (B2C)?customized strategies will be established, focusing on supporting entry into new markets. The number of supported SME products (cumulative) will increase from 1,000 in 2022 to 3,000 in 2023 and 6,000 in 2024.

The awareness of the national representative joint brand 'BrandK' products will be raised, and a BrandK flagship store will be operated. The support target for BrandK is 200 stores this year, expanding to 300 stores next year and 400 stores in 2023.

In response to the expansion of online consumption, the number of partner malls for the integrated online mall management platform 'I'm Seller' will increase to 30 companies in 2022. The dedicated sales spaces for SME products will be rebranded and integrated to support initial market entry while also assisting entry into the subscription economy.

Additionally, based on the SME sales status survey, an information system will be established to share and integrate sales and marketing information, building a data-driven system. The plan includes selecting 300 market-leading products by 2023 and strategically responding by matching product groups according to customer characteristics.

A marketing PD system will be introduced for each company to assist in pioneering sales channels through consulting and dedicated support for overall marketing. The target number of supported companies (cumulative) will increase from 50 this year to 150 in 2023.

Furthermore, a dedicated sales execution agency will be established, and regional sales innovation centers will be set up to unify sales support policies.

Minister Kwon Chil-seung of the Ministry of SMEs and Startups stated, "We will take the lead in SME sales channel innovation by collaborating with local governments and public institutions so that SMEs can enhance their own capabilities to create sales channels, respond to the COVID-19 crisis, and stimulate domestic demand."

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