10 Years of Large Mart Sales Regulations... 7 out of 10 Consumers Say 'Regulation Improvement' Needed

Survey of 1,000 Consumers on Apparel
Minimal Regulatory Effect, Lack of Justification, Causes Inconvenience

57% Say Large Marts and Traditional Markets Are Not Competitors
67% Support Allowing Online Delivery on Mandatory Closure Days

[Asia Economy Reporter Jeong Dong-hoon] Seven out of ten consumers (68%) believe that the relaxation of large mart operating regulations is necessary.

The Korea Chamber of Commerce and Industry announced on the 15th the results of a '10-Year Large Mart Operating Regulation Consumer Perception Survey' conducted on 1,000 consumers who have used large marts within the past year.

Operating regulations for large marts have been in effect since 2012, marking their 10th year this year. Currently, large marts are prohibited from operating twice a month on public holidays and from midnight to 10 a.m.

Regarding the large mart operating regulations, 67.8% responded that 'regulation relaxation' is necessary, while opinions for 'maintaining the current status' and 'strengthening regulations' were 29.3% and 2.9%, respectively. As methods for relaxing regulations, respondents cited 'abolishing regulations' (27.5%), 'implementing mandatory holidays considering regional characteristics' (29.6%), and 'reducing the number of mandatory holidays' (10.7%).

Regulations Ineffective and Cause Side Effects

When asked whether 'large mart operating regulations have been effective in revitalizing traditional markets and local small businesses,' 48.5% of respondents answered 'no effect.' The reasons included 'traditional markets and local small businesses did not revive despite large mart regulations' (70.1%), 'purchase demand on mandatory holidays shifted to channels other than traditional markets and local small businesses' (53.6%), and 'only consumer inconvenience increased' (44.3%), in that order.

Regarding actual purchasing behavior when consumers realized the large mart they used was closed due to mandatory holidays, the majority answered 'use other channels instead of large marts' (49.4%) and 'visit large marts on open days' (33.5%), while only 16.2% said they 'shopped at traditional markets on the same day.' This indicates that the effect of shifting purchase demand to traditional markets due to large mart mandatory holidays was limited.

Additionally, consumers who responded that they 'use other channels' during large mart mandatory holidays cited 'medium-sized supermarkets and food material marts' (52.2%), 'online shopping' (24.5%), and 'local supermarkets and marts' (20.6%) in that order. The 'others' category accounted for 2.7%. This shows that large and medium-sized small retail businesses and online shopping are enjoying the spillover benefits of large mart operating regulations.

Lack of Justification for Continuing Regulations

When asked whether 'large marts and traditional markets are in competition,' 57.3% said 'they are not competitors,' while only 20.3% answered 'they are competitors.'

When asked 'who are the main competitors of traditional markets,' respondents cited 'nearby traditional markets' (32.1%), 'supermarkets and food material marts' (30.9%), and 'online shopping' (18.8%) in that order, with only 16% identifying large marts as competitors.

Reflecting this, 47.9% of large mart users said they 'have not used traditional markets even once in the past year,' and the proportion of people who did not use traditional markets was higher among younger age groups. This suggests the need for distribution policies that reflect demographic changes and consumer trends.

Consumers Endure Inconvenience

When asked about the main purchasing channels used for buying groceries or daily necessities, respondents mainly cited 'large marts' (54.7%), 'medium-sized supermarkets and food material marts' (16.1%), and 'online shopping' (15.6%), while those using 'local supermarkets' (10.7%) and 'traditional markets' (2.3%) accounted for only 13%.

When asked 'what do you do when you learn in advance about mandatory holidays,' 56.9% answered 'shop before the mandatory holiday,' and 11.3% said 'shop on Sundays, which are not mandatory holidays.' Even with mandatory holiday regulations, consumers continue to visit large marts, enduring the inconvenience caused by the regulations.

When asked whether mandatory holidays at large marts cause inconvenience in shopping, opinions were similar with 36.2% saying 'inconvenient' and 37.4% saying 'not inconvenient.' <‘Neutral’ 26.4%> Regarding this, Professor Seo Yong-gu of Sookmyung Women’s University explained, “Users have become accustomed to alternative behaviors during mandatory holidays due to long-term regulations,” and analyzed that “as online and offline purchasing channels diversify, the inconvenience of large mart mandatory holidays is perceived relatively low.”

From Seller to Consumer Priority, From Regulation to Win-Win Cooperation, From Blind to Considered... Policy Shift Needed

Regarding considerations in establishing distribution policies, 'consumer convenience' (40.4%) was the most cited opinion. This indicates the need for policies prioritizing consumer benefits.

For policies most needed to develop and strengthen competitiveness in the distribution industry, 'building cooperative relationships where large enterprises and traditional markets can grow together' (40.3%) was most frequently chosen, followed by 'creating a fair market environment' (24.5%) and 'strengthening competitiveness of traditional markets and local small businesses' (19.9%). <‘Others’ 15.3%>

Regarding the decision on whether to continue large mart operating regulations, 7 out of 10 people (71%) answered that 'the decision should be made after a thorough analysis and practical evaluation of the regulation’s effects,' indicating that policy directions should be determined based on analysis and verification of regulatory effects.

Woo Tae-hee, Executive Vice Chairman of the Korea Chamber of Commerce and Industry, emphasized, “The distribution market environment has changed significantly compared to 10 years ago due to the expansion of online distribution, the rise of the MZ generation, and the development of 4th industrial technologies,” adding, “Rather than regulations, it is necessary to shift distribution policies toward establishing a fair competitive environment reflecting consumer trends and the times, and strengthening the competitiveness of small business owners.”

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