I spent 22.3 billion won alone … Chinese government store openings continue to close

Two of the three exclusive stores for SMEs, which the government has operated since 2012 to support the sales of products for SMEs, were found to have closed. On the 8th, an exclusive mid-term store for ‘I’m Shopping’ on the fourth floor of Happy Department Store in Mok-dong, Seoul is empty. Journalist Min Kyung-jin [email protected]

The paradox of the economy led by 官 … Closed line of exclusive stores in China

The main branch of I’m Shopping, a policy store dedicated to small and medium-sized businesses on the fourth floor of Happy Department Store in Mok-dong, Seoul, visited on the 8th. This store is the largest of the four stores. exclusive medium-term services operated by the Small and Medium-sized Business Distribution Center. However, fewer than 10 consumers gathered at the main Im Shopping store for two hours this afternoon. It was not due to the new coronavirus infection (Corona 19). A store clerk sighed, “Why aren’t there so many customers?”

Two of the three medium-term stores promoted by the government since 2012 have already closed. According to ‘I’M Shopping Operation Status’ data received from the Small and Medium Business Distribution Center by National Power Member Kim Jeong-jae on the 9th, only four of the 25 I’M Shopping stores established since 2012 are operational. 18 places have already been closed and the closing rate reaches 72%. All three locations were closed due to Corona 19.

Two stores closed in 2015, followed by eight in 2016 and two in 2017 and 2019. This year, when Corona 19 overlapped, four stores were closed. First, the government stepped up directly and opened a store dedicated to helping small and medium-sized businesses, but stores are closing in a row without selling products.

The government has invested a budget of 22.3 billion won to run Im Shopping over the past eight years. However, as of July, total sales for 25 stores were only 74.7 billion won. Last year, the main I’m Shopping store did not sell a single 1,112 products, almost half of the 2,335 products.

It’s noted that I’m Shopping is revealing the limitations of the ‘show-off ceremony’ policy that inevitably follows the government-run economy. The explanation is that it is not sold because there is no market, but because there is no product to buy. Representative Kim said: “It is a show-style administration model of the government that does not take responsibility for business, but does not take responsibility,” he said.

I dumped 22.3 billion won … Two-thirds of exclusive stores are closed

Two-thirds of the SME stores that the government has operated to help SMEs are closed because they ignore the basic principle of the market that sales are made by consumers, not the government. Like Zero Pay, public taxis and public delivery apps, which have been criticized for “ not being competitive ”, is an assessment that clearly reveals the limitations of the “ government-run economy. ”

Even the sales staff “I have to buy a question”

On the 8th, while walking through the “I’m Shopping” store at Happy department store in Mok-dong, Seoul, sales staff and consumers constantly pointed out that they lacked competitiveness in price and quality. An employee at an electronics store said: “Even though we have a product idea, there are many products that have the question ‘I have to buy this one.’ A food store employee said: “Last week a foreigner showed photos of red ginseng products and ordered things, but since they said there were only medium-term products, they just came back.” “This month’s specific product has more sales from the employee than from the customer.” The number of products sold here has been cut by almost half, from 2,335 last year to 1,244 this year.

The same happened with the department stores Hyundai, Pangyo, Seongnam, Gyeonggi, the second largest store in I’m shopping. The message from the store manager was that even the owners of small and medium-sized businesses supplying the product weren’t expecting it. ‘ He said, “Even mid-term bosses are not interested in I’m Shopping stores,” he said. “Recently, few bosses come to see how their products are displayed.” The sales of the I’m Shopping branch in Pangyo are only around 10 million won a month this year. An official at the Pangyo branch was concerned: “I don’t know if the Hyundai department store will renew the contract because the results are too small.” Recently, you are preparing an auto-response, such as hiring a new dedicated employee online with additional government support. However, even the store employees said: “I doubt the situation will improve without a fundamental improvement in the competitiveness of the product.”

Some store sales, less than government budget support

Since this project began, the government has invested around 3 billion won each year. However, the store is constantly closing. Two stores including Incheon Port 1 Passenger Terminal in 2015, 8 stores including Walkerhill and Gyeongju Rest Area in Seoul in 2016, 2 stores including HDC Shilla Duty Free in Seoul in 2017, and 2 stores in Galleria Duty Free in Seoul in 2019, they closed. This year, four stores were closed, including the Shinsegae Seoul headquarters and Busan Centum. Although the store continues to close due to slow sales, the budget is being spent in the form of “pouring water on the broken poison.”

An I’m Shopping official explained that some stores were unable to resist the situation as annual sales fell short of the supported budget. In the case of Shinsegae Main Store and Busan Centum Store, which closed this year, the supported budget this year was 120 million won and 72 million won, respectively, but sales through July were only 36 million won and 12 million won. Shinsegae Seoul Yeongdeungpo Branch and Hwaseong Rest Area also received budgets of 40 million won and 34 million won, but the sales were only 6 million won and 21 million won.

There were also a number of products that were sold in stores, but not even one. In 2019, 1,112, half of the 2,335 products in Happy Department Stores, registered annual sales of ‘0 won’. The Pangyo branch of Hyundai Department Store, 63 of 164 (38.4%), Galleria Duty Free, 28 of 96 (29.1%) and Hwaseong Rest Area stores, 43 of 152 (28.2%) had no sales on last year.

The Ministry of SMEs and Startups and the Distribution Center for Small and Medium Enterprises continue to hire companies in a traditional way. The Small and Medium Business Distribution Center presents: “I’m Shopping Policy Store can maximize the benefits of offline sales by expanding the point of contact between SMEs and consumers.”

The experts noted that there were limitations as the government announced that it would help SMEs by operating stores directly. No matter how much the government invests in taxes to expand sales channels, products must ultimately be chosen by consumers, but the government cannot solve this part. Jo Jun-mo, professor of economics at Sungkyunkwan University, said: “If the government wants to help small and medium-sized enterprises, it has to play a role as a facilitator in supporting product R&D and so on. It can only be seen as a table administration, ”he said.

Reporter Sung Sang-hoon / Min Kyung-jin [email protected]