The Korea Gyeonggi-do Company | Multi-dimensional supports to SMEs

Great home for SMEs, multi-dimensional supports from Korea Geyonggi-do Company is starting to show some great results.

Gyeonggi-do has a high concentration of mid/small-sized businesses. These businesses are a valuable part of the local economy and many of them produce innovative and high-quality products. However, in the current global market landscape, where businesses are fiercely competing for the consumer’s attention, the mid/small-sized companies can find it hard to compete with the larger companies with highly specialized marketing and sales teams.

To counter that, Korea Gyeonggi-do Company was established as a platform for enabling the mid/small-sized manufacturing companies in the province and help them find footing in the market. Invigorating the small companies benefits the local economy, empowers the local entrepreneurs, and creates better job opportunities.

The Story of Korea Gyeonggi-do Company

Korea Gyeonggido Company is not the first attempt at supporting mid/small-sized companies but, since Gyeonggi-do has the highest concentration of small-sized companies in South Korea, the need for its services was noticeable even before its establishment. 

Ninety-five percent of Gyeonggi’s mid/small-sized companies have workforces that are smaller than 50 while the majority of them have less than 10 employees. To top that, in the case of manufacturing businesses, many of them have a workforce mainly focused on the production of goods; the smaller companies lack experienced manpower dedicated to sales and marketing.

Korea Gyeonggi Company was created to tackle these obstacles. The goal was to create an environment where the small businesses can focus on the aspects they excel at, i.e. the production; when a professional entity covers the distribution and marketing, the manufacturers will have access to more opportunities without as much burden.

Korea Gyeonggi-do Company was established in November 2016. After months of preparations, growing the workforce, creating strategies, cataloging products, researching the mid/small-sized companies in the province, etc. in July 2017 the company opened new distribution channels and began full-scale operation.

In December 2016 the company’s first shop was opened in Dongdaemun Design Plaza (DDP) and other online and offline distribution channels were opened soon after. Ever since, Korea Gyeonggi-do Company has been connecting the local manufacturers with consumers who find value in quality and enjoy supporting small businesses.

Korea Gyeonggi-do Company In Action

As we mentioned, Gyeonggi-do has a high concentration of mid/small-sized manufacturing companies, averaging about 120,000 total. Many mid/small-sized businesses manufacture unique and high-quality products but, because of marketing and advertising limitations, their products can go unnoticed.

This is where Korea Gyeonggi-do Company enters the picture; it helps the small businesses with design, marketing, sales and distribution channels, and connects them to the foreign markets. In essence, Korea Gyeonggi-do Company offers a sharing economy platform that helps empower the growth of regional businesses. 

The platform provides the grounds for the mid/small-sized companies to work together and connect with designers, retailers, etc. The company also helps promote the sales of manufactured products through content marketing and professional marketing support. 

Gyeonggi-do Company cooperates with Youtube channels to promote SMEs' products  ⓒ 경기도주식회사

Korea Gyeonggi-do Company envisions fortifying the local economy by maximizing the revenue of small companies with the aid of its services and platform. To achieve this vision they have 3 main strategies:

1.      Promote GGD, Gyeonggi-do’s joint consumer brand. Create high-quality consumer goods under the GGD brand and raise awareness about the Korea Gyeonggi Company.

2.      Promote a responsive system that reflects the distribution results. By reflecting the results and improving the design, marketing, and operation processes based on them the company can magnify its success. 

3.      Promote value-based consumption and aim for win-win results. Raise awareness about the GGD brand by bringing light to the quality of the products manufactured in the province.

GGD brands sold in the GGD website ⓒ경기도주식회사

The Success Of Korea Gyeonggi-do Company

In 2019, Korea Gyeonggi-do Company tripled its annual sales, compared to the previous year, by reaching 10 billion KRW. In addition in 2019, Korea Gyeonggi-do Company increased its member companies to 752 (which is a 39% increase compared the previous year). 

To achieve this, Korea Gyeonggi-do Company significantly increased its distribution channels in a variety of online and offline spaces including department stores, marts, home shopping channels, social commerce, etc. 

Siheung Baraji market is a representative offline distribution channel that cooperated with Shinsegae (major department store group).

The company has also put effort into creating connections that will help with breaking into the foreign markets. To secure means of entering the foreign markets and promote the overseas sales of the products, Korea Gyeonggi-do Company is planning on opening a trades office in Yanbian Korean Autonomous Prefecture, which is strategically located at the border of Russia and North Korea in China. Also, the company opened an office in Hanoi to enter the Vietnamese market. The Hanoi office connects Gyeonggi-do manufacturers with a valuable market following the South Korean government’s policies aimed at strengthening Korea’s relations with India and ASEAN countries.

Another factor in the company’s success has been the strategic use of new media for marketing and PR. The campaigns were created and executed with the cooperation of regional universities (including art, design, media, and broadcasting schools) and regional online mothers’ communities, which are referred to as ‘mom cafes’.

For the viral marketing campaigns, the fresh ideas offered by the youth participants were executed in 3D motion graphics and live-action videos; a YouTube channel was created specifically for these innovative promotional videos created by the university students. 

Mom cafes, where mothers share information and support related to housekeeping and child care online, have regional communities so that the members can seek information and help on a local level. Six local mom cafes (Gimpo, Suwon, Bundang, Ansasn-Siheung, Paju, Ilsan, and Incheon) joined the PR campaign and helped the sales of the goods through their own Youtube videos, group purchases, etc. The efforts paid off and the company managed to reach out to various age groups with different backgrounds to offer them high-quality products of local origin.

The company has set it’s 2020 financial goal at 13 billion in sales, and has set forth a rigorous expansion strategy. The plan includes helping 200 of Gyeonggi-do’s mid/small-sized companies sell their products in China, targeting the Paektu mountain tourists, and new ASEAN countries such as Laos. Inside Korea, the sales channels will be expanded with an extensive focus on the media’s potential in commerce.