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To cite this Article Jiyeon Kim, Minkweon Lee and Minsun Yeom (2014) ‘Revitalization of the Gil-Dong
Traditional Market in Korea’, Journal of Marketing Thought, 1(2): 58-68
To link to this Article: 10.15577/jmt.2014.01.02.58
FIGURE 1
Traditional Markets in Korea
FIGURE 2 FIGURE 3
The Geographic Position of
A map of the Gil-Dong Traditional Market
the Gil-Dong Market
길동시장
apartments, and large-scale apartments. There are about Gil-Dong market analysis
51,000 residents (20,000 households) in Gil-Dong, and the- The Gil-Dong market is located along a street 600 m long,
se individuals represent the primary customer group. In and there are stores along both sides of the street. There are
addition, it is a major traditional market in the Gangdong many types of businesses, particularly those related to food
region and is visited by people from nearby districts, in- products such as side dishes, snack bars, and vegetable
cluding MyeonGil-Dong (507,000 residents), Cheonho- stores.
dong (98,000), and Dunchon-dong (49,000). An average There is a diverse range of stores in Gil-Dong Golmok,
household in this region has 2.62 people. attracting visitors across all age groups. In addition, the
market is generally considered to have good prices and
TABLE 1
A Population Analysis Based
on Trade Regions
Residential households Residential population Office population
Division
2011 2012 2013 2011 2012 2013 2011 2012 2013
Gil-Dong 18,411 19,745 20,077 54,886 50,956 51,171 0 0 24,749
* Source: Estimates based on the Ministry of Security and Public Administration Census (October 2013).
TABLE 2
The Population Composition
Population
Trade region Households
Residential Office
First 12,512 32,215 17,467
Second 47,120 117,141 46,309
* Source: Estimates based on the Ministry of Security and Public Administration Census (October 2013).
Journal of Marketing Thought / 60
TABLE 3
Residential Popuation
Age
Trade Total
Division Under Above
region Population 10’s 20’s 30’s 40’s 50’
10 60
32,215 2,582 3,268 4,905 5,923 5,080 5,609 4,848
Count
Total
100 8.01 10.14 15.23 18.39 15.77 17.41 15.05
Ratio(%)
16,022 1,370 1,720 2,479 3,053 2,496 2,618 2,286
First Count
trade Male
100 8.55 125.55 144.13 123.15 81.76 104.89 87.32
region Ratio(%)
16,203 1,212 1,547 2,426 2,870 2,594 2,992 2,562
Count
Female
100 7.48 9.55 14.97 17.71 16.01 18.47 15.81
Ratio(%)
117,141 8,895 11,844 17,629 21,218 18,605 20,650 18,300
Count
Total
100 7.6 10.11 15.05 18.11 15.88 17.63 15.62
Ratio(%)
58,518 4,685 6,221 8,908 11,029 9,309 9,767 8,599
Second Count
trade Male
100 8.01 10.63 15.22 18.85 15.91 16.69 14.69
region Ratio(%)
58,622 4,210 5,623 8,721 10,189 9,296 10,882 9,701
Count
Female
100 7.18 9.59 14.88 17.38 15.86 18.56 16.55
Ratio(%)
* Source : Estimation based on Ministry of Security and Public Administration Census (October 2013).
product quality in comparison to other markets. The pas-
FIGURE 4 sageway is wide enough for people to move easily, and the
Business Types road is well paved for a good shopping environment.
at the Gil-Dong Golmok Market There is a subway station at the market entrance, mak-
ing transport easy. However, subsidiary facilities and mer-
etc. chants’ courteousness are considered poor relative to those
Supermarke Chickens 16 Sidedishes
t 5 10% 18 of large supermarkets. In addition, merchants tend to have
5 3% 12% little knowledge of coupons and delivery services, and there
Healthy miscellaneo is some problem with communication between merchants.
3%
Suppliment us goods
Further, there are virtually no tourist spots near the market,
s 18
5 12% limiting connections to tourism resources.
3% Based on this analysis, the Gil-Dong market has an
above-average score on a three-point scale.
Fruits The results based on interviews with merchants and demo-
7 flour based
food graphic data show that, despite the even distribution of age
5%
16 groups (based on the Ministry of Public Administration and
Ricecakes 10% Security census in October 2013), the primary age group
9 includes housewives above the age of 40.
6% The average household has 2.62 members, and there-
Fishes, Vegitables
Meats Clothes fore the market can be considered a high-potential market
Dried 14
10 Restaurants Fishes 13 because it can attract young households composed of one or
9%
6% 10 8%
10 two individuals.
6% 7% Given the general market situation, a certain number
* Others: mill and crop products (4), bakeries (4), cosmetics (4), of customers can be maintained. That is, the market has a
jewelry (2), pets (1), and flowers (1). certain number of loyal customers. Unless the external en-
vironment changes substantially (establishment of large-
61 / Jiyeon Kim, Minkweon Lee, Minsun Yeom*
TABLE 4
Market Analysis Score Card
TABLE 5
A SWOT of The Gil-Dong Market
Strength Weakness
Affordable price Average level of kindness by merchants
Product diversity Poor tourism resources nearby
Proximity to public transportation Lack of subsidiary facilities (toilets and parking spaces)
Pleasant facilities and environments Lack uniqueness
Opportunity Threat
Densely populated residential region Change in external environments
(townhouses and small apartments for single-person (Large-scale supermarkets or SSMs)
households) Lack of young visitors
Government-chosen traditional market
Nearby camping grounds and ecological parks
young consumers, then it be revitalized in the long term. rean traditional jelly products. It also formed alliances with
However, stores selling side dishes and rice cakes and gave service
young consumers have increasingly avoided traditional packages for memorial ceremonies through an online store.
markets, and because the market cannot predict the estab- It established a coupon system to give 50% discounts
lishment of large-scale markets or SSMs, there is a need to on Saturdays and supplied vegetables and fruits through 25%
carefully monitor its external environments. discounts. As a result, it saw a return of KRW 60~70 mil-
Based on a SWOT analysis, four tasks are necessary lion every year. Eventually, it was awarded the prestigious
for the revitalization of the Gil-Dong market: attracting presidential award in the traditional market innovation cat-
young consumers, establishing distinct characteristics of the egory in 2013.
market, promoting the market's existing strengths, and de-
vising strategies to address any external changes. This study B. The Toyakinja Japan Traditional Market Coop-
later proposes a revitalization plan based on these four tasks. erative Association
(the benchmark for the Joonggok Jeil market)
The Toyakinja traditional market cooperative association in
Analysis of various markets in Japan was established with JPY 13.5 million in capital,
Korea FIGURE 6
The Junggok Market
Based on an analysis of a successful traditional market, a
suitable strategy for the Gil-Dong traditional market is de-
vised based on four types of markets: corporations, special-
ized markets, alliances, and cultural innovation.
Corporation Type
FIGURE 7
The Jidong Market
which was provided by its merchants, in the 1990s. This and meat but became known for creating the “Sundae”
was driven by a declining market after the bursting of town consisting of 40 “Sundae” stores. Suwon is well
Japan's bubble economy in the 1970s and 1980s. known as a town with the Korean-style rib, with “Sundae”
The market supplied products to local hospitals, being the symbolic food of Suwon. As a result, the market
schools, and corporate restaurants, among others. Becoming has become an important part of the tour in Suwon in con-
a village enterprise, it hired about 250 residents and grew to junction with “Suwon Hwasung,” a famous tourist spot in
a medium-sized enterprise with JPY 5 billion in annual the region.
revenue. For example, the per-store revenue grew by 24%
from JPY 11.9 million in 2008 to JPY 14.8 million in 2010. Alliance Type
FIGURE 8 FIGURE 9
The Gwangjang Market The Tongin Market
Journal of Marketing Thought / 64
FIGURE 10
The Motgol Market
cafés have seen their revenue increase by over 40%. Cultural Innovation Type
The market's website provides a wide range of infor-
mation and an online shopping mall for local residents. In A. The Motgol traditional market of Suwon
addition, a workshop has been managed for DIY furniture The Motgol traditional market is located in Suwon City,
and interior pieces and for various events. and there are 87 stores that started in 1975. The market
The Tonging market pursues synergies as a tourist supplies mainly food related products.
spot near “Seo Chon" (tourism village) and the Daerim gal- A merchant association was established in 2003 to
lery, which are famous among trendy and young consumers. modernize facilities since 2004. The Motgol market was
selected as a trial market of the “Mun-Jun-Sung-Si project,”
B. The Nambu traditional market (a mall for youths) sponsored by the Ministry of Culture, Sports, and Tourism,
The Nambu traditional market is located in Jeonju (south- in 2008 (Mun-Jun-Sung-Si is a revitalization project for
ern part of Korea). More than 80% merchants are over the culture in traditional markets supported by the Ministry of
age of 50. Through a project for supporting young mer- Culture, sports, and Tourism).
chants managed by the Ministry of Culture, Sports, and The Motgol traditional market focuses on changing
Tourism, any unoccupied space on the second floor of the the marchants’ culture such that they can enjoy their work
market is leased to those in their twenties and thirties for and achieve harmony, which affects the mood of the market
new businesses. As a result, 17 young merchants have re- and thus that of customers.
ceived financial support in the amount of KRW 10 million Many programs have been tested in this regard, such
from the project to start their own businesses. as the “Motgol On-air Radio Star” (a radio program by
This has given rise to many types of businesses such merchants and their Motgol stories on Mondays and Thurs-
as cafés, fashion stores, and bars As a result, it has been days), the “Zumma Complain Choir,” the “Motgol Band,”
referred to as the “youth mall.” After the opening of the the “Motgol Culture Festival,” “Marchants cooking classes”
youth mall, the number of visitors increased by up to 40% (cooking with ingredients from the market and introducing
and attracted tourists during weekends. The Nambu youth own recipes to customers), and “Wagle Wagle School for
mall has been evaluated as a new model of development for Kids.”
traditional markets because it shows some potential for the As a result, the average profit and revenue have in-
revitalization of traditional markets. creased by 30% and 22.8%, respectively, and the market
has been covered by the media about 430 times. In addition,
FIGURE 11
The Junggok Market and Map
65 / Jiyeon Kim, Minkweon Lee, Minsun Yeom*
FIGURE 12
Strategic Framework
H : Attraction of Strategic
young visitors
Frame
D : Identity development opportunities
W : Advanced system
the merchants established a nonprofit union called the A strategic framework for revitalization is set based on an
Motgol Culture Union for their sustainable self-reliance. analysis of the Gil-Dong traditional market and the bench-
This benchmark case has important implications. First, mark cases. The horizontal axis refers to attracting young
it is important to attract young consumers. If can be seen consumers, and the vertical axis refers to developing differ-
from the Tongin market and the Nambu market that they entiated identities. The depth refers to the systemization of
have not maintained convention strategies. That is, they the market.
have focused on trends in young consumers and incorpo- For the strategy to attract the young generation, items
rated their interests into market offerings. Attracting young should be suggested by considering their lifestyles to pro-
merchants to a traditional market can be a good long-term vide them with convenient shopping environments and in
strategy for markets such as the Nambu market. duce their frequent visits while changing their percep-
Second, the identity of the Gil-Dong traditional mar- tion of traditional markets and approaching them in a
ket is a key success factor. These cases demonstrate their friendly manner through various exchange programs with
own distinct identities. For example, the Motgol market, the the community.
youth mall of the Nambu market, and the "Sundae" town of Because the Gil-Dong market lacks its own distinct
the Jidong market have their own distinct culture. The es- characteristics (such as special food items or stories) or
sence of being “only one” and “outstanding” can be an im- tourism resources, it should develop its identity based on
portant reason for visiting a market and thus can play a key local residents' characteristics than on environmental char-
role in differentiating the identity and brand of the Gil- acteristics and brand itself through marketing using various
Dong market. methods as the identity development strategy.
Third, there should be effective advertising. The Finally, from the perspective of developing advanced
Gwangjang market and the Tongin market became famous systems, the market should become a cooperative market to
from WOM communication and TV programs. From PPL consistently lead branding and identity development and
to trendy TV programs exported globally, these markets create synergies in terms of distribution effectiveness. In
have become part of tour programs offered by travel agen- addition, it should develop more systematic operating
cies. Once a market is made attractive, it needs to advertise methods by contributing to the local community through
itself to consumers. various activities closely linked to it. Now the specific
Finally, the market should develop a strategy to cope items based on each strategy are discussed.
with changes in external environments. Discount stores can
attack anytime, and new distribution channels can be intro- Attraction of young visitors
duced over time. Here individual merchants do not have To create a reason for young consumers living nearby to
enough power to overcome such risks by themselves, but visit the market, items should be listed under categories
groups (associations) may. A systemized organization may such as shopping convenience, information offerings,
have the ability to reduce such risks and develop competi- changes in perceptions, and community exchanges.
tive markets such as the Junggok market and the Towakinja
Japan market. In this regard, a specialized merchant associ- A. Convenience
ation and its systemization represent a necessary precondi- a. Opening at night
tion for any revitalization. The market should extend its opening hours to 12 midnight
(currently 10 p.m.) to provide make it more convenient for
consumers to visit after work.
A Proposal for The Revitalization of b. Providing Gil-Dong market carts
The Gil-Dong Traditional Market
Journal of Marketing Thought / 66
FIGURE 14
A Conceptual Image
67 / Jiyeon Kim, Minkweon Lee, Minsun Yeom*
the Gil-Dong mart than supermarkets. market can operate late-night meal festivals as a regular
event. It can develop its identity as an “enjoyable nighttime
b. Gil-Dong elementary school weekend markets gathering place” by creating new menu items based on the
Develop opportunities for exchanges between merchants merchants’ own late-night meal recipes and selling and
and local residents by operating weekend markets at Gil- introducing famous late-night food items from various re-
Dong Elementary School and by running programs for ele- gions across the country.
mentary school students to experience the role of merchants.
Advanced system
Identity development To realize this strategy for attracting young consumers and
The Gil-Dong market is a typical traditional market for a develop an effective development plan, a well-organized
village and thus has no distinct characteristics such as his- system is necessary. As demonstrated by the case of
torical events or special food items. In addition, it has no Gwangjin-gu’s Junggok market, the Gil-Dong market can
tourism resources that can be linked to the market. strengthen its adaptability to changes in external environ-
In this regard, for its identity development, the market ments by having a consistent policy through a cooperative
should identify things that can appeal to young consumers system.
in their twenties to forties in the area. By targeting young
consumers, particularly those who belong to one-person A. Customer satisfaction center
households or are office workers, their market use behavior The market can operate a customer satisfaction center to
can be exploited. For example, these consumers are likely provide DB marketing and regional services (parcel pickup
to prefer nighttime shopping after work or weekends. In and cart rental services) and work as a control tower. It can
addition, because the marketing strategy focuses on activi- also make use of managers of traditional markets, which is
ties during the nighttime, when young consumers tend to be supported by Seoul City.
more active, the keyword "night” can be set.
The Gil-Dong market can be given a distinct charac- B. Gil-Dong market merchant college
teristic by its slogan “Joyful Night, Gil-Dong Market, and The market should educate its merchants to be more cour-
then it can develop programs and marketing campaigns to teous and offer selling tips to attract more customers and
brand itself accordingly in a continuous manner. prevent losses from operations. In addition, the merchants
The market can make use of previously mentioned need to better satisfy customers by becoming more familiar
programs such as nighttime hours, a Gil-Dong market exer- with modern electronic devices through IT training.
cise course, and a night sell-off Dutch auction program. By
using this auction, the Gil-Dong market can advertise itself C. Gil-Dong market guide website and app devel-
through TV information programs such as VJ Special Force opment
and Seng-Seng Information. Here topics such as “I am the The Gil-Dong market should create a website that can help
one deciding the market price” can arouse curiosity and customers obtain needed information on the market, and
thus can be an interesting material for broadcasting. In ad- any information provided on the website should be accurate
dition, the Gil-Dong market exercise course can be adver- and informative. In addition, various apps should be devel-
tised through PPL in soap operas, movies, and entertain- oped to provide information through mobile devices, and an
ment programs preferred by young consumers. In addition, independent brand should be launched for its online distri-
by promoting viral marketing campaigns through SNSs and bution.
printed media, the market can develop a new image.
By using market characteristics of many stores selling D. Generate synergies among stores
side dishes and linking restaurants around the market, the There are two medium-sized discount stores (anchor stores)
FIGURE 15
A Conceptual Image
Journal of Marketing Thought / 68
at the Gil-Dong market. Although they are anchor stores, Local govers Club (2011), "Revitalization of traditional market
they are competitors in that some of their products overlap with culture and participation, Go to urban regeneration
(e.g., vegetables, fruits, and various meat products). If the place," Local govers Club.
market can be operated through a cooperative system, these Ministry of Culture, Sports and Tourism (2011), "Report for tradi-
tional market revitalization demonstration project 99, " Min-
stores can be in a cooperative, not competitive, relationship, istry of Culture, Sports and Tourism.
by managing and combining their produce lines. Noh, Hyun-Woong (2012), "A new Experiment of traditional
For example, they may control items so that special- market...Making cooperative association and taking over
ized items such as rice cakes, snacks, and side dishes do not stores," hankyoreh Newspaper.
overlap those sold by discount stores (e.g., household items Park, Gi-Hong (2012), "Nambu market Youth mall becomes a
and processed food products). In addition, both sides can new start-up model,"Jeonbuk Domin Newspaper.
increase sales through a better merchandise mix after iden- SBS CNBC News (2014), "[Small merchant] Revitalize traditional
tifying connections between products. Further, an increase market," SBS CNBC.
in customer convenience by linking the point system of SBS News (2008), "The 2nd golden age of Jidong market with
'Sundae' town," SBS.
discount stores and the market can produce synergies be- Small merchant market corporation (2014), "Report for 1km radi-
tween the stores in the market. us region commercial supremacy analysis of Gil-Dong mar-
ket," Small merchant market corporation.
E. Businesses linked to local communities Song, Ki-Chul, (2012), "Traditional market meaning and revitali-
Relationships with relevant organizations such as local zation plan research through case study," The Seoul Institute.
schools and hospitals can provide opportunities to provide Woo, Ju-Hee (2008), "Study for Traditional marekt revitalization
good-quality food items, and some of the proceeds can be by culture," Korea Culture & Tourism Institute.
invested in the local community to help develop the region Yang, Seung-sik (2012), "If miss high school lunch box, would
for mutual growth and benefits. you try Tongin market?," journal of Chosun.com.
Discussion
This study provides an analysis of various problems facing
the Gild-dong market and proposes a revitalization plan.
Traditional markets face various threats from the emer-
gence of SSMs. However, existing revitalization plans tend
to focus on hardware, including credit card machines and
amenities such as parking spaces and toilets. This necessi-
tates revitalization plans focusing on socioeconomic aspects
such as the traditional market’s distinct cultural value and
support for small enterprises.
In this regard, the present study examines how tradi-
tional markets, which have a distribution channel distinct
from that of SSMs, can strengthen their ability to adapt to
rapidly changing external environments while making full
use of their distinctiveness. The study introduces three ma-
jor solutions: attracting young consumers, developing the
market's distinct identity and marketing strategy, and im-
plementing an advanced system.
The Gil-Dong market is a ordinary traditional market
lacking any distinctiveness. However, by strengthening its
ability to adapt to changes in external environments, devel-
oping an image as a new type of traditional market for all
age groups, including young consumers, and obtaining rel-
evant government support, the market has an opportunity to
achieve sustainable growth.
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Kang, Do-Won (2013), "Seoul city, Announced traditional market
promotion plan," journal of Chosun Ilbo.
Kim, Dong-Hwan (2012),"Traditional market which win monster
mass merchandiser is here," journal of OhmyNews.