Traditional markets had performed the role of pillar in the local economy as the living foundation of local people as well as the central space for the wholesale and retail sale distribution until 1980`s. After the full opening of the distribution mar...
Traditional markets had performed the role of pillar in the local economy as the living foundation of local people as well as the central space for the wholesale and retail sale distribution until 1980`s. After the full opening of the distribution market in 1996, however, its competitive power was lost and declined due to the emergence of a variety of distribution types, the change of customers’ consumption habits and purchase pattern. Therefore, the government began to support the modernization project of the traditional markets through the establishment of law for the activation of the traditional markets. After the enforcement of the modernization project, the effect to prevent sale drop and customer reduction appeared, but this effect was insignificant in spite of the input of tremendous budget. The customers still tend to prefer modern shopping centers or SSM. away from the traditional markets.
In this regard, the study attempts to diagnose the problems of modernization project through the substantial and concrete the effectiveness analysis of modernization project on traditional markets to provide the activation method of effective traditional markets. To achieve the goal, this study analyzed the current condition of the traditional markets, reviewed relevant regulations and governmental projects to support and drew indicating points through reviewing the best practices of the activation of traditional markets at home and abroad. It also analyzed the overall satisfaction and substantial effect of the traditional market’s modernization project by carrying out questionnaire surveys on merchants and customers at the Jinjujungangyudeng market in Jinju.
As a result of questionnaire survey, both merchants and customers were generally satisfied with the modernization project and they thought that the market environment was improved after implementing the project. The customer numbers and sales amount, with actual improvement, also increased after implementing the project. The sub-project items which had a significant effect on the activation of the traditional markets included the installment of arcade, the creation of parking lot, the creation of customer resting room, shop remodeling, signboard maintenance, the remodeling of public toilets in terms of facility modernization project. Also these items included the issuing of vouchers, the indication of price and the place of origin, publicity and marketing event, discount event, the performance of event, and the exhibition of excellent products in terms of management modernization project. In the future, for the modernization project of traditional markets, the effect of the project should be maximized through the preferential and intensive implementation of such projects.
In summary, as results of questionnaire analysis, customer numbers and sales amount after the modernization project of the traditional markets increased, though the extent of increasement was low with the level of 5~20%. Therefore, it was analyzed that sub-project items of the modernization project, which had a significant effect on the activation of the traditional markets, had a low level influence. In conclusion, some customers and sales amount decreased, after the enforcement of the modernization project. It was judged that substantial improvement effect was insignificant.
Therefore, in view of the activation methods of the traditional markets, the security of the parking lot, the expansion of cultural space, and the environment amelioration of the overall market interior are required in the aspect of the facility and environment. Subsequently, it is required that merchants’ awareness, the improvement of management ability and service quality through the education for merchants, the activation of merchants’ organization, the improvement of management environment, and the differentiation from rivalry companies in the aspect of management and administration. It is judged that the sufficient budget policy, the modernization project of facility, the equal enforcement of the management modernization project, the reestablishment of the position of the traditional markets, the enforcement of policy, which can enhance the satisfaction of both customers and merchants, the strict management and supervision of the government are required. Despite the tremendous support of the government for the activation of the traditional markets, traditional markets still suffer from difficulty in operation and opposition to the large-distribution companies, which are in the relationships of competition is intensified. Under such circumstance, the demand for the activation of traditional markets is expected to continue.
In this regard traditional markets should have the ability to survive and establish its own value and identity through the strengthening of its competitive power and differentiation for the activation of the traditional markets. It is most important that merchants should make an effort by themselves through changing their recognition for the activation of the traditional markets. When the continual support of the government is added to the efforts of merchants, the effect of the traditional markets will be maximized.