Fashion retailing, where and how to purchase

  “The product is good, fast, cheap, and pick two options from them.”   The issue of choosing among these three factors is used in university textbooks. This theory focuses on three marketing & promotion strategies such as good quality, fast speed and low price which are very important, but it is not easy to integrate them all together into one.   The concept of triple factor tells us that there are three limitations to using any marketing strategy tool as follow. (1) Develop something quickly and of high quality, but it will be very costly to do. (2) Develop something quickly and cheaply, but it will not be of high quality. (3) Develop something of high quality and low cost, but it will take a long time.   Dongdaemun market, however, overcame the limit through triple management by balancing the importance of products, speed and price. Will this work well in the market? Or, as everyone says,  “Merchants lie like having lunch or dinner every day.”...

  Up to the present, many wholesalers have led the sustainable growth of the Dongdaemun market. This is because Dongdaemun wholesalers’ sales are estimated to account for 90% of the total market sales.   Needless to say, Dongdaemun wholesalers, which own about 30,000 stores, are small but have strong market competitiveness.   Despite the accumulation of commerce experience and its management know-how, however, Dongdaemun wholesalers are facing a serious structural crisis due to rapid changes in the post-development market environment. Surprisingly, Dongdaemun wholesalers in the crisis faced even greater difficulties due to the unprecedented crisis such as COVID-19 coronavirus pandemic.   Under these circumstances, what should Dongdaemun wholesalers do? Charles Darwin, Author of ‘On the Origin of Species’, one of the historical famous books said.   “It is not the strongest of the species that survives, nor the most intelligent, but the one most adaptable ...

As is widely known, Dongdaemun market is a global shopping district that sells designers’ fashion products at low prices. In Dongdaemun market, however, its market competitiveness based on low price has been weakening gradually due to rising wages and other costs. In the late stages of development, it is true that Dongdaemun market is difficult to avoid the trend of wage increase., Furthermore, it is a big problem of the market that the cost is not reduced due to the inefficiency of physical distribution. We know about the Amazon effects, which have recently come up with an amazing business wave. As CEO Jeff Bezos said, Amazon’s mission is simple. They are trying to discover what products the global consumers want to buy and deliver the products to everyone on the planet. T o improve its performance and cost factors, Amazon is investing heavily in the mechanization of its warehouses. We should know that the key to Amazon’s success is, more than anything else, driven by l...

Apart from the tragic human consequences of the COVID-19 coronavirus pandemic, the economic uncertainty it has sparked will be difficult to predict. In the midst of this domestic and foreign economic crisis, Dongdaemun Fashion Cluster is also facing a big crisis, as if everything has stopped. As every cloud has a silver lining, hopefully, the end of the crisis will come to us someday. The question will depend on how we meet the market situation at that time. This is because Dongdaemun market has had more structural problems in the market than factors appearing outside the market. In the meantime, Dongdaemun market has grown by improving the productivity of human resources such as people and their development will rather than capital or size of market and other physical resources. In the midst of economic growth, changes in market structure and social environment, however, people in Dongdaemun market are unable to adapt to the changes and prevent their competitive...

  From the growth of water-intensive cotton, to worker’s low wages and poor working conditions, the environmental and social costs involved in fast fashion business are widespread.   In this situation, consumers in global market are concerned about the vicious cycle of overproduction leading to overconsumption. In particular, they are willing to spend more on quality products than fast fashion products at low prices.   Like large discount marts that have maintained market competitive advantage for a generation, global SPA brand companies have set up a business strategy that sells at everyday low price instead of doing a seasonal sale.   Under the side effects of fast fashion, however, many fashion consumers do not wish to shop at low prices. If the quality is superior despite high price and gives a certain economic burden, consumers prefer such product and are willing to purchase again. In the global market, the behavior of consumers is changing.   I...

  In terms of conceptual differences, entrepreneur is a person who organizes and operates a business venture and assumes much of the associated risk while merchant is a person who traffics in commodities for profit.   This discussion is widely accepted. In Dongdaemun market, however, there are many merchant princes with entrepreneurship.   “We do not trust fashion, but we rather believe in the customer. We think that life is so short that it is difficult to meet the same customers every day.” +   In fact, most consumers often confuse the value of the logo with the emotional value of any fashion product. But fashion products are truly never a logo. Rather, fashion products enhance customers’ preference with the emotional value of images such as silhouette.   With entrepreneurship, Dongdaemun wholesalers do not simply sell fashion products that have already been produced. They work ‘to produce’ fashion products based on the creative behavior of Dongda...

As a pronoun for Dongdaemun market today, Pyeonghwa Market was founded by refugees from North Korea fleeing to South Korea during the Korean war which had occurred for three years from 1950.  Rebuilt on the ashes of a big fire, the market has grown into a unique marketplace for ‘producing and selling fashion clothes’ in the economic crisis and its aftermath that have lost many people’s lives and property during the war. After the financial crisis in late 1997, the Korean economy faced a serious crisis of negative growth. In the midst of the economic crisis, wholesalers in Dongdaemun market, including Art Plaza, were extended their business hours from 8:30 pm to early next morning or 5: 00 pm, providing convenience for local retailers and foreign buyers. Thanks to such market innovation, Dongdaemun market wrote the so-called Dongdaemun myth, which achieved business performance such as increase in sales and expansion of stores. In this way, Dongdaemun market people turned to...