Fierce Competition among Domestic Discount Markets
There has been fierce survival competition among domestic discount markets run by conglomerates and small-sized supermarkets since large companies have entered into large sized discount markets and even small-sized discount markets.
This collision has occurred in the areas of Busan, Kyongnam, and Ulsan. The growing influx of domestic conglomerates into the product distribution business since the IMF period has been considered as a trigger to exploit Busan local workers who were dismissed during IMF restructuring and the economic recession and to split social polarization.
According to Busan Metropolitan City, the number of big discount markets operating in Busan by conglomerates was only 5 in 1995, but currently increased to 24 in 2006. In the case of Kyongnam district, in 2000 there was only E-mart in Jinju, but now 13 discount stores are being operated by now. Some local distribution experts said this would increase to 18 stores sooner or later.
It is clear that there would be more sparking survival competition among conglomerates and small and middle-sized discount stores to get a small piece of the pie. A flood of local street vendors and supermarket owners have been striking for over two months in front of the Homeplus construction site, which will open across from Pusan University of Foreign Studies.
In Jinju, there has been a similar strike due to the announcement that a big discount market, SM21, would be constructed, strongly facing grouped resistance by its neighbor vendors. The Association of Kyongnam and Masan Vendors said, “City can’t avoid taking part of responsibility for the current collision and disputes, caused by local governments’ random construction permission.” Another civic group YMCA and YWCA said, “Due to 24 hour business of these big discount markets, a number of small-sized markets have been economically damaged and the regulation of big markets’ business hours should be executed.”
|
 / 입력시간: 2006. 02.24. 08:39
|
|
|
