Startup Innovating the 15 Trillion Won Dongdaemun Wholesale Market

Dawn Wholesale Market Moves Online
Shinsang Market Nears 1 Trillion Won in Cumulative Transactions

Innovative startups are emerging to change the 'tradition' of the Dongdaemun fashion wholesale market. They are faithfully transferring the early morning Dongdaemun market, where retailers from all over the country gather, to online platforms. With the power of information technology (IT), the transaction practices of the Dongdaemun fashion wholesale market, which amounts to an annual scale of 15 trillion won, are also undergoing change.

According to industry sources on the 30th, fashion B2B (business-to-business) platforms 'Shinsang Market' and 'Linkshops' are leading this innovation and change, experiencing rapid growth. They have implemented the role traditionally played by so-called 'saip uncles' in the Dongdaemun market onto their platforms. Previously, retail businesses nationwide relied on saip uncles to purchase desired products on their behalf from the Dongdaemun wholesale market. However, now, through these startup platform services where wholesalers are registered, a system is in place that allows delivery to the store front with just a few clicks on mobile devices.

As more merchants pay attention to the convenience of this service, the pace of change in the Dongdaemun market has accelerated. For example, the number of wholesalers posting information on Shinsang Market increased by 17.6% from 9,777 at the end of 2018 to 11,505 at the end of last year. The number of products increased by 49.9% during the same period. Retailers ordering after viewing product information also increased by 33.1% in one year.

Kim Junho, CEO of Delicious, which operates the Shinsang Market platform, said, "Compared to the early days of the Shinsang Market service at the end of 2014, more than four times the number of wholesalers and more than seven times the number of retailers are now using Shinsang Market for their businesses." He added, "Our philosophy to systematize Dongdaemun and make customers' businesses easy and convenient is being recognized in the Dongdaemun market." According to Delicious, the cumulative transaction amount of Shinsang Market is expected to exceed 1 trillion won this year. From the start of the business in late 2014 until last year, the cumulative transaction amount reached 900 billion won, and considering the monthly transaction amount is around 30 billion won, it is possible to surpass 1 trillion won in cumulative transactions within the first half of this year.

Linkshops, which debuted in 2015, has also grown more than twice every year in terms of order amount, currently recording an average monthly order amount exceeding 20 billion won. Their strategy focusing on service advancement has been effective. A representative example is Linkshops’ provision of a 'fulfillment' service that covers the entire process from purchasing, inspection, inventory and logistics management, to packaging and delivery. Users can also utilize real-time inventory management as well as settlement and accounting tasks. Retailers using Linkshops can reduce the effort involved in purchasing, inspection, and delivery, and with streamlined operations, consumers can receive products faster.

Currently, Linkshops has the largest purchasing team in Dongdaemun, consisting of about 30 members with an average of over 10 years of experience. They also operate logistics warehouses and freight delivery services. Through this, orders placed before 11 PM on weekdays are processed from purchasing to delivery within 5 hours. Seo Kyungmi, CEO of Linkshops, said, "We are continuously strengthening our development team for the innovation of the Dongdaemun market," adding, "We will grow as a platform that grows together with merchants and simultaneously activates small-capital startups."