SMEs and Small Business Owners Struggling with COVID-19... Home Shopping Industry Steps Up

Lotte Home Shopping's Special Live Broadcast "Cheer Up Korea"
CJ O Shopping Supports R&D Costs for Product Development of Small and Medium Partner Companies

[Asia Economy Reporter Seungjin Lee] The home shopping industry is stepping up to help small and medium-sized enterprises (SMEs) and small business owners struggling due to the novel coronavirus disease (COVID-19).

According to the home shopping industry on the 22nd, Lotte Home Shopping will hold a special live broadcast titled "Cheer Up, Republic of Korea" on the 26th to support sales channels for small business owners in the Busan and Gyeongnam regions who are facing difficulties due to COVID-19. The broadcast will be a dual live transmission connecting the headquarters in Yangpyeong-dong, Seoul, and Haeundae, Busan.

This broadcast is part of the government's "Korea Together Sale" initiative to overcome the COVID-19 crisis and stimulate consumption. Lotte Home Shopping plans to prioritize small business owners in the Daegu-Gyeongbuk and Busan-Gyeongnam areas, which have been severely affected by COVID-19, and support their sales channels through TV and T-commerce.

Additionally, Lotte Home Shopping will sell "UV Protection Parasols" and "Summer Shoe Care Kits" on the 26th, which were deemed urgent for sale considering seasonality and inventory status during the Busan-Gyeongnam online store consultation held last month. Last month, to support farmers affected in the Daegu-Gyeongbuk region, they sold "Sun-Kissed Carrot Apple Juice" and "Our Persimmon Cheongdo Semi-Dried Persimmons," recording about 1,200 sets ordered within 60 minutes.

On the 23rd and 25th, sales support broadcasts for seafood will be conducted through the T-commerce channel "Lotte One TV." This was arranged to help expand sales channels as seafood exports have become difficult due to COVID-19 and domestic demand has decreased. The broadcasts will offer preferential commission rates. On the 23rd, "Domestically Processed Flounder" caught in the East Coast will be sold, and on the 25th, "Semi-Dried Croaker" salted with Shinan solar salt will be available.

Meanwhile, Lotte Home Shopping is carrying out various win-win activities such as store entry support, product sales, and donation delivery to help farms and small business owners overcome the crisis caused by COVID-19.

CJ ENM O Shopping Division is making investments to help small and medium-sized enterprises struggling due to COVID-19.

CJ ENM O Shopping Division will provide a total of 300 million KRW in research and development (R&D) funds to 10 small partner companies. Given the recent difficulties many SMEs face in investing due to COVID-19, this product development support fund is expected to revitalize these companies. In particular, by directly providing funds for product development investment, it is anticipated to help strengthen the competitiveness of SMEs.

CJ ENM O Shopping Division selected 10 partner companies among those with whom it has signed win-win growth agreements. Each of these SMEs will receive 30 million KRW in R&D support funds. The SMEs plan to use this money for product design and performance improvements, introduction of production machinery, and mold development.

For this project, CJ ENM O Shopping Division formed an R&D consortium with the Foundation for Cooperation between Large, Small, and Medium Enterprises and Agriculture, Forestry and Fisheries, and the Korea Productivity Center. The O Shopping Division provides funding and selects SMEs, the Foundation manages agreements and fund operations with each company, and the Korea Productivity Center conducts management consulting. Last year, CJ ENM O Shopping Division also supported 10 small partner companies with 300 million KRW in R&D costs.

Lee Ho-beom, Head of External Cooperation at CJ ENM O Shopping Division, said, "Products with excellent quality and design lead to sales and customer satisfaction, so supporting R&D investment is a way for both distributors and manufacturers to grow," adding, "We will continue to develop various win-win programs to grow together with small partner companies."