80% of SMEs Say "New Introduction of SME-Exclusive T-Commerce Needed"

"Expectations for Cost Reduction Including Sales Commission"

Eight out of ten small and medium-sized enterprises (SMEs) expressed a desire for the introduction of new T-commerce channels exclusively for SMEs.

The Korea Federation of SMEs announced the results of the "SME Perception Survey on the Introduction of New T-commerce Channels Exclusively for SMEs," conducted on 502 SMEs, on the 8th.

According to the survey, 87.1% of the responding companies stated that the introduction of new T-commerce channels exclusively for SMEs is necessary.

The reasons for the need for new SME-exclusive T-commerce channels (multiple responses allowed) were ▲“Expectations of cost reduction such as sales commissions compared to existing T-commerce companies” (72.1%) ▲“Expectations of increased usage due to lowered entry barriers for SMEs” (59.5%) ▲“Expectations of increased broadcasting scheduling and frequency at desired time slots through expanded SME programming ratios” (39.8%), among others.

When asked about their willingness to use the new T-commerce channels, 97.6% of SMEs responded that they either intend to use them or will consider it in the future, while only 2.4% said they had no intention to use them.

Additionally, 80.5% of SMEs expressed the opinion that the introduction of two or more SME-exclusive T-commerce channels is necessary, indicating a strong desire for a significant expansion of T-commerce channels.

The reasons for believing multiple introductions are necessary included ▲“Limited competitive inducement effect with only one company introduced” (31.2%) ▲“Opportunities for promotion and expansion of sales channels” (28.7%) ▲“Guaranteeing channel choice rights for comparison and judgment by user companies” (22.0%), among others.

The necessary conditions for smooth participation of SMEs upon the introduction of SME-exclusive T-commerce channels (multiple responses allowed) were ▲“Preferential entry conditions such as low sales commissions” (70.1%) ▲“Policy support such as preferential transmission fees for assignment of higher channel numbers” (36.1%) ▲“Expansion of communication opportunities with MDs through entry consultation meetings” (35.3%) ▲“Reduction of procedures and time from product selection to broadcasting” (26.9%), among others.

Meanwhile, among SMEs (304 companies) that have experience using T-commerce, the reasons for choosing to enter T-commerce were ▲“Low burden and cost due to one-time recording” (42.4%) ▲“Possibility of steady sales without time constraints” (33.2%) ▲“Easier entry compared to other distribution channels” (13.5%), among others.

Regarding necessary improvements related to T-commerce (multiple responses allowed), the survey found ▲“Reduction of sales commissions” (75.7%) ▲“Scheduling of desired broadcasting time slots and expansion of broadcast frequency” (56.6%) ▲“Relaxation of entry conditions for new products or lesser-known SMEs” (27.3%), among others.

Choo Moon-gap, Head of the Economic Policy Division at the Korea Federation of SMEs, stated, “Through this survey, we confirmed that SME owners have very high expectations for the introduction of new T-commerce channels with low commissions and high programming ratios of SME products.” He added, “It is necessary to establish two or more SME-exclusive T-commerce channels to enhance competitive inducement effects such as commission reduction and to provide a testbed for technologically capable SMEs.”