Human Ecology Research

The Korean Home Economics Association (대한가정학회)
권호 표지
DOI QR코드

DOI QR Code

A Case Study on Business Continuity following the Establishment of a Soho Fashion Shopping Mall: Longitudinal Research

소호패션쇼핑몰 창업 후 사업지속에 대한 사례연구: 종단적 연구를 중심으로

  • Mi Young Son (Department of Human Ecology, Korea National Open University)
  • 손미영 (한국방송통신대학교 생활과학부)
  • Received : 2023.11.07
  • Accepted : 2023.11.27
  • Published : 2024.02.28
Download PDF
⟨ Previous Next ⟩

Abstract

This study analyzed the current operational status, business continuity, and business continuity strategies of 11 Soho fashion shopping malls through a longitudinal case study (2019/2020 and 2022/2023). The aim was to determine how Soho fashion shopping malls are continuing their business having been successfully established in the fiercely competitive current online fashion market. Regarding changes in shopping mall operation status, all cases displayed changes in items, distribution channels, marketing channels, core values, and profit structures. After establishing the businesses, a crisis arose due to the COVID-19 pandemic, leading to difficulties in creating new customers. Moreover, there was excessive business expansion, resulting in saturation of the online platform store market. This meant companies were experiencing reduced sales (5) or difficulties in maintaining their business (3). However, there were differences in the direction of overcoming the crisis and continuing or converting the business. These revealed that to continue the business after successful establishment of an online fashion shopping mall, it is essential to have the expertise of entrepreneurs, work performance, and marketing ability, as well as differentiation capabilities such as product power and management strategy and core competitiveness that provides a relative advantage over other shopping malls. Customized government support at the level of the start-up ecosystem is also essential for the survival and business continuity of a SOHO online fashion shopping mall with poor human and material resources.

Keywords

Acknowledgement

This work was supported by 2022 Academic Research Funds of Korea National Open University.

References

  1. An, K. M., & Kwon, S. J. (2022). Scale-up success factors and policy implications for Korean SMEs: A machine learning analysis using ERIS Model. Journal of SME Policy, 7 (3), 1-38.
  2. Back, J. H., & Seo, J. (2013). A grounded theory analysys of the successful process: Consumer perspective of entrepreneurial. Korean Association of Human Ecology, 22 (4), 619-635. https://doi.org/10.5934/kjhe.2013.22.4.619
  3. Bae, J. C. (2022, May 25.). Competition between Naver and Musinsa is a thing of the past... now "I'm selling a shopping mall". The Korea Economic Daily. Retrieved July, 23, 2023, from https://www.hankyung.com/article/2022052517701
  4. Chan, D. (2003). Data analysis and modeling longitudinal processes. Group & Organization Management, 28 (3), 341-365. https://doi.org/10.1177/1059601102250814
  5. Cho, S. J., Lee, S. M., & Park, B. J. (2014). 'Lean startup' : The way to reduce the failure rate of startups. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 9 (4), 41-53. https://doi.org/10.16972/apjbve.9.4.201408.41
  6. Choi, M. G., & Lee, K. P. (2013). Theoretical proposal and consideration on longitudinal study of entrepreneurial gifted youth. Journal of Gifted/Talented Education, 23 (5), 793-815. https://doi.org/10.9722/JGTE.2013.23.5.793
  7. Goo, M. M. (2012). A study on the sustainable growth of creative micro businesses in creative industry. Humanities Contents, 27 , 155-170.
  8. Hong, H. K., Kim, N. H., & Kim, C. M. (2019). Examining the success factors of start-ups of small businessmen in qualitative perspective. The Journal of the Korea Contents Association, 19 (12), 229-237. https://doi.org/10.5392/JKCA.2019.19.12.229
  9. ICTD(Information and communication terminology dictionary) (2023). Retrieved July, 23, 2023, from https://terms.tta.or.kr/dictionary/dictionaryView.do?word_seq=055970-1
  10. Jeong, J. S. (2021, June 25). Purchasing, delivery, and customer management all at once... The heyday of one-man entrepreneurship. Ktnews. Retrieved July, 23, 2023, from https://www.ktnews.com/news/articleView.html?idxno=119954
  11. Jeong, S. H. (2023, March 19.). Fashion companies flocking to Musinsa and 29CM... rapid growth of 'vertical platform'. Financial News. Retrieved July, 23, 2023, from https://www.fnnews.com/news/202303191818522192
  12. Jo, J. H. (2022, November 30). Domestic fashion market size in 2022: KRW 45.7787 trillion. The International Textile-Fashion News. Retrieved July, 23, 2023, from https://www.itnk.co.kr/news/articleView.html?idxno=70484
  13. Kang, G. S., & Lee, J. G. (2010, Summer). An exploratory study on the determinants of successful start-up and investment recovery: Focusing on self-employed business entrepreneurship. Paper presented at the 2010 Korean Venture Entrepreneurship Integrated Conference, Seoul, Korea.
  14. Kim, C. B., & Lee, S. H. (2017). A study on the influence of one-person company entrepreneurs capabilities on the performance of firms. Korean Journal of Business Administration, 30 (8), 1387-1407. https://doi.org/10.18032/kaaba.2017.30.8.1387
  15. Kim, E. S. (2023, February 2). [Distribution News] Fashion market settlement in 2022... offline revival amid 'Y2K' craze. Sisacast. Retrieved July, 23, 2023, form http://www.sisacast.kr/news/articleView.html?idxno=36855
  16. Kim, H. C. (2019). Competencies on business continuity: Business preparedness a moderator. Korean Management Consulting Review, 19 (3), 219-228.
  17. Kim, H. M., & Han, Y. J. (2022). The structural influence relationship between startup readiness and startup performance of small businesses. Journal of Corporation and Innovation, 45 (1), 69-86. https://doi.org/10.22778/jci.2022.45.1.69
  18. Kim, H. Y., & Ha, J. S. (2018). The current situation and development strategies of the fashion creative studios in Korea. The Research Journal of the Costume Culture, 26 (3), 265-281. https://doi.org/10.29049/rjcc.2018.26.3.265
  19. Kim, J. H. (2018). A longitudinal study of the relationships between firm performance, downsizing and control type human resource management. Korean Business Education Review, 33 (3), 311-333. https://doi.org/10.23839/kabe.2018.33.3.311
  20. Kim, J. M. (2020). A structural analysis on related variables influencing the entrepreneurship of small business (Unpublished doctoral dissertation). Dankook University, Gyeonggido, Korea.
  21. Kim, S. J. (2010). An analysis on the types of 1 man creative business and its success strategies: Focused on digital content area. Journal of Digital Design, 10 (1), 69- 77. https://doi.org/10.17280/jdd.2010.10.1.008
  22. Kong, T. Y. (2017, January 17). Nine out of 10 founded online shopping mall could not be maintained. Hankyung. Retrieved July, 23, 2023, from http://plus.hankyung.com/apps/newsinside.view?aid=201701179332A&category=AA010&sns=y
  23. Korea Federation of Small and Medium Business (2021). A survey of companies on the online fashion platform. Seoul, Korea.
  24. Kwak, M. S. (2023, February 1). Last year, online shopping transactions exceeded 200 trillion won... travel 94%↑, leisure 98%↑. Yonhapnews. Retrieved July, 23, 2023, from https://www.yna.co.kr/view/AKR20230201072800002
  25. Lee, A. N. (2018, June 13). 7 rules of success for NAVER shopping mall. News2Day. Retrieved September 29, 2020, from https://www.news2day.co.kr/article/20180613105435
  26. Lee, M. M., & Kim, Y. H. (2008). Analysis of critical success factors for internet open market's vendor through comparative study between Korea and Japan. Journal of Knowledge Studies, 6 (2), 177-213.
  27. Lee, S. J. (2005). Growing up in Korea : a 30-year longitudinal study. Seoul: Kyoyookbook.
  28. Lee, T. H. (2023, January 30). The economic landscape has changed dramatically in the three years since Corona... non-face-toface economy such as ICT and online shopping. Herold Economy. Retrieved July, 23, 2023, from https://biz.heraldcorp.com/view.php?ud=20230130000114
  29. Lim, B. G., & Yang, D. W. (2017). The marketing mix ability of online shopping mall founder an empirical study on the influence on the success of ounded: Focused on the moderating effect of entrepreneurship education. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 12 (4) 73-84. https://doi.org/10.16972/apjbve.12.4.201708.73
  30. Menard, S. (1991). Longitudinal research. Newbury Park, CA: Sage. 
  31. Moon, J. H. (2021). The effect of entrepreneur's characteristics on chnology start-up, general start-up and sustainable growth (Unpublished doctoral dissertation). Gachon University, Gyeonggido, Korea.
  32. Oh, S. Y. (2012). A study on determinants of micro-enterprise performance. Journal of the Korea Academia-Industrial Cooperation Society, 13 (12) 5759-5763. https://doi.org/10.5762/KAIS.2012.13.12.5759
  33. Park, H. E., & Yoh, E. A. (2011). Effect of internet clothing soho mall attributes on attitude toward site and revisit intention: Focusing on the difference by on- and off-line clothing shopping dependence. Fashion & Textile Research Journal, 13 (2), 234-241. https://doi.org/10.5805/KSCI.2011.13.2.234
  34. Park, J. G., & Lee, H. J. (2017). Startup recipe -project management for small and strong organizations (pp. 20-21). Seoul: Thoughts and Humans.
  35. Park, W., Chang, J. W., & Lee, S. (2010). A methodological assessment of longitudinal designs in organizational behavior research. Journal of Industrial Relations, 21 , 139-173.
  36. Shin, M. J. (2022, November 2). IMVELY, who was doing well, eventually... shopping mall closures are mushrooming. Seoul Economy Daily. Retrieved July, 23, 2023, from https://www.sedaily.com/NewsView/26DGXT6RKJ
  37. Shong, I. H. (2019). An Empirical analysis on the success and sustainability factors for the establishment of a small business. Journal of the Korean Entrepreneurship Society, 14 (6), 50-69. https://doi.org/10.24878/tkes.2019.14.6.050
  38. Son, M. Y. (2019). Study on success factors of startup with limited capital: Focused on-line fashion store. Journal of the Korean Society of Costume, 69 (1), 109-126. https://doi.org/10.7233/jksc.2019.69.1.109
  39. Son, M. Y. (2020). Case study on the operation of small capital online fashion store: Focusing on 4P mix. Journal of the Korean Society of Costume, 70 (2), 117-134. https://doi.org/10.7233/jksc.2020.70.2.117
  40. Son, M. Y. (2021). An investigation into the online sales channels of small business fashion retailers on portal shopping and fashion shopping malls. Family and Environment Research, 59 (4), 449-463. https://doi.org/10.6115/fer.2021.032
  41. Son, M. Y. (2022). An exploratory case study of a successful online start-up fashion shopping store: Focusing on the entrepreneurial process of a soho shopping mall. Korean Journal of the Science of Emotion & Sensibility, 25 (3), 91-106. https://doi.org/10.14695/KJSOS.2022.25.3.91
  42. Son, M. Y., Kim, H., Yoon, N., & Lee, H. (2021). Fashion start-up. Seoul: KNOUPRESS.
  43. Statistics Korea. (2023. February 1.) December 2022 and annual online shopping trends. Daejeon, Korea.
  44. Yim, M. S. (2014). Defeat your giant: Strategies for merchants. Journal of Digital Convergence, 12 (1), 99-104. https://doi.org/10.14400/JDPM.2014.12.1.99
  45. Yun, H. M., & Nam, J. M. (2022). IPA analysis of the components of the scale-up entrepreneurial ecosystem of startups. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 17 (6), 25-37. https://doi.org/10.16972/apjbve.17.6.202212.25
  46. Yun, S. J., & Choo, H. J. (2015). A qualitative study on market orientation of new designer brand. Journal of the Korean Society of Clothing and Textiles, 39 (6), 838-851. https://doi.org/10.5850/JKSCT.2015.39.6.838
  47. Weon, J. H., & Jung, D. H. (2017). The effect on entrepreneurial characteristics of small business management performance, education. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 12 (1), 111-121. https://doi.org/10.16972/apjbve.12.1.201702.111