One of the flagship programs that the SBA offers is Hi-Seoul Branding. It aims at promoting qualified SMEs in Seoul's by endorsing their products and showcasing them on the international stage.
The Hi-Seoul Brand program is a marketing campaign waged by the SBA for selective Seoul SMEs which have gone through a stringent screening process to become a Hi-Seoul Brand Company. Mr. Son Kyung-youn, Director General of the Marketing Division at SBA was quoted as saying: "Since 2004 when the brand logo was first introduced, SBA has made all-out efforts for positioning the Hi-Seoul Brand as a premium communal brand recognized in the global arena. Being a Hi-Seoul Brand company means having pride in itself and creating trust with international business partners, gaining recognition at home and abroad," he continued. "You can save a great amount of time and effort for overseas marketing thanks to a variety of direct and indirect marketing promotions sponsored by the SBA such as print or media ads, press releases, or trade missions. Of course, I am afraid this program is not for everyone. But you are about to see the number go up to 80 in 2009 to let more companies take advantage of it." At present 60 companies are privileged to exercise the brand logo and benefit from the attached trade supporting programs.
Statistics by the Korea National Statistical Office show that there are estimated to be more than 90,000 small and medium businesses in Seoul. According to Mr. Son, about two thirds of them are engaged in trade activities, seeking new markets for export. Making inroads into fresh territory can instantly boost their bottom line, especially now, as they are plagued with a global recession.
The Hi Seoul Brand comes into play when grouping otherwise unrelated products together and making them unique in more powerful ways. Director Son gave examples of this group marketing - how the SBA carries on a marketing campaign exclusive for the Hi-Seoul Brand: "When Hi-Seoul companies participated in the Canton exhibition in China this year, one of the famous exhibitions in Asia, we have, under the roof of Hi Seoul, orchestrated various marketing work to win targeted buyers' and customers' hearts and minds at the exhibition site. For instance, we ran specially- designed promotional video clips repeatedly before them and bought a big ad section in a world renowned buyers' catalog." The marketing campaign also goes to global on-line B2B or B2C trade sites such as Amazon.com, Alibaba.com, Global Sources and the like. He said: "We have witnessed a good number of business deals that have been made through these collective activities."
Now that the brand is getting recognized by the public in the global arena, the SBA plans to elaborate its brand by sub-categorizing the Hi Seoul Brand into three segments - Preliminary Companies, Brand Companies, and Star Companies. This arrangement is expected to enhance the strength of its existing brand value.
On top of the Hi-Seoul Brand program, Mr. Son gave details of what the SBA does for small businesses as the marketing arm of the City of Seoul; its mandate is to create exposure for Seoul-based SMEs in the global market. The Marketing Division under Mr. Son's supervision annually dispatches over 10 trade delegations and partakes in more than 15 overseas exhibitions, and has hosted numerous foreign trade missions to Seoul. By maneuvering those programs oriented for exporting, his department has tried to make them more practical. To that end, he first introduced the 3 level marketing system a couple of years ago which is now widely used in all trade programs and even copied by other organizations. "I reckon the key to success in business is how prepared you are, how professionally you deal with your potential buyer on the table, and finally how you close up a deal after the meeting. These make a huge difference after all," said Mr. Son. "In other words, what matters is how much you do your homework beforehand, which most of us take lightly."
When it comes to overseas trade delegations, he briefed the steps that the SBA takes. The first thing that his team does is conduct a thorough feasibility study on products or items of which applicants wish to sell at a targeted market like Hong Kong, China, Japan, India, Vietnam, or other markets. Once the team selects a pool of around 15 of the best candidate companies, they start activating a comprehensive pre-marketing system. The team holds an instructive seminar for those who plan to go overseas by inviting trade-savvy businesspeople who share their first-hand experiences and give insightful and practical information on the market. The SBA also provides an on or offline platform where the beneficiary companies can meet other trade support agencies like the Korea Trade Investment Promotion Agency (KOTRA), or private marketing consultants. After returning from business trips, SBA provides follow- up services for participants in a bid to help them finalize a deal with buyers that they've met on a mission.
Other than trade delegations, SBA has cautiously selected and participated in 14 international fairs or exhibitions this year in the US, Japan, Singapore, Hong Kong, and Germany where it sets up communal booths called Seoul Pavilions to give a place to Seoul companies to conduct sales pitches. Mr. Son said: "The beauty of being part of those exhibitions is providing Seoul exporters with chances to meet up with a great number of proven international buyers or business partners thanks to sponsorship from the City of Seoul."
For very small businesses that are likely at the very early stage of international trading, there are special online offerings. For those who lack overseas trading experiences or are short of manpower, SBA operates online sites for tendering trade leads and tips for them. Around 700 very small businesses have benefited from the program, according to Mr. Son.
Though the SBA has a relatively short history, it has consistently executed a wide range of programs through good and bad times. Now thanks to the Mayor of Seoul, Mr. Oh Se-hoon, the business scope of SBA has panned out into soft industries like industrial design, fashion design, digital content, and conventions, which are all believed to be the next bread and butter for the Seoul economy.
The term culturenomics, first coined by Mayor Oh, means to create high added value and enhance urban competitiveness based on culture. This term is now widely applied to various industries. The cross-disciplinary concept of culture and economics is engineered to boost the city's economy and make it more business friendly. Industrial design and tourism act as a catalyst for putting the concept into practice. A handful of signature programs have been initiated by Mayor Oh; holding the Seoul Design Olympics, hosting the World Design Capital Convention, campaigning for the Street and Han River Renaissance, and building the Dongdaemun Design Plaza & Park, which are all to promote and encourage the use of design and tourism to further the sustainable economic and cultural development of Seoul.
