Small business owners in Seoul are opening new sales channels through online crowdfunding while cutting upfront production costs and inventory risk. After confirming demand from actual buyers, they are expected to widen their opportunities further, from shelf space at major domestic retailers to overseas markets.
The Seoul Metropolitan Government said on the 14th that its crowdfunding showcase for small businesses, called Botaem Sanghoe, drew about 100 companies and some 15,000 consumers and raised roughly 850 million won ($620,000).
The showcase, organized jointly by the city, the Seoul Credit Guarantee Foundation and crowdfunding platform Wadiz, ran from Aug. 3 to Sept. 18. It was designed to help small business owners who struggle to build online sales channels gauge consumer response and enter new markets.
Among the participants, an alpaca coat offered by AroundX raised 126 million won, the highest total in the showcase. A pet supplies maker, Daedaeng Dokrib Manse, drew 34 million won for its "2.5-liter monster absorption pad," more than 68 times its target.
The showcase used a pre-order model in which products are made only after consumer orders are secured. That allowed small business owners to reduce initial production costs and inventory burdens while testing their products' competitiveness against real purchasing demand.
Depending on how prepared each company was, the city provided discount coupons of 20% to 30%, advertising, training on building product detail pages with artificial intelligence, and one-on-one management consulting. The focus went beyond sales support to helping the businesses stand on their own in the online market.
Follow-up support is also planned. Top performers will receive incentives to join the city's online sales channel support program next year and will be connected with merchandisers at major retailers for consultations and shelf space. Companies with the capacity to expand abroad will receive help listing on global platforms in North America and Japan, along with local marketing support.
"The value here is in helping small business owners confirm the marketability of their products through consumer response and expand their sales channels at home and abroad," said Kim Kyung-mi, head of the city's small business policy division. "We will continue providing training, consulting and market development tailored to what each company needs."