April 20, 2024
Economy
Common label to be developed for SME products
[THE INVESTOR] The government plans to develop a common label that can represent all quality products made by Korean small and medium enterprises, officials said on May 30.
The idea is similar to the “cross” label that is used on products made by Swiss companies that pass state quality tests, according to the officials. The Small and Medium Business Administration and the Korea Federation of SMEs will be working together to develop the unified label, they said.
“The brand power of SMEs is too weak, and the companies’ efforts to find a sales route is limited to serving as an original equipment manufacturer,” an official at the federation said.
A survey in February by the federation showed that 83 percent of the 109 SMEs polled experienced limitations in their marketing activities because of the lack of brand recognition. Nearly 28 percent said they would be able to raise their product prices by 6 to 10 percent if their brand is better known, and 98.5 percent answered their exports will increase if they have brand recognition with foreign buyers.
By Alex Lee and newswires (alexlee@heraldcorp.com)
The idea is similar to the “cross” label that is used on products made by Swiss companies that pass state quality tests, according to the officials. The Small and Medium Business Administration and the Korea Federation of SMEs will be working together to develop the unified label, they said.
“The brand power of SMEs is too weak, and the companies’ efforts to find a sales route is limited to serving as an original equipment manufacturer,” an official at the federation said.
A survey in February by the federation showed that 83 percent of the 109 SMEs polled experienced limitations in their marketing activities because of the lack of brand recognition. Nearly 28 percent said they would be able to raise their product prices by 6 to 10 percent if their brand is better known, and 98.5 percent answered their exports will increase if they have brand recognition with foreign buyers.
By Alex Lee and newswires (alexlee@heraldcorp.com)
