The Path to Stronger Urban Competitiveness

In urban spaces that continue to develop day by day, the status of alleyways is steadily rising. Once symbolic of dark and secluded places, alleyways now symbolize spaces transformed into up-and-coming commercial districts as distinctive business owners move in. And in these spaces, urban workers display a stronger-than-anywhere-else tendency to spend willingly, so long as the quality of goods and services matches their expectations. As traditional commercial districts have faltered one by one, these new commercial areas have emerged as the centers of urban consumption.

More and more people are seeking out these rising alleyway commercial districts, wanting a higher level of quality and new experiences there. The shops in these areas, too, seek to offer more differentiated services and experiences through fierce competition. It is precisely these developments that are raising the level of urban consumption and culture.

That is right. Alleyway commercial districts are no longer what they once were. In the past, they were simply places to eat or buy things, but the reasons people visit them are shifting from such direct purposes to more indirect ones. This change also stems from changes in technology and the social environment.

The development of e-commerce is a leading example of this shift. Since online shopping began in earnest in the early 2000s, e-commerce has steadily expanded its reach. In the past, if people wanted to buy something, they had to head straight to such alleyway commercial districts. To buy clothes, they had to go somewhere like the Dongdaemun shopping malls, and to buy electronics, they had to go to places like Yongsan. But now, very few people go there specifically to buy clothes or electronics. We live in an age when everything can be ordered online. Even when people visit physical stores today, unless they are in a real hurry or cannot find something they like, they tend to order online; choosing and buying directly in the shop is becoming less and less common. Restaurants, too, face similar competition with the emergence of ready-made meals.

Nevertheless, people still seek out alleyway commercial districts because they can enjoy experiences through consumption there. So-called “hot commercial districts” are a case in point. Trendy neighborhoods such as Yeonnam-dong, Mangwon-dong, and Euljiro are increasingly being filled with shops that match the atmosphere of the district itself. People visit these alleyway commercial areas not only because they offer good food and coffee, but because what they are consuming is not simply the act of filling their stomachs or buying goods, but the atmosphere, experience, and culture embedded in those acts. In other words, alleyway commercial districts are increasingly being perceived by consumers as a kind of theme park.

Anyone who has traveled abroad will know well that much of the pleasure comes from experiencing a country’s distinctive culture and atmosphere. And it is precisely in order to enjoy that culture and those experiences that people spend money in local shops and immerse themselves in them. So unless one is focused solely on experiencing the grandeur of nature, one ends up visiting famous local establishments in the city, walking its streets, and consuming there. Likewise, foreign tourists who come to Korea also walk our streets and alleyways, seek out such experiences, and spend money there.

Given these trends, do Korea’s major cities and the alleyway commercial districts within them provide experiences commensurate with our country’s economic standing and level of development? Some do, but many do not. According to Statistics Korea data, in statistics on preparation periods for new self-employed business owners, more than half responded that they had prepared for less than three months. Such a short period is far too brief to analyze the business item, the commercial district, and consumer demand, and to build competitiveness.

Consumers in modern cities are demanding more and more, and their standards continue to rise. The same is true of tourists visiting Korea. What they expect from alleyway commercial districts is precisely that kind of experience and service. One may think of each establishment as just a single shop, but together they form a commercial district and become part of the city. Consumers have the right to enjoy better experiences and services. That is exactly what alleyway commercial districts should provide, and they need to offer higher-quality services and experiences accordingly. That is also the path to stronger urban competitiveness.

Youngjoon Kim / Urban Critic (author of The War of Alleys)

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Original title: 더 나은 도시의 경쟁력으로 이어지는 길

Author: Young-jun Kim

Date: 2018-09-12

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=column&pn=16&idx=11114