“Digital transformation, what is it?”… Blind spot for 86% of the beauty industry

Although the beauty industry is increasing jobs through steady growth, it has been found that the benefits of the digital transformation support policy are not properly enjoyed.

Goyang Municipal Research Institute Logo
Goyang Municipal Research Institute logo [provided by Goyang Municipal Research Institute, resale and DB prohibited]

According to the report ‘Analysis of Digital Literacy and Digital Transformation Behavior of Small Business Owners in Goyang’ recently released by the Goyang Municipal Research Institute on the 3rd, most workers in the beauty industry are very small.

There are a total of 3,069 beauty stores registered in Goyang, including 1,767 hairdressing businesses and 627 skin care businesses, and 2,875 stores, or about 95%, are small businesses.

About 67% of these establishments had less than 50 million won in annual sales because they could not keep up with the trend of the times because they insisted on traditional business methods.

About 47.3% of stores in the beauty industry tried to operate using social media (SNS), but gave up digital conversion after experiencing difficulties in editing images and videos.

Even though the government increases the budget for digital transformation of small businesses every year, only a few beauty shops benefit.

49.4% of beauty businesses did not know about the government support program at all, and 36.8% answered that they had heard of it but did not know the contents, so a total of 86.2% were placed in a blind spot of the government support policy.

On October 18, 2022, the Osong Cosmetics Beauty Industry Expo held at Osong Station, KTX, Cheongju
On October 18, 2022, Osong Cosmetics Beauty Industry Expo site Yonhap News data photo held in the vicinity of Osong Station, KTX, Cheongju

36.1% of these establishments responded that they had intentions of digital transformation, so a customized support policy at the government or local government level is desperately needed.

Jang Young-yong, head of research, suggested, “In order for small business owners to learn how to fish in a digital environment, programs such as financial support, education/consulting, and customized support must be prepared through accurate demand research and analysis.”

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