Economic Outlook and Survival Strategies for Self-Employed Businesses

1. Background of the Current Downturn in Self-Employment Business

Changes in Population Structure: Aging population and declining birth rates leading to a reduction in consumption and the main economic driving force.
Shift from Main Career Jobs: Past baby boomers and Generation X retiring from their main career positions and abnormally flooding into the startup market.
Overcrowded Self-Employment Market: Due to lack of job creation, self-employment has been transformed into a solution, leading to excessive competition.
Reduced Consumption: About 20 million people are cutting back on dining out and shifting to in-home consumption.

Tangible Evidence of Economic Downturn

Low hotel booking rates at the end of the year.
Significant impact on the restaurant industry due to the contraction of dining out and company dinner culture.

2. Survival Strategies from a Franchise Business Owner

Success Story of 'Cheongchun Dakkochi' (Youth Chicken Skewers):
- Global expansion through manufacturing and distribution platforms (70 stores in Thailand, USA, Canada, etc.).
- Actively pursuing cost reduction strategies for survival (royalty exemption, reduction in subsidiary material costs).
- Maintaining a balance between sales and costs through systemization tailored to the local market.

Cost Reduction Focused Strategy

Actively seeking survival through basic cost reduction rather than unreasonable investment for sales growth.
Maintaining a stable sales structure through royalty exemptions and operational efficiency improvements.

3. Survival Tips for Self-Employed Individuals

Focus on the Basics:
- The quality and taste of food are fundamental.
- Thoroughly maintain basic elements such as store cleanliness and service mindset.
Consider Consumer Trends:
- Polarized consumption trends: divided into "high-priced consumption on special occasions" and "low-priced consumption in daily life."
- A concept with core competitiveness on a small scale is essential.

Long-Term Perspective

Based on Japan's economic experiences, brands and services with high price competitiveness are likely to show continuous growth in South Korea as well.

4. Core Elements of Success in Self-Employment

Agile adaptation to changing market trends.
Particularly, localization strategy is essential when expanding globally.
In the long term, the top 20% of successful stores maintain the basics well and secure differentiated competitiveness based on these.

< Summary >

The self-employment business is deteriorating due to changes in population structure, reduced consumption, and excessive competition. In this situation, strategies such as cost reduction, adaptation to market trends, and focusing on the basics are the core of survival for self-employed individuals. A localization strategy is also needed for global expansion, and flexible responses to changing consumption patterns are essential.

Crafted by Billy Yang
[Related Articles at Next-Korea.com]
1. Key Tips for Self-Employment Success Strategies
2. Franchises Growing Even in Economic Downturn

*YouTube Source: [경제 읽어주는 남자(김광석TV)]

– 글로벌 프랜차이즈 대표가 말하는 ‘암울한’ 자영업 현황 | 취중전망 3편

Jack Ma's Return and the Variables in Chinese Politics and Economy

1. Jack Ma's Return and Current Situation

Jack Ma, once one of the most famous entrepreneurs in China and the world, made a name for himself as the founder of Alibaba and Ant Group.
He disappeared from public view after 2020. This is deeply related to conflicts with the Chinese government, especially the ban on Ant Group's IPO.
Recently, Jack Ma's reappearance has garnered attention from both China and the world.

Jack Ma's Return

Jack Ma appeared at an event related to Ant Group, which shocked many.
Among his remarks, the expression "No rainbows without rain" seems to indirectly imply an open confrontation with Chinese President Xi Jinping.
It is interpreted as a major change that Jack Ma, who had been very cautious after his conflict with the Chinese government, is speaking out again.

2. Analysis of the Background of the Conflict Between Jack Ma and Xi Jinping

The Beginning of the Conflict

Jack Ma's outspoken attitude and global influence were considered political risks.
In 2020, Jack Ma criticized Chinese financial regulations in a lecture, challenging the government, and soon after, Ant Group's IPO was suspended.

The Threat of Jack Ma as Seen by the Regime

Jack Ma was not seen merely as an economic power. He interacted directly with world leaders, showcasing China's image on the global stage.
However, under Xi Jinping's regime, these actions were likely perceived as a threat to power.
In particular, Xi Jinping wants the absolute control of the Communist Party and wanted to block the possibility of private companies surpassing the party's policies.

3. Suspension of Ant Group's IPO and Sanctions on the Financial Industry

The Ant Group Incident

Ant Group, a company at the forefront of the financial tech revolution, was scheduled to go public on the Hong Kong and Shanghai stock exchanges in 2020.
However, the Xi Jinping government abruptly suspended the IPO. It is largely interpreted that this was intended to strengthen the Communist Party's control within China's financial industry.

Expansion of Regulations on Private Companies

Not only Ant Group but also major Chinese technology companies such as Tencent, Baidu, and TikTok began to be subjected to strict management and sanctions by the regime.
This seems to be an attempt to put technology companies under state control under the guise of national security and data management issues.

4. Political and Economic Context of China

Xi Jinping Regime's Hard-line Stance

Xi Jinping is following a dictatorial model from the Mao Zedong era. He has taken measures to suppress private companies while emphasizing anti-monopoly regulations and technological independence.
This is connected not only to economic reasons but also to moves to secure political stability and the dominance of the Communist Party.

Various Rebellions Within China

Within China, there is implicit resistance to Xi Jinping's policies even among the military, academia, and high-ranking officials.
Some in the military and economists are expressing dissatisfaction indirectly rather than directly opposing Xi Jinping, and this continues to have the potential to lead to political rifts.

5. What Factors Encouraged Jack Ma?

Possibility of Changes Within the Regime

There have been signs of increasing internal conflict over Xi Jinping's policies in recent years.
In this context, it can be interpreted that the re-emergence of Jack Ma suggests a significant crack within the regime.

Influence of International Relations

The conflict between the United States and China and changes in the global economic environment may have affected China's internal political landscape.
There are signs that Xi Jinping's hard-line stance is losing support from the military and high-ranking officials.

6. Future Prospects

Jack Ma's return may be an important signal that Chinese politics and economy are changing.
His emergence seems to be not just a personal return but a change in the power dynamics within China.
This could have a significant impact on the stability of Chinese politics and whether to restructure the innovative economic structure.

< Summary >

Jack Ma has reappeared in front of the public after a strong conflict with the Chinese government.
His return has strong political and economic implications for the Xi Jinping regime.
The Ant Group IPO incident and private company regulations demonstrate the Communist Party's intention to intensively control the economy and power.
Xi Jinping's approval ratings are sluggish within the Chinese regime, and Jack Ma's return is likely to be a factor that further highlights this.
These changes suggest a significant crossroads in the Chinese economy and politics.