About two months have passed since the government introduced the open price system. It has been being operated in many countries since long ago. Korea is not the first country to introduce the system. There are some examples of other countries, which we can compare with Korea.
The U.S.A. introduced its open price system in 1975. A law, making suppliers mark the suggested retail price(SRP) as a obligation, had been in force until then. However, it was abolished because of opinions that the law had made bubbles in prices. In the U.S.A. now, whether companies mark the suggested retail price or not is up to them.
Japan is operating the suggested price system in a similar way to Korea. Both countries only apply the open price system to certain items, whose gaps between SRP and the market price are excessive. If the gap is higher than 50%, companies must conform with the open price system, and if the gap is less than 33%, companies are permitted to mark the SRP.
In some other countries, England has been operating a law prohibiting the double price system, and Germany has been prohibiting manufacturers from compelling distributors to sell the item at the price fixed by manufacturers. In the most countries that introduced the open price system, marketing that had deceived consumers was disappeared and prices generally decreased. It is because distributors decreased the price to lure more customers. Other distributors impoved the service level to compete with their opposition.
Unfortunately, Korea can't say that the open price system is successful yet. It is causing opposite effects now. Many merchants have suffered great losses and consumers are in confusion. Unless the government proposes a clear solution, the open price system will become a headache for Korea.
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