Coupang "Doubling Small Business Sales Through Cooperation with Local Governments"

Created 100 Billion KRW Fund in Collaboration with Government and Local Authorities in H1, Supporting 2,000 Small Businesses
Sales Growth Rate of Small Businesses in Coupang Regions More Than Doubled in H1 2020 Compared to Previous Year

[Asia Economy Reporter Kim Cheol-hyun] Sales of local small businesses listed on Coupang through collaboration with local governments doubled in the first half of this year compared to the previous year.

On the 25th, Coupang announced the publication of the "2020 Cheer Up Korea" report containing this information. Since April, Coupang has collaborated with nine local governments nationwide to directly purchase and promote the sales of products from small businesses whose sales channels were cut off due to COVID-19. During this period, Coupang and local governments raised funds worth 100 billion KRW through events such as the "Cheer Up Korea Special Exhibition" and the "Korea Together Sale," supporting over 2,000 local sellers.

According to data surveyed by Korea Credit Data targeting 600,000 small businesses nationwide, while the average sales of local small businesses decreased by 8% in the first half of the year, small businesses listed on Coupang saw sales increase by more than 100%. In particular, Daegu Metropolitan City, which was most affected by COVID-19, and Jeju Special Self-Governing Province, where tourists decreased by 40%, experienced sales declines of 13% and 11%, respectively, suffering the greatest damage. However, small businesses listed on Coupang in Daegu and Jeju saw sales growth of 100% and 171%, respectively.

The report also included vivid cases of participating local small businesses. Elfood, a fruit company in Cheongdo, Gyeongsangbuk-do, increased its monthly sales more than tenfold within four months of listing on Coupang through Rocket Fresh delivery. Waon Fisheries, which cultivates cockles in Suncheon, Jeollanam-do, achieved sales of 200 million KRW within five months of listing on Coupang. Additionally, Ihing, a clothing retailer in Busan, struggled with expensive offline rent but saw its monthly sales increase thirtyfold within eight months after listing on Coupang.

Professor Jeong Yeon-seung of Dankook University’s Department of Business Administration said, "In the prolonged untact era, digital has emerged as a key factor for regional economic revival," adding, "Coupang’s direct purchase and direct delivery system can simultaneously help sellers, customers, and the development of local communities."