Coupang Innovates Direct-from-Farm Process... Contributing to Online Market Expansion for Local Small Businesses
[Asia Economy Reporter Kim Cheol-hyun] A video capturing the scene of live abalone being shipped directly from the production site and delivered to customers' doorsteps by the next dawn has been released. Coupang announced on the 25th that it is delivering live abalone within 18 hours from Wando to customers' homes. The distance from Wando, Korea's largest abalone production area, to Seoul is approximately 400 km.
Coupang has been providing fresh seafood to customers through Rocket Fresh, and especially since June this year, it has started Rocket Fresh direct shipping from production sites, delivering abalone, squid, shrimp, and more directly from local areas, helping fishermen open online sales channels. The Rocket Fresh service recorded more than double the sales growth in the second quarter of this year compared to the same period last year through innovation in the fresh food delivery process.
According to the video released this time, Coupang introduced a special process instead of the usual distribution structure to preserve the freshness, which is key for live seafood. When an order is placed, Coupang's mini logistics center goes directly to the local production site to inspect and check the products and attach shipping labels. The process of storing abalone again in water tanks during transit is eliminated, enabling fresh delivery to customers in a short time.
In particular, abalone farmers have been facing difficulties due to decreased demand caused by COVID-19, mass abalone deaths from high water temperatures and heavy rains. In this situation, Coupang explained that Rocket Fresh's direct shipping from production sites quickly delivers fresh products to customers, receiving positive responses, which has led to sales recovery and increased employment for local distributors, resulting in regional win-win cooperation.
Oh Jeong-mok, CEO of Dabok Fisheries, said, "The existing distribution network involves several steps from wholesalers to seafood markets before reaching customers, but with Coupang Rocket Fresh, the freshness of the production site is preserved and delivered quickly." He added, "Sales have rapidly grown in a short period, surpassing 10 billion KRW in sales in the first half of the year, successfully overcoming the difficult COVID-19 situation."
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