As Partner Store Sales Increase, Collaborative Farms Also Experience 'Rocket Growth'
As the business scale of local small business owners entering Coupang grows, the regional economy, which has been struggling with challenges such as youth population outflow and low birth rates, is developing and leading to job creation.
Coupang reported that regions facing population decline are gaining vitality as several farms and fisheries that increased employment by pioneering new sales channels have achieved success. The photo shows Yoon Jun-ha, CEO of Hanul Beolkkul, who started the Coupang sales program Rocket Growth. Photo by Coupang
According to Coupang, Jeong Min-ja, a 61-year-old CEO of Ajuma who produces and distributes fruits and vegetables in Yeongdong, Chungbuk, saw her sales grow fourfold from 300 million KRW in the first year of entering the online market to 1.2 billion KRW after joining Coupang. With the significant increase in sales, CEO Jeong needed manpower to handle marketing and online sales, hiring a marketer in his 30s who had worked in Seoul and three employees aged between their 20s and 40s.
Meanwhile, not only producing directly but also purchasing and distributing fruits from local farms around Yeongdong, the number of partner farms increased from 3 to 30. Due to the sales growth, each farm’s business scale grew tenfold, resulting in direct and indirect job creation effects in Yeongdong-gun, where the population had been rapidly declining.
Yeongju, Gyeongbuk, which barely maintains a population of around 100,000, is also a region expected to experience the largest population decline in Gyeongbuk Province over the next 20 years. However, there are stories of overcoming this crisis through collaboration with Coupang.
Yoon Jun-ha, a 49-year-old CEO of Hanul Beekeeping who sells honey in Yeongju, had monthly sales of less than 100,000 KRW at the time of startup, but after joining Coupang, monthly sales exceeded 10 million KRW on average over three months, growing the business enough to build a new factory. In two years, the number of farms collaborating with Hanul increased to five, and for the first time, employees were hired. Unlike working alone at the beginning, Yoon now employs six staff members working together.
CEO Yoon said, "Since starting Rocket Growth, I just focus on brand marketing, and Coupang takes care of all sales and customer management, so it feels like riding on a rocket." Rocket Growth is a service that provides full fulfillment services including storage, packaging, inventory management, delivery, and returns once small and medium-sized merchants stock their products.
Geum Ju-yeon, who operates a beekeeping farm in Yeongju and collaborates with Hanul Beekeeping, said, "When we bring honey that we have difficulty selling to Hanul, the CEO sells it well through Coupang, so it feels like a partnership."
In Namhae, Gyeongnam, a representative depopulated area where the total population has decreased by about 10% over the past decade, job creation is also occurring through expanded sales channels via Coupang. Park Cheol-wan, a 58-year-old CEO of Neulpureun Fisheries Cooperative, who used to supply seafood to offline retailers such as large supermarkets, has achieved sales of about 4 billion KRW, accounting for about 20% of total sales, since Coupang started the fresh food dawn delivery service 'Rocket Fresh' in 2021. During the COVID-19 pandemic, sales dropped by about 30%, forcing a reduction in staff, but after collaborating with Coupang, as catch volumes increased again, the number of employees was increased to about 20, resulting in employment effects.
There are also regions where employment has significantly increased due to direct support from Coupang. Sangju Junghwa Agricultural Cooperative in Sangju, Gyeongbuk, which supplies Shine Muscat grapes, is actively hiring, having recruited 15 fruit sorting workers last year. This is thanks to Coupang directly purchasing 70% of the 1,000 tons of agricultural and marine products supplied, securing a stable sales channel. The number of employees at member farms in Sangju supplying fruit to Sangju Junghwa Agricultural Cooperative also increased from 70 to 170.
A Coupang representative said, "Local small business owners, who had been struggling due to population decline, are gaining new opportunities after joining Coupang, and as jobs increase, the regional employment effect is also growing. We will continue to provide strong support and cooperation to small business owners so that regions collaborating with Coupang can become vibrant towns bustling with youth."
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