[Smart Startup Era] "The secret to 2 billion won sales with abalone? The answer is detail"

'Yujin Susan', an Abalone Farming Business in Wando,
Pursues Premium Strategy by Joining Gift Market
Focuses on Quality Improvement and New Product Development to Secure Sales Channels

Editor's NoteThe number of small business owners in Korea is 7.2 million. One out of every ten people runs a business under their own name or signboard. Most small shop owners struggle to make a living. Last year, nearly 4 out of 10 small business owners (36.2%) reported losses. Six out of 10 (63%) saw their debts increase (Small Enterprise and Market Service). However, there are also people creating incredible success stories, such as a local butcher shop owner with annual sales of 10 billion KRW, or a fisherman in Wando, Jeollanam-do, selling 2 billion KRW worth of abalone annually. These are people who have embraced the changes of the times and adapted to non-face-to-face and digital environments. Utilizing online platforms has become a prerequisite for startup success. Now, small business owners must move beyond adversarial relationships with online platforms and actively leverage the platforms' capital, recognition, and technology to meet customers through 'smart startups.' We listened on-site to the secrets of success from those who have succeeded in smart startups.

Product image directly photographed by Yujin Susan [Source=Kakao Gift]

"I sell abalone, but I don't compete with others in the same industry. I compete with overseas luxury perfumes and hand creams."

Gifts are items given to cherished people. Since they represent one's feelings, people do not buy them just because they are cheap. The more precious the recipient, the more carefully the gift is chosen. One even imagines the recipient's expression upon receiving the gift. Sometimes, one gives a gift of a similar value to what the other person gave. No matter how fast the world changes, people will continue to give and receive gifts 100 or 200 years from now. Now, with just a smartphone, one can easily select and pay for gifts. You can send a gift even if you don't know the recipient's home address.

When asked 'What is a gift?' to Shim Suhong (37), who runs an abalone aquaculture business in Wando, Jeollanam-do, he gave the above answer. It was the result of much thought and consideration about gifts. In 2021, he joined KakaoTalk's 'Gift' service as a seller and relearned the concept of gifting. His experience working in PR and marketing at a large corporation L in Seoul after graduating from university also helped. Three years ago, he returned to his hometown and took over the abalone aquaculture business (Yujin Fisheries) that has been ongoing for over 30 years since his grandfather's time. Shim’s fishing grounds are on Neopdo, which is about 40 minutes by ferry from the southernmost tip of Jeollanam-do. It is a remote place where boats cannot sail on windy days. Fresh feed is given in the clean, deep sea far from the mainland, producing high-quality abalone.

Shim Su-hong, director of Yujin Susan operating in Wando, Jeonbuk, is showing abalone ready for shipment.

Freshness is vital for abalone, so it is difficult to store for long periods, and its price is higher compared to other seafood. Therefore, securing a stable sales channel was crucial. "Fishermen are generally proud and conservative. Partnering with digital companies to develop sales channels was not an easy decision." With youthful enthusiasm, he tried selling on various online platforms, and the premium abalone sets received the best response. Among them, KakaoTalk Gift recorded sales of 2 billion KRW, establishing a solid sales channel. Shim said, "I worked hard to show that abalone has value as a gift." He paid detailed attention starting from the product photos (thumbnails).

"Prices vary depending on the quantity, but on general open markets, all product photos look the same. On KakaoTalk Gift, each photo was taken to match the actual image. We prepared meticulously, including props, to make the products look as luxurious and appetizing as possible." Shim does not compete on price with other abalone sellers. Instead, he competes with luxury perfumes, cosmetics, and hand creams of similar price ranges. The key was to make the product look luxurious and valuable enough to want to gift to someone special. He built a small studio for photography and hired an employee with food stylist experience. The product detail pages kindly provide abalone recipes, handling, and storage methods.

Thanks to the nature of 'Gift,' which is not focused on price, various attempts became possible. Hwang Cheolyong, a KakaoTalk Gift MD working with Shim, said, "Gift is less price-competitive than other e-commerce platforms. It focuses more on increasing value, so we try various things with partners and have a mutually beneficial structure." Also, as sales data accumulates on Gift, they can anticipate the required quantities for holidays like Chuseok and prepare in advance. Having secured a stable sales channel, Shim is focusing on quality improvement and new product development. He said, "Because we receive real-time feedback and cold evaluations through star ratings, we strive even more to improve quality." He added, "As a successor to fishermen, I will create synergy with new distribution channels to pass on abalone aquaculture to future generations."