Rocket Fresh's Regional Agricultural and Marine Product Purchases Increase Annually
Delivery Time Reduced with Self-Established Mini Logistics Centers
Speed and Freshness Threaten Offline Markets
Contributing to Increased Income and Market Expansion for Farmers and Fishermen
Coupang is strengthening the direct-from-farm category, including agricultural, livestock, and seafood products, in its fresh food dawn delivery service, Rocket Fresh. By streamlining the delivery process, it is quickly and freshly sourcing local specialties from local governments, threatening the existing offline distribution market. With high consumer satisfaction and expanding collaboration with local sellers, this is expected to emerge as a key item in the company's nationwide living zone establishment initiative.
According to industry sources on the 4th, the purchase volume of major agricultural and seafood products directly sourced through Rocket Fresh, introduced by Coupang in 2021, has increased threefold to more than sevenfold over three years. For example, peaches and plums, specialties of Uiseong-gun, Gyeongbuk, saw their purchase volume soar from about 30 tons in the first year to around 220 tons from January to August this year. Directly sourced seafood purchases reached 1,060 tons from January to October, nearly tripling from 370 tons in the first year and surpassing 1,000 tons.
The Rocket Fresh direct-from-farm service differentiates itself with speed and freshness by delivering seasonal agricultural and seafood products to customers' doorsteps within a maximum of two days. If an order is placed before 1 p.m. on the same day, delivery is made by dawn the next day; if ordered after 1 p.m., delivery is made by dawn the day after next. The product range includes domestic and imported fruits, seafood, meat, eggs, and more.
Behind the shortened logistics time for direct-from-farm delivery is Coupang's 'Mobile Flex,' a mini logistics center concept. This system allows tasks typically done at logistics centers?such as inspecting products and printing and attaching shipping labels?to be handled directly at the farm. Basic equipment such as printers for shipping labels, laptops, and software have been installed here. Products packaged at the farm bypass the logistics center and go straight to regional delivery camps to be delivered to consumers.
A Coupang representative said, "Unlike processed foods, which generally have longer shelf lives, consumers have strongly believed that fresh foods must be purchased offline where hygiene and freshness can be verified. However, Rocket Fresh direct-from-farm has significantly shortened delivery times, increasing demand for ordering seasonal fruits and seafood online."
Customer satisfaction is also high. Actual order reviews include comments such as, "I purchased abalone directly from the farm, and the product arrived in a size hard to find in supermarkets," and "The price is reasonable, and all were so fresh that they were still alive." As this service takes root, it is also boosting the profitability of Coupang's main business. In the third quarter of this year, sales in the 'Product Commerce' segment (including Rocket Delivery, Rocket Fresh, Rocket Growth, and Marketplace) reached KRW 9.365 trillion, up 20% year-on-year, with EBITDA increasing by 18%.
From the perspective of local sellers, direct transactions with Coupang have expanded sales channels and increased farm household incomes. Park Jin-hyung, CEO of Hangil Fisheries, which operates a shrimp farm in Sinan-gun, Jeonnam, said, "It was difficult to sell products at fair prices in wholesale markets where prices fluctuate, as well as on open markets. Compared to 2021 when we joined Coupang, we expect sales this year to double to around KRW 8 to 9 billion."
Coupang is expanding collaboration with local governments to supply various regional specialties. Following a 2019 memorandum of understanding (MOU) with Pohang, Gyeongbuk (for seafood such as gwamegi and squid) to expand seafood sales channels, Coupang has successively partnered with Jeonnam (hairtail and yellow croaker), Geumsan, Chungnam (ginseng), Seongju and Uiseong, Gyeongbuk (fruits and rice), and Namhae-gun, Gyeongnam (octopus, horned turban shell, oysters, anchovies, etc.).
Coupang stated, "We plan to continue contributing to regional economic development while providing customers with high-quality agricultural and seafood products at reasonable prices."
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