Rapid Growth in Aging Regions
Young Talent from Other Areas Join
Expansion of Production Facilities and Surge in Farm Partnerships
"Expanding Nationwide Sales Channels through Local Coupang Fulfillment Centers"
On July 13, Coupang announced that major small and medium-sized manufacturers in "population decline areas" designated by the Ministry of the Interior and Safety?including Imsil in North Jeolla, Yeongam in South Jeolla, Yeongdeok in North Gyeongsang, and Hamyang in South Gyeongsang?have rapidly expanded their sales channels through Rocket Delivery, leading to increased local farm income and youth employment, thereby revitalizing the regional economies.
Employees of The Dongjjok Badaganeun Gil, a company located in Yeongdeok, Gyeongbuk, which is listed on Coupang, are introducing products. Photo by Coupang
These regions had populations exceeding 100,000 in the 1970s, but have recently seen a sharp decline to between 20,000 and 50,000, resulting in a lack of distribution channels for suppliers. "The Dongjjok Badaganeun Gil," a food manufacturer in Ganggu-myeon, Yeongdeok, North Gyeongsang, produces a local specialty called "Hongyeong's Red Snow Crab White Soy Sauce," which contains red snow crab extract. The company's sales jumped from 180 million won in its first year on Coupang in 2022 to 1.258 billion won last year. This year, it expects about 2 billion won in sales (with a total of 7 billion won).
This company succeeded in joining Coupang through efforts to discover local small businesses by Coupang and the Gyeongsangbuk-do Economic Promotion Agency. While the average age of Yeongdeok residents is 57, the average age of the company's employees is 36. The company explained that it has become known as a "promising local enterprise," attracting young talent from other areas such as Yeongdeok, Gumi, and Pohang. It also plans to hire four to five additional employees this year, including those from economically vulnerable groups.
"Greenpia," a frozen vegetable company located in Osu-myeon, Imsil, North Jeolla, near Jirisan, produces over 20 products, including minced garlic and green onions for Coupang's private brand "Gomgom." The company recorded 6 billion won in sales last year and expects an increase of 30% to 8 billion won this year. This represents a fourfold growth compared to its first year of business in 2018 (2 billion won). The number of employees, mainly in their 20s and 30s, has increased by about 50% to around 40 compared to before joining Coupang.
Business performance of small and medium-sized enterprises in Coupang's entry regions. Photo by Coupang
"Herb&Tea," a tea manufacturer in Hamyang, South Gyeongsang, saw its Coupang sales soar from 800 million won in 2022 to 3 billion won last year, more than tripling, and expects to reach 4 billion won this year. The company produces "Pumpkin Red Bean Tea (Dahada)" using aged pumpkins grown in Hamyang, and as sales increase, the volume of aged pumpkins purchased from local farms is also rising.
The volume of aged pumpkins purchased by Herb&Tea from farms in Hamyang-gun increased from 44 tons in 2023 to 76 tons last year, and is expected to reach 100 tons this year. The number of partner farms has grown to around 200, bringing new vitality to Hamyang's farming community. While the average age of Hamyang residents is close to 60, the average age of Herb&Tea employees is about 40, which is significantly lower.
In addition, "Jade Garden," an agricultural corporation in Yeongam, South Jeolla, supplying blueberries, figs, and strawberries, achieved about 5 billion won in sales in its first year on Coupang last year and aims for 6 billion won this year. In its first year of business, the company established partnerships with around 100 local farms in Yeongam, Naju, Suncheon, and other areas.
Coupang plans to invest 3 trillion won in expanding its logistics infrastructure by next year and to broaden the "Coupang Zone" (areas eligible for Rocket Delivery) to more regions experiencing population decline. A Coupang representative stated, "We will strengthen our win-win growth policy by increasing support for Rocket Delivery and marketing for small and medium-sized enterprises in population decline areas, allowing these companies to focus solely on production," adding, "We will do our utmost to help them expand their sales channels nationwide and further revitalize the local economies."
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