The prolongation of the COVID-19 pandemic was hard on all businesses, but for small and medium-sized enterprises (SMEs) and farms engaged in eco-friendly agricultural practices, it was a full-on crisis.
“Eco-friendly produce already cost relatively more, so they are difficult to distribute,” said Jeong-ryeol Kim, CEO of an eco-friendly agricultural SME called You and I. You and I, which is based in Jeju, has supplied various vegetables to local schools and wholesale markets for the past 20 years. But when attendance was suspended at schools, which accounted for 80% of sales, Jeong-ryeol saw his company’s monthly sales drop by nearly the same amount.
But not all hope was lost. Rocket Fresh, which launched at the end of 2019, significantly increased delivery capacity and volume as offline distribution became difficult due to the pandemic. With the introduction of Fresh, a whole new sales channel was opened to small farms and companies like You and I, powered by customer demand for the fast, free deliveries provided by the service.
“If Coupang’s Rocket Fresh could not quickly deliver to customers nationwide, eco-friendly produce like ours could not have withstood the COVID crisis,” said Jeong-ryeol. “And while existing distribution channels such as department stores, traditional markets, and marts have a fixed consumer base, Coupang can grow rapidly as it brings in customers of all ages and consumption trends.”
This kind of growth was critical for recovery. In fact, by the fall of 2021, You and I achieved annual sales of 10 billion won (around 7.7 million dollars)—a 25% increase from the company’s performance in 2019 before COVID. Currently, Coupang accounts for 60% of You and I’s total sales, and the company even increased the number of its employees from 50 to 55.
The recovery and growth enabled through Coupang’s investment and efforts have been a boon for small farmers and SMEs all over Korea. “We had been supplying our products to local marts, but for the first time, we started selling them online through Coupang,” said Dong-gun Seok of Miryang Farmers Federation, which began selling eco-friendly produce through Coupang since mid-2020 after signing a memorandum of understanding (MOU). “Sales this year are expected to more than double compared to last year.”
Meanwhile, Woo-jeong Kim of the Jeonnam Regional Headquarters of the National Agricultural Cooperative Federation said, “With Coupang’s Rocket Fresh, we’ve been able to reduce logistics costs and maintain the freshness of our products through Dawn Delivery.”
Coupang continues to work together with agricultural federations and local governments, signing MOUs with Jeollanam-do, Miryang-si, Pohang-si, Chungju-si, and other regions to help revive local economies. “Local agricultural companies suffered many difficulties in distribution due to COVID-19,” said Ji-ho Yoo, the head of the Eco-Friendly Agriculture Team at the Jeju Special Self-Governing Province Office. “But with Coupang, their sales channels are expanding nationwide, which is having a positive impact on local communities. At the provincial level, we plan to encourage the growth of farmers through promotional and public relations support.”
