Coupang Eats "Success Stories of Traditional Market Revitalization Programs Continue"

52 Markets Nationwide, Over 300 Franchise Stores, Average Monthly Sales Increase of 77%

[Asia Economy Reporter Kim Cheolhyun] Small business owners in traditional markets, whose in-store sales plummeted due to COVID-19, are experiencing increased sales by joining delivery platforms. Market merchants, who previously relied solely on offline sales from their stores, are creating success stories by shifting their sales structure online.

According to Coupang on the 16th, sales of over 300 franchise stores in 52 traditional markets nationwide that started delivery by participating in Coupang Eats' "Traditional Market Revitalization Program" increased by an average of 77% compared to the beginning of the year as of December last year. A total of 40 Coupang Eats traditional market franchise stores recorded annual sales exceeding 100 million KRW last year. It is evaluated that traditional market store owners, who suffered from the prolonged COVID-19 pandemic for two years, have escaped the "sales cliff" through entry into delivery apps.

The Traditional Market Revitalization Program is a support program for small business owners in traditional markets, where Coupang provides online sales education, coaching on store entry procedures, and coupons for customers. Coupang Eats' program was first launched in August 2020 to help convert the traditional market sales structure, which was mainly offline, to online. To this end, Coupang Eats employees visited traditional markets directly to provide one-on-one online sales training. They taught not only how to use the app but also how to organize menus and increase sales. This was to help small business owners in traditional markets with no delivery experience quickly adapt to the delivery market.

Success stories are also emerging one after another. Last year, Oh Gwangryeol, CEO of Eco-friendly Produce at Gangnam Gaepo Market in Seoul, which recorded sales of over 100 million KRW solely through delivery, said, "The proportion of sales generated online is gradually increasing." Yoo Bokrye, CEO of Mikine Bunsikjip, a snack bar in Pobangteo Market, said, "Monthly sales generated from Coupang Eats tripled in just two months between September and November last year."

Coupang Eats plans to continuously expand the Traditional Market Revitalization Program. They will broaden the categories of supported stores compared to before and provide coupons for takeout orders for offline customers, among other various benefits, to enable more customers to use the service. The program's coverage area will also be expanded so that small business owners outside Seoul can benefit.

Professor Kang Hyunggu of Hanyang University's Department of Business Administration said, "Traditional markets, which struggled against large supermarkets, are finding new opportunities by shifting their sales structure from offline to online due to COVID-19," adding, "It is a positive sign that more small business owners over their 50s, who are not familiar with mobile technology, are successfully joining delivery apps."

This content was produced with the assistance of AI translation services.