My thoughts on Coupang..

My thoughts on Coupang..

First of all, as a person who directly dealt with large supermarkets… Actually, I thought about the rice and the vegetables..

In the late ’90s, a supermarket landed in Korea (Macro, Carrefour, Tesco Homeplus, Walmart, etc.) An e-Mart, a self-proclaimed local brand, beat them all in Korea… but..

The people who worked in foreign marts were not French, British, Dutch, or American. The manager was only that country. The buyer who bought the product was all Korean..

Regulations go in to protect traditional commercial areas, and when the online market opens in between..

When Coupang leads the online market with a huge investment, all the people who used to be Jeon Doo-hwi will be Korean..

When the supermarket eroded sales by nearly 60% of the small supermarket, they were just as tyrannical..

It is basic to send female employees (1 to 3 people) to the site. Request excessive discount events, increase incentives every time during annual contracts, impose cumulative penalties for non-compliance, demand excessive basic discounts, forcefully increase the draft date, and delete products in case of non-compliance 3 times.. In response to requests for compulsory collection of more than 4% of logistics costs and attendance at various events, on-site requests for support volume, various prizes, helpers, and gifts..

They took full advantage of the manufacturer’s characteristics that there was a similar product.. Every time, they stamped and pressed ridiculous demands into the position of buyer..

In particular, there were many buyers from the top company. He told us this, too..

“I know we’re going too far.. but turn it down when we’re not number one.. of course we have to ask for more than anywhere else…”

In particular, this No. 1 company goes through a rare power trip called the lowest price compensation. If you show the receipt of a cheaper product to the customer center, you get a gift certificate of 5,000 won. They cut the compensation they paid from the company’s payment amount and paid for it. It was like garbage. (I saw a person holding a 5,000 won gift certificate in a bundle in front of the customer center. It was once a trend among people.)

There’s no end to the abuse and behavior they’ve done, but what they’ve learned is stealing..

I think we’re moving to the online market and continuing to do that..

The behavior of cleverly deceiving the law and suppressing suppliers is being followed in the online market, which has already grown to a large extent..

I didn’t go to a large supermarket, I asked to use a traditional supermarket or market, but everyone knows that it’s not easy from a consumer’s point of view..

If Hangyeo or Coupang collapses… Will the next online company seeking that position stop its current behavior?

It’s probably the same..

Another problem is that strong administrative regulation is not easy..

Eighteen years ago, a supermarket that I was managing had up to 68 billion in sales a year. Before I was managing it, it was about 28 billion..

The difference between not being able to mediate the negotiations between the mart and the manufacturer is shown in this sales..

Which manufacturer can refuse their demands in a distribution industry where there are so many similar products, and where competition is intensifying?

I have a short story..

France’s “Carrefour,” which had entered Japan, had tears in its eyes, handed over the whole thing at a low price, and withdrew at a great loss..

In Korea, they got a competition and got a terrible amount of money, and eventually they sold it to Homeplus. At the time, Tesco of England opposed the Carrefour acquisition.. Korean management has been bragging that they will take over without British support..

I demanded a huge and excessive increase in incentives that year, and the debt ratio resulted in beyond my imagination. (I left that year due to illness… I only heard the requirements from the buyer… I don’t know the outcome.)

What happened to the company now, after all?

At that time, E-Mart eventually took over Walmart and put on a show to keep its No. 1 position. Pathetic..

Regulating monopoly strongly… it needs to have a strong methodological alternative for those who understand the world in it deeply..

I actually wrote a few words because I had some grim thoughts..

It’s time for a huge shift in awareness for everyone.. It’s a pity that it’s been a practice for so long that it’s like seeing shallow capitalism..

I came too far..

Long… Thank you for reading this rambling..