🛒 What You'll Learn from This Article:

  1. Amidst the consumer recession dominated by Coupang, there's a manufacturing company maintaining steady growth: hy (formerly Korea Yakult). hy's revenue in 2024 reached KRW 1.5191 trillion, marking a growth of approximately 10.3% compared to the previous year. The key to hy's unique success seems to be their distinctive sales and logistics network, the 'Fresh Managers.' Some Fresh Managers have annual sales exceeding KRW 200 million, and considering their total number, their contribution to revenue exceeds KRW 1 trillion. How is this possible?
  2. Door-to-door sales were popular before the digital age but are now often seen as outdated. For instance, the contribution of door-to-door sales in the cosmetics industry has halved compared to the past. However, the 'special' nature of door-to-door sales can still captivate customers. Could hy's Fresh Managers also benefit from this?
  3. It's not just the 'specialness' that drives revenue growth. hy's Fresh Managers could thrive because they are not simply defined as 'door-to-door salespeople.' hy redefined Fresh Managers as mobile cold chain stores and one-person fulfillment centers capable of customer delivery and service. As a result, they achieved an unprecedented expansion. Let's dive into the details based on stories from hy's practitioners.

CHAPTER 1

A Salesperson Generating Store-Level Sales?

I am a long-time subscriber of the YouTube channel 'EO.' Recently, I've been enjoying the 'Choi Sung-woon’s Thought Experiment' podcast series featuring in-depth interviews with prominent figures like VIVE Company's vice president Song Gil-young and Dr. Kim Ji-yoon of Knowledge Play. In this series, I recently came across a surprising thumbnail: Seo Yoon-jung, the top Yakult salesperson in the country and a Fresh Manager.

The term Fresh Manager might still be unfamiliar to some. It refers to hy's door-to-door salespeople, previously known as 'Yakult Ladies.' Although often mistaken as a relic of the past, Fresh Managers are very much active. According to media reports, the average annual sales of the approximately 11,000 Fresh Managers nationwide exceed KRW 100 million, suggesting that their combined sales approach KRW 1 trillion.

For instance, Seo Yoon-jung, featured in EO content, was selected for hy's 'Hall of Fame,' a distinction for the highest-selling Fresh Managers. Her annual sales in 2023 were an impressive KRW 240 million, comparable to the average annual sales of a Compose Coffee shop. This means that an individual door-to-door salesperson achieved sales equivalent to those of a coffee shop.

As a result, the proportion of Fresh Managers from the younger generation (20s and 30s) is increasing, albeit still small at around 5%. This trend has grown 29 times over six years, indicating a growing interest from the younger generation. Fresh Managers are not just a nostalgic presence but are generating significant sales and attracting attention from future generations. Analytical content focusing on these young Fresh Managers is becoming more common, as seen in the mentioned YouTube videos.

Currently, Fresh Managers are the core network making hy's business unique. They create a distinct 'differentiation' in the last-mile logistics service that other commerce companies lack. This differentiation is reflected in hy's growth strategy. Today, we'll discuss the future prospects of hy's subscription economy service along with a comprehensive overview.