[MD 2.0]①The Dawn on the Waters off Wando That AI Can’t Know

MD Survival Strategies in the Age of AI
Work Hours Dramatically Reduced Through Data Analysis
"Unpredictable Fresh Products Must Be Checked in Person"

At 11:00 a.m. on June 26, a cage-type abalone farm on Cheongsando Island, Wando-gun, Jeollanam-do, was bustling with activity. With about fifteen days left until Chobok, fishermen were placing kelp, abalone feed, into the farm's waters. Moments later, the mesh net in the sea was slowly lifted to the surface, revealing abalone as large as a palm. Despite the strong winds and rain that day, Kwangtae Kim, Seafood Merchandiser (MD) at GS The Fresh, donned his boots and carefully inspected the state of the abalone at the edge of the farm. He thoroughly checked not only the condition of the kelp used as feed but also the farm's management methods. That day, his routine once again began by catching the first KTX train at dawn. After traveling from Seoul to Naju, and then transferring to a car and ferry to reach Cheongsando, Kim covered a round-trip distance of almost 1,000 kilometers. During the peak season, this demanding schedule is repeated more than once a week.

The 'flower of distribution,' the merchandiser, is evolving. Contrary to concerns that their role would be the first to disappear as artificial intelligence (AI) analyzes commercial areas and trends, handling everything from demand forecasting to price setting, MDs are now entrusting repetitive tasks like collecting and analyzing vast amounts of data to AI. This allows them to refocus on product planning, discovering new brands, communicating with partners, and enhancing consumer experiences by spending more time ‘on the ground.’ At a time when the sense of crisis is spreading that AI will rapidly replace human jobs, The Asia Business Daily examined the current state of AI transformation (AX) in the distribution industry and forecasted the future of the retail market.

GS The Fresh abalone designated farm located in Cheongsando, Wando-gun, Jeollanam-do. Wando=Photo by Han Yeju

"AI as a Work Partner"... Work Hours Dramatically Cut

According to the retail industry on July 15, since November 30, 2022, when OpenAI in the United States unveiled ChatGPT, the world’s first generative AI, tasks such as placing product orders and checking sales records remain the MD’s responsibility today. However, the way they work is changing rapidly. Previously, substantial time was spent sorting sales data, comparing competitor prices, and manually analyzing search trends. Now, AI carries out those processes. Generative AI drafts meeting minutes, prepares product description drafts, and even creates marketing image mock-ups.

The biggest change brought by AI is in 'the MD’s time.' The fashion platform Musinsa introduced AI into its merchandise work, starting with trend research. Previously, to grasp industry trends, MDs navigated countless web portals and social media platforms, personally gathering search data and keywords. Now, AI analyzes search volumes and key terms automatically, delivering comprehensive reports. Jamin Noh, head of the Commerce Unisex & Men’s Division at Musinsa, said, "In the past, we had to dedicate 1 to 2 hours out of an 8-hour day to trend research, but AI has greatly reduced this time. AI can even summarize Google Meet meetings and deliver the summaries to partners, significantly reducing unnecessary administrative work."

Kurly is also leveraging AI as a productivity-enhancing tool. Its recently introduced 'Creative AI' supports repetitive visual tasks, such as producing promotional banners and product detail pages. Previously, MDs, designers, and marketers had to go through multiple rounds of revisions, but with AI assisting significant parts of the process, interdepartmental collaboration has become faster. A Kurly representative said, "With Creative AI, MDs can now focus more on their core responsibilities such as product sourcing and curation strategy development, rather than repetitive production work."

GS The Fresh abalone designated farm located in Cheongsando, Wando-gun, Jeollanam-do. Wando=Photo by Han Yeju

"The Sea Is Unpredictable"... A KRW 100 Difference Made at the Source

MDs are reinvesting their newly gained work hours in the field. Kim visited Wando that day for one reason: to secure enough abalone to supply stores nationwide ahead of Chobok. Wando, which accounts for more than 80% of Korea’s abalone production, becomes the busiest destination for hypermarket merchandisers in the summer. The period from the end of June to Chuseok accounts for about 50% of annual abalone sales in Korea—a critical high season. While abalone consumption has become more widespread year-round, securing enough stock during summer, when demand for premium foods spikes, remains the cornerstone for a retailer’s annual success.

In the past, merchandisers didn’t visit production areas this frequently. There was a time when suppliers had to seek out powerful distributors to plead for their products to be stocked. Now, however, the tables have completely turned. With nationwide supply prices, product quality, and price information now made public and transparent, consumers and competitors alike can easily compare prices. To release even a KRW 100-cheaper and fresher differentiated product than rivals, merchandisers must diligently study local supply price trends and hit the ground running. This is now an essential part of their work.

Kwangtae Kim, MD of Seafood at GS The Fresh, checking kelp, feed for abalone. Photo by Yaeju Han

This is especially true in the seafood market, which deals with live animals and is one of the hardest areas for algorithms to penetrate. Due to climate change, the ocean has become an unpredictable market. Fish species once common have disappeared, while warm-water bluefin tuna, once found only off Jeju, are now being caught in large numbers off Wando and Tongyeong, highlighting the market’s unique characteristics. Just one typhoon can bring all fishing operations to a halt.

Kim said, "The sea has too many variables to use AI extensively. Factors like which sea the abalone are farmed in, what kind of feed (kelp or seaweed) is used, how many compartments are in a cage farm and how the farms are managed—these are what make the difference in quality. These are areas you can only understand by being on-site, building relationships, and having direct conversations with fishermen." He added, "Fresh food merchandisers never buy a product without seeing it for themselves."

An abalone from GS The Fresh's partner located in Wando-gun, Jeollanam-do. Wando – Photo by Han Yeju

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