Coupang Expands SME Export Channels in Taiwan E-commerce

[Financial News] Coupang is hosting a large-scale promotional event in Taiwan for the first time to expand sales channels for SMEs. Starting with this event, Coupang plans to regularly hold promotional events in Taiwan to support the sales growth of Korean SMEs.
On the 19th, Coupang announced that it would hold the 'Best K-Brand' promotional event through the Taiwan Coupang app until the 24th. A banner stating 'Korean Jewelry Brand, Up to 60% Off' is displayed on the main screen of the Taiwan Coupang app, showcasing over 1,000 products from SMEs, including small business owners with annual sales of less than 3 billion won. Focusing on categories popular among Taiwanese consumers, such as K-beauty, K-food, household goods, baby products, and fashion, excellent Korean SMEs are introducing a variety of products. As Coupang launched the Wow membership in Taiwan earlier this year, local customers can purchase K-brand products through free rocket delivery.
In this promotional event, 'hidden champion' SMEs, proven for their excellent quality in Korea, present a variety of products. A Coupang representative stated, "We have occasionally held promotional events to expand the promotion of K-brand products in Taiwan, such as during the Guanggun Festival," adding, "This event is noteworthy for showcasing a large number of 'K-SME' products and for its unprecedented scale."
Participating SMEs said, "Since Coupang entered Taiwan in 2022, it has been leading the way in expanding overseas export channels for SMEs, and regular K-brand events will greatly help in expanding sales channels." Coupang directly purchases products from domestic SMEs and provides them in Taiwan through rocket delivery. By supporting customs clearance, marketing, logistics, and rocket delivery for domestic SMEs all in one stop, Coupang is lowering the barriers to entry into Taiwan and increasing their export channels. Since Coupang launched the rocket direct purchase and rocket delivery services in Taiwan in the second half of 2022, 12,000 SMEs have successfully exported through Coupang.
At the end of last year, Coupang supported the entry of 20 SMEs into Taiwan through the 'Joint Entry Support Project' in collaboration with the Ministry of SMEs and Startups and the Large and Small Business, Agriculture and Fisheries Cooperation Foundation. Coupang is also expanding cooperation to support the overseas expansion of beginner exporting SMEs as a 'specialized trading company' designated by the Ministry of Trade, Industry and Energy.
A Coupang official said, "We will do our utmost to enable excellent SMEs to enter the global market without the burden of separate investments," adding, "We will support Korean 'hidden champions' to spread their wings overseas through regular K-brand promotional events."
The reason Coupang is focusing on the Taiwanese market is because 'Taiwan Rocket Delivery' is contributing to the growing sales every year. In the second quarter earnings conference call, Bom Kim, Chairman of Coupang Inc., said, "Taiwan's sales and active customer numbers grew by approximately 54% and 40% respectively compared to the previous first quarter," adding, "Compared to the second quarter of last year, Taiwan's sales growth rate was triple digits, and the growth rate for the upcoming third quarter will increase further." He also assessed, "Taiwan is showing a trend similar to the early years of retail service in Korea."
Meanwhile, it is known that the profitability of 'Momo', the number one e-commerce market in Taiwan, is shrinking. According to local reports in Taiwan on the 5th, Momo's net profit in the second quarter decreased by 15% compared to the same period last year and by 24% compared to the previous quarter. In response, the Taiwan Liberty Times mentioned, "The competitive effect of Coupang has appeared." 
wonder@fnnews.com Jeong Sang-hee Reporter