Taoyuan, Taiwan - Coupang (NYSE: CPNG) has opened its second AI-enabled fulfillment center in Taoyuan City.
Why It Matters
Coupang's expansion of AI-enabled fulfillment centers in Taiwan signals the company's efforts to expand its presence in Asia and boost Taiwan's digital economy.
The Key Points
- On Nov. 2, Coupang opened its second high-tech logistics center equipped with artificial intelligence in Taoyuan City, Taiwan. The center aims to use AI and machine learning to optimize Coupang's supply chain operations.
- 70% of the wide range of products sold by Coupang in Taiwan are sourced from local SMEs. With more than 12,000 domestic SMEs exporting to Taiwan through Coupang, several SMEs, especially those in the K-beauty, food, and household goods industries, have increased sales.
- The company plans to open a third fulfillment center in Taiwan in early 2024, with each center expected to create up to 1,800 local jobs.
What They Say:
According to Coupang CEO Bom Kim, Taiwan has assets conducive to business expansion, including an educated workforce, high per capita wealth, a government ministry that prioritizes digital technology, and a population that is open to technological innovation.
Kim said these factors have motivated Coupang to invest hundreds of millions of U.S. dollars in early-stage initiatives in Taiwan this year, positioning the company as a significant source of U.S. investment.
What Comes Next?
With the new centers cementing its regional role, Coupang aims to boost Taiwan's digital economy and trade ties between Asia and the United States.
According to OOSGA, Taiwan's e-commerce transactions are expected to account for about 9.5 percent of total retail sales by 2022, growing to 11.7 percent by 2026.
At that time, the total e-commerce market size was estimated to be NT$652.4 billion, equivalent to US$23.2 billion.