Seoul, South Korea - Coupang (NYSE: CPNG) announced in its recently released "2023 Impact Report" that it has helped its small and medium-sized business (SMB) partners generate more than KRW 680 billion in sales and business revenue.
Among the numbers
1. Growth of SMB Partners on Coupang
- The number of SMB partners on Coupang with annual revenue of less than KRW 3 billion exceeded 200,000 in the first half of 2023, an increase of 1,630% from approximately 12,000 in 2015.
- In 2022, these SMB partners contributed a gross merchandise value (GMV) of KRW 9.18 trillion, a significant increase of 220% from KRW 4.18 trillion in 2019.
2. Regional Distribution and Economic Impact.
- South Korea faces challenges such as a low fertility rate and real estate bubble, partly due to the economic concentration in the Seoul metropolitan area.
- GMV from regions outside the metropolitan area accounts for 72% of Coupang's total, indicating a decentralization trend in economic activity.
3. Expansion and Export through Coupang's 3PL Service
- Coupang's 3PL service, similar to Amazon's FBA, had 12,000 users, helping SMB partners expand their market reach.
- With Coupang's expansion into Taiwan in 2022, SMB partners now account for 67% of sellers in the Taiwanese channel and exported over 180,000 items in 2023.
4. Growing PB Products and Hiring
- Sales of private brand (PB) products by SMB manufacturers on Coupang grew 29% in 2022, outpacing the national small business growth rate (12%) and Coupang's overall sales growth (26%).
- These manufacturers employed more than 20,000 people and supplied more than 14,000 product categories to Coupang, an increase of 137% yearly.
Why is this important?
Economic concentration in large companies and conglomerates remains a significant concern in South Korean society.
The Yoon administration's recent criticism of Kakao, a major platform provider, has raised awareness and concern about the concentration of power in such companies.
Coupang, another prominent South Korean company, has faced public scrutiny over its environmental, social, and governance (ESG) practices.
In response, Coupang has highlighted its social contributions alongside its small and medium-sized business (SMB) partners in its latest impact report, positioning itself as a responsible "platform."
