“Mini” businesses selling products on Coupang have seen their businesses grow by 81 percent on average, with combined sales exceeding 2.65 trillion won ($2.22 billion) in 2018 alone, a report released by Coupang showed.
These and other findings were included in the “2019 Coupang Mini Business Impact Report -- Small Giants Working With Coupang,” highlighting the socioeconomic correlation between Coupang, its business partners and local communities.
It is the first such in-depth analysis of the mutual impacts of the company and its business partners, the company noted, adding that the report includes a systemic analysis of businesses that make less than 3 billion won a year and are smaller than small and medium-sized enterprises. “Mini businesses” cited in the report refers to small companies offering products on Coupang with annual revenue of 3 billion won and below.
“The report shows various data on growth, contribution to the local economy, job creation and other synergistic effects brought by Coupang and mini businesses,” Coupang said. The research began early this year, working with KPMG Samjong Accounting.
According to the report, more than 10,000 mini businesses come aboard the e-commerce platform every year, now totaling over 50,000.
The report also said that 60 percent of mini businesses on Coupang are based in regional areas and on average grew three times faster than their counterparts in Seoul. For instance, a mini business located in Hoengseong, Gangwon Province, expanded 30 times faster than its surveyed counterparts in Seoul.
Around 32,000 jobs were created by mini businesses working with Coupang last year, a figure that exceeds the total jobs created by Korea’s top 10 conglomerates in the second half of last year, the firm said.
Fast-growing mini businesses on Coupang attributed their success to a fair and convenient platform, according to the report. On Coupang, even mini businesses with less publicity can win customers with competency in offering better prices and services.
“A virtuous cycle is created from Coupang’s sales platform providing optimum customer experience, which drives business growth for partners, which in turn enables Coupang to grow into a more inclusive and innovative company,” according to Kim Jung-nam, who leads sustainability practice at KPMG Strategy Consulting Group.
He added, “We at KPMG hope Coupang’s pioneering efforts and conviction promote the notion of societal value and impact creation in other companies.” (firstname.lastname@example.org)