-The report delves into socioeconomic values of Mini Businesses working with Coupang whose annual revenues are KRW 3B and below
-Coupang joined hands with KPMG Samjong Accounting Corp. from early this year to publish nation's first report on the growth of a company's partner businesses
-The report is notable for several interesting statistics including: Regional Mini Businesses grow three times faster than the counterparts in Seoul; In 2018, Mini Businesses' sales generated on Coupang eclipsed an Avengers movie's worldwide revenue
-The report highlights various synergy created by Coupang and Mini Businesses in job creation and cost reduction
SEOUL, South Korea, Sept. 20, 2019 /PRNewswire/ -- On Thursday, Coupang announced the release of "2019 Coupang Mini Business Impact Report – Small Giants working with Coupang" highlighting the socioeconomic correlation between Coupang, its business partners and local communities. While many companies are realizing the importance of win-win business partnerships, Coupang is first in Korea to conduct in-depth analysis on the mutual impacts of the company and its business partners. The report is significant in part because it includes a systemic analysis on businesses that make less than KRW 3B a year and are smaller than SMEs.
The research subjects which Coupang referred to as "Mini Businesses" in the report are small companies that offer their products on Coupang with annual revenue of KRW 3B and below. "2019 Coupang Mini Business Impact Report" studied and analyzed Mini Businesses' current status and creation of socioeconomic value. It also shows various data on growth, contribution to local economy, job creation and other synergistic effect brought by Coupang and Mini Businesses.
From early this year, Coupang researched thriving Mini Businesses on its platform and worked with experts at KPMG Samjong Accounting Corp. to study various industry data and analyze success cases of Mini Businesses selling in Coupang's stores.
According to the report, more than 10K Mini Businesses onboard the ecommerce platform every year, and now total in excess of 50K. The report revealed that growth rate of Mini Businesses selling on Coupang recorded 81%, far surpassing Coupang and the Korean ecommerce market's growth which stand at 61% and 18% respectively. In 2018 alone, Mini Businesses on Coupang exceeded KRW 2.65T in sales, far outpacing the sales of a worldwide blockbuster "Avengers: Infinity War" that made USD 2B.
The report also addresses Small Businesses' contribution in boosting local economy. 60% of Mini Businesses on Coupang are based in regional areas and in general grew three times faster than the counterparts in Seoul. Indeed, a Mini Business located in Hoengseong Gangwon-do expanded 30 times faster than the counterparts in Seoul while Mini Businesses based in Sejong offered three times more selection (number of products) than the national average. Such healthy growth of Mini Businesses is estimated to drive job creation. Around 32K 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.
Fast growing Mini Businesses on Coupang attributed their success to fair and convenient platform. On Coupang, even Mini Businesses that are lesser-known than large conglomerates can win customers with their competency in offering better prices and services. The report also found that Coupang's innovative services and a support system that make it easy for customers to shop also empowered the Mini Businesses to expand and create a win-win environment for all.
The report also features the success stories of Mini Business owners who thrive by selling on Coupang's Marketplace or via Rocket Delivery. They include people like Lim Jung-ho, a young CEO of eChungchun that sells products from his father's factory in online stores; Park Jong-gwon, CEO of Hongsungpulmu, an agricultural business corporation which sold rice cakes using rice enough to feed 4.4MM people in 2018 alone; Park Eun-ah, a working-mom/entrepreneur and a CEO of Moms Corporation, a baby food manufacturer launched for working mothers like herself; Park Suk-jong, CEO of Miko INT that manufactures trendy hobby products; and Noh Dong-sik, CEO of Namwon Wooden Craft Company, a dedicated manufacturer of wooden utensils in Namwon Jellolabuk-do – all who are our neighbors growing small but healthy companies.
"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." Kim Jung-nam, Sustainability Practice Lead in KPMG Strategy Consulting Group commented. He added, "We at KPMG hope Coupang's pioneering efforts and conviction promote the notion of societal value and impact creation in other companies."
You can download "2019 Coupang Mini Business Impact Report" from Coupang Newsroom website at https://news.coupang.com
Download Link: https://news.coupang.com/wp-content/uploads/2019/09/2019-Coupang-Mini-Business-Impact-Report.pdf
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