Introducing Rocket Delivery Service in Taiwan
More and more small and medium-sized food manufacturers that produce and supply Coupang’s private label products are succeeding in achieving a “second leap.”
Coupang announced on Jan. 31 that three small food manufacturers in explosive growth regions, with sales that have increased from 3 to up to 29 times over the past four years, have become bestsellers in their respective fields and gained immense popularity among customers.
The commonality among these small manufacturers is that they faced bankruptcy or management crises or failed to expand their distribution channels before entering Coupang. Over the past four years of collaboration with Coupang, however, they have secured competitiveness that they did not have before, and based on this, they are increasing employment and investment.
Busan-based “Deungpureun Food,” which joined Coupang in 2019, continued its rapid growth and graduated from court receivership in 2022. The company experienced sales and profit growth due to increased deliveries of Coupang’s private label products, overcoming the bankruptcy crisis. Deungpureun Food’s revenue skyrocketed from 300 million won in its first year of joining Coupang in 2019 to 8.6 billion won last year (US$6.4 million), marking a 29-fold increase.
Instant food company Chowon Food, which is based in Gimpo, Gyeonggi Province, is drawing up a new business blueprint in the instant food industry crowded with well-known large companies through Coupang’s PB. Its revenue has skyrocketed from 1.1 billion won to 6.7 billion won over the past four years.
With Coupang’s expansion into Taiwan, small and medium-sized private label manufacturers are also increasing their overseas exports. KF Korea Nature Agricultural, a health food manufacturer with over 30 years of experience, saw its revenue triple from 700 million won in 2019 to 2.1 billion won in 2023. Its 10 products, including Vita Halo cabbage juice and pumpkin juice, are gaining popularity among local customers in Taiwan through Coupang’s Rocket Delivery service, leveraging their domestic recognition.
Coupang plans to continue discovering small manufacturers that produce high-quality food products in the future and expand support to ensure rapid growth while enhancing consumer benefits.
A Coupang representative stated, “There are still many small manufacturers nationwide with excellent quality but no secured customer channels,” adding, “We will create a win-win situation for them to overcome challenges and grow through Coupang during economic downturns.”