Korean SMEs enjoy strong sales in Taiwan via Coupang

Coupang Inc.’s headquarters in Seoul. [Photo by Park Hyung-ki]

South Korean small and medium-sized enterprises (SMEs) are making a stride in Taiwan, thanks to e-commerce platform Coupang Inc.’s fast delivery services that target local consumers.

According to sources on Tuesday, Coupang has been selling products from Korean SMEs in Taiwan through its Rocket Jikgu (global sourcing) and Rocket Delivery services.

Rocket Jikgu refers to a service where Taiwanese consumers can order products directly from Korea, and the products ordered are delivered by air.

Taiwanese consumers can receive their Rocket Jikgu items within 1-2 days for orders over 690 New Taiwan dollars (TWD, $24).

Rocket Delivery is a system where Korean companies deliver their products to Coupang’s logistics centers in Taiwan, and these items are subsequently delivered to local customers the following day.

In Taiwan, Rocket Delivery offers free shipping for orders over 490 TWD. Coupang’s rapid and efficient delivery model, mirroring the Korean market, has garnered significant favor from Taiwanese consumers.

“Coupang is conducting Rocket Jikgu and Rocket Delivery across Taiwan, selling millions of products through these services,” said an industry insider. “This year, Korean SME products are taking their first significant steps into Taiwan through Coupang.”

Historically, Korean SMEs faced numerous challenges when expanding into Taiwan, such as navigating various local permits and regulations, even after setting up shops on local online marketplaces.

Coupang has stepped in to alleviate these obstacles by providing comprehensive support to Korean SMEs looking to expand into Taiwan, including customs clearance, shipping, and marketing.

One Korean SME that has benefited greatly from this support is Teazen, a seller of functional teas like Kombucha.

Teazen began sales through Coupang in 2019 when its annual revenue was 5 billion won ($3.75 million). However, by last year, revenue had skyrocketed to four times that amount.

“Since Coupang’s entry into Taiwan, many small manufacturers from Korea are going global,” said Teazen CEO Kim Byung-hee. “We plan to invest 1 billion won over the next three years in export workforce and marketing.”

Coupang has found a strong response among Taiwan’s younger demographic.

As of the latest data, the Coupang app ranked as the top shopping app in Taiwan. Coupang app users in Taiwan are mainly aged 25~34 (24 percent) and 35~44 (23.8 percent), with those in their 20s to 40s making up nearly half of the user base.

Since Coupang’s expansion into Taiwan, Korean SMEs’ exports to the market have steadily increased.

The export value of Korean SMEs to Taiwan was $2.62 billion in 2020, but it reached $3.5 billion last year, up around 33 percent. The range of products sold in Taiwan through Coupang has also diversified.

Bangagan Cosmetics, a Korean SME known for its mask packs, saw its export share reach 35 percent of its annual revenue of 13.5 billion won last year.

“Our sales through Taiwan’s Rocket Delivery this year have increased by 50 percent compared to last year,” said Bangagan Cosmetics CEO Im Young-sik. “We recently hired 12 new employees, including Taiwan export team members, and are developing products that will appeal to Taiwanese consumers.”

Companies like Dangolunni that sell women’s shoes and Naeiae that manufactures rice snacks have also experienced significant sales growth through the Coupang platform.