Coupang opens second logistics center in Taiwan

Coupang's second fulfillment center in Taoyuan, Taiwan [COUPANG]

Coupang opened its second logistics center in Taiwan on Thursday as the New York-listed e-commerce operator tries to bolster its presence in the East Asian country often known to be similar to Korea.

Located in the northwestern city of Taoyuan, the newly inaugurated Fulfillment Center (FC) features AI and machine learning technologies, establishing itself as a smart logistics center.

"We anticipate the second Taiwan FC will help drive the sales of more than 12,000 domestic small and medium-sized businesses that have partnered with Coupang in Taiwan," the company said Friday, adding that 70 percent of products available in Taiwan through Coupang are supplied by Korean small and medium-sized enterprises.

Coupang entered the Taiwanese market in October last year, introducing its overnight shipping Rocket Delivery and cross-border Rocket Jikgu services.

Jikgu is a Korean word that stands for direct overseas purchase.

The Coupang mobile application ranked as the top shopping app in Taiwan in terms of the number of downloads in this year's second quarter, which the company attributed to its diverse product selection, competitive pricing and swift delivery services.

Coupang's decision to select Taiwan as its inaugural overseas expansion destination and its subsequent efforts can be attributed to the Taiwanese consumer market's similarity to that of Korea.

Taiwan's tech-savvy consumers and high population density in big cities, much like Korea, create a favorable environment for the e-commerce giant's operations.

"In Taiwan, apartment-style living is prevalent, and the practice of doorstep parcel delivery is commonplace," an industry insider said.

"Conversely, in Japan, where Coupang previously experimented with beta services but eventually discontinued, the cultural norm of recipients personally accepting deliveries would have presented limitations for Coupang's Rocket Delivery service."

Coupang plans to launch its third logistics facility in Taiwan during the first half of the coming year.

"Coupang's success in the Taiwanese market transcends individual businesses, as it promotes increased cross-border trade and strengthens ties with neighboring Asian countries," Coupang founder and CEO Bom Kim said at the opening ceremony on Thursday.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]