Coupang PB Product Small and Medium Manufacturers Create 2,000 Jobs

9 out of 10 Coupang Private Brand Partners Are Small and Medium Manufacturers

[Asia Economy Reporter Kim Cheol-hyun] Employment and sales of small and medium-sized manufacturers that produced and supplied Coupang's private brand (PB) products have rapidly grown.

Coupang announced on the 13th that the sales of small and medium-sized manufacturers collaborating with CPLB, a specialized subsidiary for private brands (PB), have increased nearly 500% over the three years from 2019 to last year. The number of small and medium-sized manufacturers also grew by more than 150% during the same period, resulting in a significant increase in employment.

As a result of investigating changes in employment numbers before and after supplying to Coupang among hundreds of small and medium-sized manufacturers that have collaborated with Coupang to produce PB products over the past six months to three years, their employment increased from about 14,000 to about 16,000. Considering that the average annual employment growth rate of small and medium enterprises nationwide is around 2%, it is explained that they have achieved rapid growth through cooperation with Coupang.

Since launching its first PB product in 2019, Coupang has expanded collaboration with small and medium-sized manufacturers across the country. Currently, small and medium-sized manufacturers are responsible for 80% of Coupang's PB product sales. Among the 10 partner companies of CPLB, which operates 14 brands including Gomgom and Tamsa, 9 are small and medium-sized manufacturers, accounting for about 80% of the total number of PB products and sales volume.

For example, Sweet Balance, a small manufacturer that has been producing Coupang's 'Gomgom Salad' since August 2020, recently achieved sales of 6 billion KRW, significantly increasing jobs and facility investments. Lee Woon-sung, CEO of Sweet Balance, said, "Our manufacturing plant has grown from 65 pyeong to 1,700 pyeong, and the number of employees has increased from 40 to 200."

A Coupang official said, "We operate private brand products in various categories such as food, beauty, and fashion to offer good quality products at reasonable prices," adding, "We will continue to increase opportunities for small and medium-sized manufacturers with potential to boost sales and create jobs, as well as satisfy customers."

This content was produced with the assistance of AI translation services.