When Min-young Son created VM Company over 20 years ago, he started off in the apparel industry as an original equipment manufacturer (OEM). As an OEM, VM Company mass produced garments at its factory on behalf of other fashion brands and labels. Despite Min-young’s efforts, his business always seemed to be at a standstill due to a stagnant business model and limitations in creating new sales channels.
Things started looking up once his daughter, who majored in design, joined the company, and VM Company then launched on Coupang three years ago. After just one year, VM Company’s sales increased threefold, and business has never been better.
“Since joining Coupang’s Rocket Delivery, our business model shifted,” said Min-young. “After years of stagnant sales as an OEM making apparel for other fashion companies, we now have our own brand and are focused entirely on Rocket Delivery. I’m so happy.”
These days, VM Company seems like an entirely new business. “Since joining Coupang and pivoting our business model online, we have been able to sell 700 to 800 different design products,” said Min-young. “And after 20 years of being a sole proprietorship, VM Company is now a corporation.” The company’s organization has also changed drastically. “Our office that had eked by with five employees has now grown to include an operations team, logistics team, design team, and more, with over 30 employees divided into different departments.”
There have been many such success stories lately on Coupang, as small and medium-sized enterprises (SMEs) that had been struggling due to COVID-19 and the economic downturn are finding new sales channels as they convert their brick-and-mortar business models to e-commerce. “SMEs that lack the capacity for digital transformation can quickly become competitive online and compete with anyone through Coupang, which has the best delivery, logistics, and big data systems,” said Hyung-gu Kang, a business administration professor at Hanyang University.
Coupang offers a wide range of tools for SMEs and other merchants, including online onboarding and support in everything from inventory and fulfillment management to marketing and advertising. The company also offers a direct purchase model, which allows vendors to sell their products in bulk to Coupang and thus focus solely on product development and production.
Daejun Park, Coupang’s Representative Director of Business Development, said, “Coupang’s retail business has been designed with SMEs in mind, and we are committed to helping SMEs thrive. As SMEs on Coupang grow and improve their businesses, customers will have access to an even wider and better selection of products, benefiting everyone within the Coupang ecosystem.”
