Reported 12 months ago
CoolPeng, a South Korean Amazon-like platform, has rapidly grown and attracted attention in the e-commerce market in Taiwan over the past year. At the PChome shareholder meeting today, concerns were raised about how platforms like CoolPeng, with experiences battling against Shopee, could overcome challenges. PChome's Chairman Chen Hongzhi mentioned that both Shopee and CoolPeng's impact on local platforms is significant due to their 'negative gross margin' competitive strategy. Chen believes this poses a challenge not only to individual companies like PChome but to all Taiwanese businesses. Despite momo's dominant position in the online retail market and decent profits, Chen also doubts momo's ability to counter CoolPeng's strategy. He notes that despite momo's sustained revenue growth and good profit performance, the significant recent drop in their stock price indicates the substantial impact of competition from CoolPeng.
Source: YAHOO