Kuobrothers banking on nimbleness

By Ted Chen  /  Staff reporter

Thu, Aug 02, 2018 - Page 12

E-commerce operator Kuobrothers Corp (創業家兄弟) yesterday said its revenue and profitability would continue to grow faster than its larger peers on the back of its nimble operations.

The company has reported that net income in the first half of this year rose 42.3 percent annually to NT$2.45 billion (US$80.02 million). Earnings per share were NT$1.58.

Gross margin in the first half stood at 15.2 percent, surpassing Momo.com Inc’s (富邦媒) 10.45 percent during the period and PChome Online Inc’s (網路家庭) 13.31 percent in the first quarter.

The company said its shopping platform is backed by its proprietary marketing and inventory selection systems that cut costs and bring products to consumers at lower prices.

While PChome has 1.5 million stock-keeping units (SKUs) listed for sale, which is 207 times higher than Kuobrothers’ 7,301, PChome’s net income is only 6.7 times that of Kuobrothers’, cofounder and vice president Cindy Wu (吳佩雯) said.

The company generates NT$55,989 per SKU, compared with PChome’s NT$1,736 and Momo.com’s NT$5,729, Wu said, citing company estimates.

Kuobrothers would continue to leverage its higher operating efficiency to forge strategic alliances with other small e-commerce platforms for greater collective bargaining power with brands and suppliers, Wu said.

Kuobrothers’ three online shopping platforms for household goods, consumer electronics and fresh foods, as well as a comprehensive business-to-business-to-consumer platform, connects businesses and customers.

As of the end of the second quarter, revenue contribution from its partnerships had risen 500 percent annually to represent 17 percent of its top line, it said.