Coupang said on March 30 that customers who bought products on its platform received rebates worth a total of 22.75 billion won through the government’s “top-efficiency appliance rebate programme” that ran from July to December last year. Coupang estimated the figure at about 20 percent of total rebates across online distribution channels over the same period. It was the largest amount for a single distributor.

The top-efficiency appliance rebate programme refunds 10 percent of the purchase price when consumers buy energy-efficient appliances, capped at 300,000 won per person. The government implemented it to simultaneously promote a recovery in the economy, cut national electricity use and strengthen the competitiveness of the domestic home appliance industry.

According to the Ministry of Climate, Energy and Environment, appliances with a grade 1 energy consumption efficiency rating can reduce power use by about 30 to 40 percent compared with grade 5 models. For products with high power consumption such as air conditioners, annual electricity bills can differ by up to more than 25,000 won depending on the efficiency grade. Coupang said it has focused on raising awareness of the savings effect and discount benefits of grade 1 efficient appliances to actively inform customers of these advantages.

Coupang said it used key marketing slots within its app and social media channels, and differentiated its offering by linking its logistics service, Rocket Installation, to boost the policy’s effectiveness. The company said it supported customers in buying high-efficiency appliances more easily and economically through dedicated promotions tied to its “Kugase” (Coupang Home Appliances and Digital Sale) and card company discount benefits.

Such support appears to have led to expanded sales channels for small and medium-sized companies that produce grade 1 efficient appliances. During the programme period, sales in the small-brand home appliance category grew by at least triple digits from a year earlier.

Harold Rogers (해롤드 로저스), Coupang’s acting chief executive, said Coupang’s innovative logistics system and marketing capabilities combined with government policy to create meaningful synergy. He said the company will continue to ease customers’ financial burden through wider adoption of high-efficiency appliances and build a distribution ecosystem in which competitive small and medium-sized companies can grow with Coupang.