Due to changes in consumer habits, e-commerce has become a highly competitive sector where many companies are battling to become the market leader. momo sells quality products and engages in responsible product disclosure with the goal of extending our core business and working with consumers to develop a sustainable consumption framework. Products sold by momo encompass everything including food, clothing, accommodation, travel, education and recreation. In 2022, the number of products listed for sale exceeded 4.13 million. We also sold more than 100 million pieces of products during the same year.
momo is committed to stable, high-quality products and services. Our safety web of three main quality inspections keeps non-conforming products from reaching consumer hands. We also implemented controls to keep the abnormal quality return rate under 1%. Thanks to the vigilance of our employees, the rate was below the target value in 2022. If any consumer complaints regarding product quality are received, the product is recovered for inspection and the stock are also examined as well. We responded actively to consumer complaints and enforced strict product quality standards that kept our annual customer complaints over quality anomalies below 0.003% for the year.
momo places great importance on product safety as a principle of sustainable consumption. We conduct safety inspections for all product types and take responsibility for ensuring consumer peace of mind. Suppliers go through a careful screening process and are contractually required to supply compliant and properly labeled products. momo has also put into place other measures, such as mystery shopper and audits. For product quality assurance, momo set up the “Quality Management Department” and is continuing to invest in quality, ingredient, source, and Chinese labeling testing to ensure compliance. On the logistics side, momo turned quality management into a part of the distribution center’s DNA. When the ISO 9001 quality management system was introduced at the North Distribution Center at the end of 2019, a task force headed by top executives was formed to realize the integration of all logistics operations and meet the highest quality standards. In 2020, momo's Northern Distribution Center became the first e-commerce distribution site in Taiwan to be certified by SGS ISO 9001 Quality Management System. In 2021 and 2022, the Center was accredited by SGS. Returns and transportation will be included in the scope of external audits in 2023. In 2022, a total of 973 employees had completed online ISO training, reaching a 60% coverage rate of employees. From supervisors to every employee, everyone has to implement ISO education and training, to promote the overall consistency of momo's logistics and warehousing system, and to lay a solid foundation for the sustainable development of the organization.
Safeguarding Food Safety
momo is dedicated to the food safety of consumers and regularly conducts tests on a wide range of items, including bacteria count, salmonella, staphylococcus aureus, ractopamine, etc. in the own laboratory. In 2022, we successfully developed the "Borax Residue Test" to further enhance food safety protection, with a passing rate of 97.87% in 2022, and we will continue to keep an eye out for our consumers.
Three Main Types of Product Inspections
Our quality commitment to consumers is one of momo’s most important business topics. Product compliance and labeling is reviewed and verified through a safety net based on three types of inspections - corrective, preventive, and periodic - to foster a positive experience for consumers.
Anomaly Management and Prevention Mechanism
If a non-compliant product is already listed, then momo immediately activates the quality control mechanism. These controls range from additional inspections on incoming products through supplier management to the inspection and delisting of all products. This ensures that abnormal products are not shipped to consumers and prevents a repeat of the same customer complaint.
momo believes that the integrity of product labeling depends on proper management at the source. Suppliers are therefore contractually required to ensure that all product labeling complies with the law. In 2022, momo audited and delisted 2,160 products. By providing suppliers with assistance on full and transparent disclosure of product information, 511 products have since been relisted for sale.
Food Traceability and Tracking
Food safety is of great importance so food traceability management was strengthened by momo for consumer peace of mind. The Ministry of Health and Welfare bulletins on food safety and hygiene quality require a tracing and tracking system to be set up for products, raw materials, and final products produced by food companies above a certain size based on the industry model. Information on packaged milk powder, milk formula and seafood are electronically uploaded every month (supplier, expiry date, shipping date, etc.). If there is a food safety incident, the system allows for the effective tracing of the product source and destination.
