Coupang investor relations material

The ecommerce giant of South Korea

Coupang offers a suite of solutions across the complete value chain of online shopping. The company is mostly known for their large and sophisticated logistics network, which enables exceedingly fast shipping speeds on millions of items in almost every category to be delivered within hours. In addition to the unmatched delivery times, they also provide vast selection and cheap prices, which is why Coupang can be considered the Amazon of South Korea.

Unmatched delivery times

Coupang has invested heavily in logistics infrastructure for over a decade. As of February, 2023, the company had built and designed over 100 fulfillment centers, covering north of 40 million square feet. As a result, over 70% of the Korean population now lives within 7 miles of a Coupang logistic center – which enables among the fastest delivery times on average worldwide. In addition to the extensive physical infrastructure, a vital part for empowering the fast deliveries is the technology and software. For instance, Coupang uses AI and machine learning to predict demand spikes and for optimizing routes for their delivery staff, and to allocate inventory more efficiently.

Challenging to be different within retail

One potential challenge for Coupang is competition from other ecommerce companies, both in South Korea and globally. The company competes with established players such as Amazon, Alibaba, and Additionally, the ecommerce market is becoming increasingly crowded, and there is a risk that Coupang may struggle to differentiate itself from competitors. Their objective for long-term differentiation is however very clear, Coupang is betting heavily on reliable and fast deliveries, vast selection, and cheap prices.

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