In this company episode on Coupang, Speedwell Research draws on their extensive research report to cover everything from Founder Bom Kim's early foray into commerce with a Groupon-like business to an epic restructuring of the company just weeks away from IPOing that left them on the path to become the leading South Korean ecommerce business. Learn about how the South Korean competitve enviroment developed differently, as well as how Coupang managed to dominant after a capital-intensive pivot. We hope you enjoy!   

Company Description: Dominant South Korean ecommerce provider with fully integrated logistics operation.

Purchase the full Coupang Report here. 

More details on our Coupang Report here. 

Purchase a Speedwell Membership to gain access to all Reports here. 

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Show Notes

Section 1: History and Background

(0:00) Intro

(1:55) Coupang Business Overview

(2:56) Start History 

(6:13) Groupon Business Model, Differing Value Props 

(17:10) Pulling the IPO and Pivoting

(30:32) - Second Attempt at an IPO

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Section 2: TAM and Competition

(31:44) TAM and Korean Retail Market Overview

(39:13) Market Share and GMV Estimates

(42:52) Competition, Consumer Preferences Served

(47:47) Flywheel 

(56:37) Coupang Fresh Grocery 

(59:30) Spend per Buyer 

(1:01:18) Competitive Enviroment, Naver

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Section 3: International and Other Bets

(1:27:17) Other Bets 

(1:28:31) Coupang Play

(1:31:56) Coupang Eats

(1:39:10) Coupang Pay

(1:42:25) International, Japan, Taiwan

(1:48:42) Farfetch

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Section 4: Financials, Valuation, Risks 

(1:53:04) Financial Metrics

(2:00:00) Coupang Steady State Margins 

(2:04:03) Reverse DCF

(2:06:20) Bear Case, Bull Case, Risks

(2:13:58) Conclusion

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Purchase the full Coupang Report here. 

More details on our Coupang Report here. 

Purchase a Speedwell Membership to gain access to all Reports here.  

Articles Mentioned

Speedwell’s Memo: Metaphor Malware: The Clumsy Thinking That Is Crippling Your Business Understanding

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Twitter: @Speedwell_LLC 

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Email us at info@speedwellresearch.com for any questions, comments, or feedback

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Disclaimer

Nothing in this podcast is investment advice nor should be construed as such. At the time of publishing, one or more contributors to the podcast had a position in Coupang. Furthermore, accounts one or more contributors advise on may also have a position in Coupang. This may change without notice. Please see our full disclaimers here:  https://speedwellresearch.com/disclaimer/