The Intrinsic Value Podcast - The Investor’s Podcast Network
TIVP002: Coupang (CPNG): The Amazon of South Korea w/ Shawn O’Malley
Jan 12, 2025
Discover the captivating rise of Coupang, known as the 'Amazon of South Korea.' Learn about its remarkable growth, with nearly half the population as active users. The discussion highlights Bom Kim's visionary leadership and innovative logistics, including lightning-fast deliveries. Dive into the company’s luxury e-commerce shift and challenges in Taiwan and Japan. Explore how its cash flow supports valuation and the competition from players like Temu and Alibaba. Will this transformative platform make it to an investment portfolio?
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Quick takeaways
- Coupang's exceptional growth is attributed to its innovative logistics model, enabling one-day and dawn deliveries across South Korea.
- With a substantial active customer base and successful RocketWow memberships, Coupang prioritizes enhancing customer satisfaction and loyalty.
Deep dives
Coupang's Rapid Growth and Delivery Model
Coupang has positioned itself as a dominant player in South Korea’s e-commerce market by establishing fulfillment centers close to major population hubs, allowing for one-day and dawn deliveries. With 21 million active customers, Coupang's reach has grown substantially, with a significant portion of the population subscribed to its RocketWow service. This rapid growth has been reflected in its impressive annual revenue, which has risen to approximately $27 billion since its IPO, despite initial stock performance not meeting expectations. The company’s unique delivery model is set against the backdrop of high e-commerce adoption in South Korea, where online shopping constitutes about half of retail sales.
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