In light of the recent acquisition of the luxury fashion platform Farfetch by a Korean e-commerce giant, Coupang is emerging as a key player on the global stage. Here we get to know the Korean business company, as its potential begins to grow more on an international scale.
On 18 December 2023, it became official that Farfetch and Coupang had sealed the deal that would give the fashion platform $500 million worth of capital in order to avoid the risk of bankruptcy. But who or what is Coupang?
What is Coupang?
For most of us who live outside Korea and the U.S., the name Coupang may not ring any bells. However, for Koreans, Coupang is often dubbed the ‘Amazon of South Korea’ because of its position as the largest online marketplace in the country.
The business was founded in 2010 by Bom Kim, a Harvard alumnus. The company is based in Seoul, South Korea, and Seattle, the United States. Since then, Coupang has grown impressively especially during the Covid-19 pandemic when demands for online shopping peaked.
On March 11, 2021, Coupang went public with its IPO on the New York Stock Exchange.
How is Coupang different?
Coupang understands the challenges of all online shopping platforms, whether long shipping times or limited selection for faster delivery. In response, the company has developed a business model focused on creating an integrated technology and infrastructure system to enhance the customer experience.
For example, the Rocket WOW membership program that was introduced in 2019 provided customers with unlimited free shipping, Dawn Delivery, Same-Day Delivery, free returns for 30 days, and Rocket Fresh groceries. Rocket Fresh has become a leading online grocer nationwide, and Coupang Eats, the largest online food delivery service in Korea, directly contracts partners for efficient service.
What does Coupang offer?
Rocket Delivery
Rocket Delivery is a shipping service that makes 99% of orders possible to be delivered within one day. It also utilises other innovations and algorithms that allow box-less delivery and minimal packaging.
Rocket Fresh
Rocket Fresh is Korea’s largest online grocer that gets all fresh produce delivered in cold-chain logistics within one day. By eliminating all styrofoam, Coupang uses Fresh bags to deliver groceries, whereby customers can leave empty bags outside their doors to be picked up by Coupang drivers on the next delivery.
Coupang Play
Coupang Play is a streaming service that offers movies, news, original series, sports and event live-streamings.
Coupang Eats
Coupang Eats deliver food to doorsteps. Coupang Eats became more popular during the Covid-19 lockdown and was once the most downloaded application in Korea.
Quick Commerce
Quick Commerce aims to achieve higher speed than Rocket Delivery, which means deliveries could be done in less than an hour.
Coupang Pay
Coupang Pay is a fintech offering that completes the whole online shopping experience. Customers can make seamless payment for all their Coupang orders via Coupang Pay.
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In spite of her name, Paint can't really paint or even draw. Life, for her, is a journey in search of good chocolates, fries, chicken wings, and the implication behind her fat cats' split personalities.
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