Author: Tronserve admin
Friday 30th July 2021 05:55 PM
Coupang Ascends to Top In Korean E-Commerce Market Amid Virus Outbreak
Korean e-commerce giant Coupang has become one of the biggest winners in the virus-battered environment, helped by its overnight delivery.
Coupang dominated 24.6 percent share local online retail market, based on transaction volume from Jan 1 to March 7 this year, up 18.1 percent from the same period last year, according to data compiled by market researcher Nielson Korea. Gmarket that led the market last year with 19.1 percent share slipped to No. 2 despite a share of 19.7 percent by the first week of March.
Coupang outperformed eBay Korea, local unit of U.S. e-commerce giant eBay that owns Gmarket and Auction, in terms of transaction value.
Retail industry tracker WiseApp reported transactions made on Coupang amounted to 1.6 trillion won ($1.3 billion) in February while eBay Korea’s total transition amount came to 1.4 trillion won. The agency already had speculated Coupang had outpaced last year by recording 17.1 trillion won in 2019 while estimating 17 trillion won for eBay Korea.
Coupang has widened its lead over eBay Korea and others amid COVID-19 outbreak. It is reported that daily orders at Coupang have averaged 3 million since Korea began reporting coronavirus infections in late January, which is more than doubled the volume before the virus outbreak.
Experts attribute Coupang’s jump to its next-day Rocket Delivery service. Also, it is the only online retailer in the country that provides nationwide early morning service, which delivers fresh groceries at a door step by the break of dawn, as well as does delivery even on Sundays.
Coupang is expected to release its fiscal 2019 earnings this week, market watchers estimate the company to have recorded 7 trillion won in revenue, given its past revenue growth patterns. In 2018, the company reported an operating loss of 1.1 trillion won on revenue of 4.4 trillion won.
The operating loss, however, is expected to stretch above 1.5 trillion won this year due to massive investment to expand its delivery and supply infrastructure.
The company plans to maintain its aggressive expansion plan as it still has a room for investment, according to a Coupang official.
Meanwhile, Tmon Inc. reported an operating income of 160 million won for the month of March. It is the first among Korean e-commerce service providers to report an operating profit on a monthly basis.
11st Street also managed to turn an operating profit of 1.4 billion won for fiscal 2019, on its efforts to streamline loss-making businesses.