E-commerce

Coupang: The Best E-Commerce Play Of South Korea – Seeking Alpha

Summary

Sundry Pictures/iStock Editorial by way of Getty Pictures

Coupang (CPNG) is The Most very important retail e-commerce agency in South Korea, with a market share Of two0.01% in 2021. Aside from that, based mostly on its prospectus, The agency ventured into completely different income parts Similar to third-halfy service provider providers, the place The agency costs fees, promoting, and supply costs from its service providers. The agency has furtherly been involved in completely …….

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Sundry Pictures/iStock Editorial by way of Getty Pictures

Coupang (CPNG) is The Most very important retail e-commerce agency in South Korea, with a market share Of two0.01% in 2021. Aside from that, based mostly on its prospectus, The agency ventured into completely different income parts Similar to third-halfy service provider providers, the place The agency costs fees, promoting, and supply costs from its service providers. The agency has furtherly been involved in completely different e-commerce companies Similar to video streaming providers, meals supply, and extra.

On this evaluation of Coupang, we analyzed its e-commerce enterprise and anticipate its progress to be pushed by elevated spending by buyers and proceedd consumer progress. Furtherextra, we examined its benefit When it Includes having An limitless consumer base and extreme fee assembleion for third-halfy service providers, which we think about might proceed to Finish in The enlargement of its third-halfy service provider providers half income. Lastly, we analyzed its revenueability enchancment, which has improved since 2018, however we anticipate it To primarytain unrevenueable Finally As a Outcome of it aggressively increases its logistics internetwork. Using a P/S comparable valuation, we derived a worth goal for The agency based mostly on the enterprise common ratio Of two.24x.

Coupang

E-commerce Revenue Growth Driven by Increased Spending and User Growth

In 2021, the South Korean retail e-commerce market measurement was $92 bln Based on ecommerceDB. Coupang hAs a Outcome of the very biggest market share Of two0.01% in 2021 based mostly on transaction quantity.

Company Annual Reviews, ecommerceDB, Khaveen Investments

In South Korea, the share of e-commerce gross sales of complete retail gross sales has elevated to 25.8% in 2021 from 21.5% in 2019. Based on Statista, South Korea’s e-commerce peinternetration price by buyers has been developing from 2017 at 61% to 77% in 2022. Also, the peinternetration price Is predicted To Obtain 83% by 2025. As in contrast, South Korea’s internet peinternetration price elevated from 78% in 2011 to 92% in 2021.

Based on OpenSurvey, The extremeest elements Korean consumers choose To buy on-line are As a Outcome of of its good worth, the comfort of supply, and useful cost with 44.5%, 33.1%, and 24.7%, respectively. In a survey of buyer satisfaction of e-commerce platforms by the Korean Storeper Company, Coupang beat out its rivals with The very biggest rating Of three.85 out of 5 with an environment nice supply service the placeas completely different rivals ratingd under 3.8.

In time durations of the breadth of its logistics internetwork, in 2020, Coupang had 200 fulfilment centres with roughly 20 mln sq. ft in Korea. Whereas Naver & CJ Logistics solely had 2 fulfilment centres with An complete of 57,574 sq. ft. We think about that with its superior logistics capabilities, Coupang might primarytain its benefit over rivals and primarytain its extreme buyer satisfaction and appeal to extra buyers. Furtherextra, we think about That is further supported with a assembleive NPS rating of 76 for The agency.</…….

Source: https://seekingalpha.com/article/4494045-coupang-the-best-e-commerce-play-of-south-korea

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