Coupang, which is listed on the New York Stock Exchange (NYSE) in the United States, set an offering price per share of 35 dollars, and the company value was estimated at 72 trillion won. On the 11th, the final public offering price was announced at Coupang headquarters in Songpa-gu, Seoul. News 1
Coupang’s listing on the New York Stock Exchange on the 11th (local time) is predicting a major upheaval in the domestic distribution industry beyond just Coupang’s’jackpot’. Coupang is expected to carry out more aggressive marketing with the 5 trillion won real shot prepared through the public offering (IPO).
In the market, there is already an interpretation that “It is not unusual for Naver to move in earnest.” From traditional retailers to information technology (IT) companies, it is a sign that an all-time investment war is unfolding, raising the plate of shopping and delivery with weapons not found in Coupang.
’72 trillion of corporate value’ to the Korean e-commerce myth
Coupang finalized the offer price per share at $35. This is higher than the initial public offering price ($32-34). It is interpreted that it gained confidence in the overvaluation of investors at the local road show (investment briefing). Even if it is listed at the public offering price alone, Coupang’s corporate value soared to $63 billion (about 71 trillion won).
This is the largest public offering since Alibaba among Asian companies listed on the US stock market. Even compared to domestic listed companies, it ranks third after Samsung Electronics (approximately 489 trillion won) and SK Hynix (100 trillion won). With 130 million shares, an increase of 10 million shares from the plan, Coupang’s new fund will reach $4.55 billion (approximately 5.2 trillion won).
Coupang founder Beom-seok Kim, Chairman of the Board Coupang offer
Rocket delivery areas and products increase
Inside a distribution center in Coupang. Products that are about to start shipping are piled up. Coupang offer
Coupang is expected to use more than 5 trillion won of live ammunition for a tighter distribution network. In the industry, 5 trillion won is regarded as a fund to build 15 or more A-class distribution centers with a size of about 100,000 square meters (30,000 pyeong) or more in a densely populated place.
Coupang, which currently has 170 distribution centers nationwide and a solid metropolitan rocket delivery network (next day delivery), plans to automate existing centers and build additional regional centers in the future. The goal is to include all citizens within a 10km radius of the Coupang Distribution Center by 2025.
This means that when a distribution center is added, the items that are directly purchased and stored are more diverse. That is, it will be possible to increase the quantity of rocket ships. Coupang is strong in inexpensive mass-produced industrial products, but is relatively inferior in fashion, beauty, and expensive home appliances that have a lot of taste. 2030 generations who value emotional consumption do more shopping on Naver than Coupang.
Ranking of e-commerce payments for January this year by age group. Reporter Moon Joong Kim
Companies seeking’Nothing in Coupang’
Although the platform dominance and product diversity are overwhelming, it is the background that CJ and Shinsegae recently joined as Naver’s allies, whose weaknesses include delivery and fresh food. CJ Group has CJ Logistics, the number one delivery service provider, and Shinsegae Group’s SSG.com is an online mall that has succeeded in a specialized strategy for shopping. Following CJ, which formed a blood alliance by exchanging stocks worth 600 billion won with Naver, Shinsegae is also expected to exchange shares soon.
E-commerce usage in January this year (data = Wise App). Reporter Moon Joong Kim
Industry analysts say that eBay Korea is emerging as an attractive sale due to a different profit structure from Coupang. EBay is the only Korean e-commerce company to record a surplus, with an open market model that earns order brokerage fees and advertising fees. There are also 3 million loyal paid members. Initially, it was criticized that the selling price of 5 trillion won was “too expensive”, but it is known that about 10 places including Kakao, Shinsegae, and Lotte have received investment prospects.
An industry insider said, “Coupang basically sells goods cheaply and builds a distribution center on the bare ground, and the direct purchase inventory management costs are large, resulting in a deficit.” I can narrow it down,” he explained.
“Let’s stick together” even in hypermarkets
Hypermarket companies are looking to become a logistics hub for existing offline stores. After the acquisition of the shopping mall Jet.com in 2016, Wal-Mart in the US is regarded as a successful case of online and offline synergy such as store pickup and drive-through. Amazon, which Coupang benchmarks, is also investing steadily in offline stores recently, but Coupang is still relying only on online channels.
Experts believe that the’Allied Forces’ strategy, which combines the strengths of each company, will continue while increasing investments in product diversification and enhancing the efficiency of logistics based on artificial intelligence (AI). Lee Ji-young, a researcher at NH Investment & Securities, predicted, “It will be difficult for retailers to survive in the future due to the Coupang’s air raid,” and “It will also result in the incorporation of other e-commerce companies that account for 45% of the market into large platforms.
Maeng Ha-kyung reporter [email protected]
News directly edited by the Hankook Ilbo can also be viewed on Naver.
