This article was published on February 14, 2021 at 12:53 The Bell Paid PageIt is an article expressed in
‘Have you ever lived without Coupang?’ Coupang Chairman Kim Beom-seok, who revealed by listing Coupang’s parent company’Coupang Inc’ in the USPhoto)’S aspiration is to create a’coupang world’. The goal is to create a daily life familiar to Coupang so that customers cannot think of the past when they lived without Coupang.
What makes customers have everything through Coupang is the confidence that they will go beyond the number of items they sell to overcome the regional and price limitations of existing offline retailers. It means that it will support all the values that customers want based on’rationality’ through’infrastructure’. However, Chairman Kim also clearly conveyed the limitations of Coupang.
Chairman Kim, who heads the board of directors of Coupang, a business company and CEO of Coupang Inc, which is subject to listing, released a letter containing his aspirations and goals in a stock report filed with the US Securities and Exchange Commission on the 12th of this month local time. ‘We want our customers to have it all’ Coupang took the subject of wanting customers to have it all. Considering that Kim has been avoiding media contact as well as external activities so far, this is the first official position that he put forward before listing.
He introduced Coupang as Korea’s largest e-commerce. It also revealed that Coupang was born by focusing on not giving up all the’reasonable choices’ customers want with the aim of’surprisingly convenient service, low price, and wide choice’. This means that it wanted to break through the fact that the distribution industry was formed in a way that conventionally traded values that customers want. Coupang expanded its business by building infrastructure for everything customers wanted.
In particular, he explained that the quality of life of customers has improved by going beyond the simple purchase desire through the rocket delivery service that allows you to receive the desired product early the next morning. The rocket delivery service was introduced by recalling that it was a highly sophisticated technology to build a system that goes one step further from the limited service of the existing logistics service.
Despite the constraints of time and capital, he said he succeeded in showing his commitment to unifying logistics for the value customers want. One-day delivery was successfully settled without reducing customer options or incurring additional delivery costs.
After the rocket delivery was settled, it introduced the introduction of the’Rocket Fresh’ system that can deliver even simple foods such as milk on the same day. Coupang also expressed confidence in the infrastructure for fresh foods by referring to the nation’s best’online grocery store’.
He added that the return service also provided a service to easily bring it to the house. They also praised that they removed more than 75% of the wrapping paper by introducing eco-bags so that they could be free from the burden of excessive packaging and environmental destruction.
Chairman Kim also spoke about the newly introduced’employment system’ for social responsibility. It was announced that it was the first among Korean companies to shorten 6 days a week to a 5 day system, following the introduction of a weekly pay system instead of a monthly salary, breaking the conventional logistics and distribution industry practices. By hiring a delivery engineer directly under the name of Coupang Friends, he granted royalties and introduced that he is planning to compensate for shares of about 100 billion won (approximately 90 million dollars). It also claimed that it was the first company in Korea to introduce frontline employees, including non-managers, as shareholders.
Chairman Kim explained that he hopes that Coupang will open up a better world for customers, while also demonstrating that it creates a better workplace for employees. Ultimately, the aspiration is to encourage other companies to follow along, and to improve the lives of workers in general.
He also emphasized that although most of the merchants supplying goods to Coupang are small business owners who earn a small amount of money, Coupang’s active marketing has boosted sales by more than 50%. According to the figures he revealed, Coupang’s expansion in business created more than 25,000 jobs in 2020, more than that of large groups. It ranks first in the private sector.
In the future, it plans to invest an additional $870 million (about 970 billion won) to establish full-filment infrastructure in seven regions, creating thousands of jobs. The goal is to create 50,000 new jobs by 2025. It also revealed that plans are being made for regional development outside of Seoul.
Chairman Kim said that the spirit of Coupang can be found in the bold decision-making that can secure logistics infrastructure construction and integrated network technology. He added that listing is the first step and is preparing for a bigger and more amazing experience. Even though the world Coupang draws hasn’t even started yet, he says’How did we ever live without Coupang?’ Through the message, he also expressed his ambition that daily life without Coupang will become an unimaginable distribution infrastructure.
However, if you look at the stock report, the limitations of Coupang are also clearly revealed. It is explained that the entire retail, grocery, and travel sectors still account for a small proportion. As this division is expected to expand to 434 billion dollars in 2024, it is planning to preemptively engage customers.
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