Listed and sold e-commerce Event’Storm Eve’

ⒸYonhap News

The e-commerce (e-commerce) market is the’night before the storm’. With Coupang’official’ listing on the US New York Stock Exchange, large events are lined up in related industries this year. In the face of internal and external uncertainties, such as growing concerns about the re-proliferation of Corona 19, the industry is interested in whether each project, such as a sale or listing, will cruise.

According to industry sources on the 13th, Coupang filed a report to the US Securities and Exchange Commission (SEC) to list Class A common stock (common stock). The number of common stocks to be listed and the range of offering prices are still undecided.

Coupang plans to list its common stock on the New York Stock Exchange (NYSE) under the’CPNG’ ticker code. Under the IPO process, Coupang is expected to begin trading stocks in NYSE soon after the roadshow for investors is outlined and the public offering is outlined.

Until now, Coupang has been pursuing the’Korean Amazon’ and investing in top-line growth. Coupang, which has pursued a strategy that prioritizes securing stable funds even in the face of losses, is known to have rapidly depleted its investments since 2018 without attracting large-scale investments. Another reason for the analysis of’securing real ammunition’ is that the IPO is rushing more than expected.

An official from Coupang explained, “In relation to the IPO, there is no plan to submit a stock report in Korea, so there will be no investment solicitation for domestic investors.”

If an IPO is made in the United States as Coupang’s plan, it will be reborn as a large distribution company with a maximum corporate value of 20 to 40 trillion won.

It is estimated that Coupang raised more than 40 trillion won in transactions last year. Based on 168 distribution centers nationwide, it is said that it has established a model for increasing fee income by increasing its market share in the open market. Also, based on the traffic secured through the next-day delivery service, △Payment (Coupei) △Food Delivery (Coupangitsu) △Courier Business △OTT Service (Coupangplay) business is gaining momentum.

However, there are homework to be solved. It’s time to turn a profit. Although the volume of traffic is increasing and the market share in the retail market is expanding, the fierce’rice bowl battle’ as the e-commerce business has solidified into the shopping trend can be a burden on future earnings.

Coupang’s influence is expected to accelerate the IPO speed of domestic e-commerce companies. The representative company is Timon. Tmon officially officially listed on the KOSDAQ at the beginning of last year, and selected Mirae Asset Daewoo as the host company for an IPO.

In September last year, it succeeded in attracting 400 billion won worth of investment, and in November, Vice President Jeon In-cheol, who served as CFO of Big Hit Entertainment, was hired as the new head of the finance division for IPO work. However, the listing attempt was temporarily suspended as the Korea Exchange placed a prerequisite to resolve the capital erosion caused by the deficit. In response, Tmon submitted a new standard of audit report to transparently disclose its profit structure, and started improving profitability based on the’time commerce’ strategy.

Also noteworthy is the move of 11th Street. SK Telecom, the parent company of 11st Street, has announced that it will promote the IPO of its subsidiaries through a conference call for announcement of earnings.

If Amazon-related products are purchased on 11th Street, this will also affect the domestic e-commerce market. Some predict that a paid membership model such as Amazon Prime will be used to lock in loyal customers and expect a’lock in’ effect. 11st, which has focused on improving profitability, has only revealed that it is preparing a service so that Amazon products can be purchased directly.

Meanwhile, there are companies that have started to find new owners. It is eBay Korea with a ransom price of 5 trillion won. If eBay Korea is actually sold, the domestic online shopping mall market is expected to change.

This is because eBay Korea, which operates Gmarket, Auction, and G9, is considered a’dinosaur’ in the online shopping mall industry with a transaction amount of 19 trillion won (industry estimate) in 2019.

Last year, eBay Korea’s sales were $1,390 million (1,5478 billion won), up 12.2% from the previous year. The transaction amount is estimated to have exceeded 20 trillion won last year from 19 trillion won in 2019. Moreover, in the case of last year, the growth rate seems to have been steep due to the increase in demand due to corona.

However, related industries are skeptical about the possibility of selling eBay Korea. This is because the market share declines and operating profits are showing stagnation, and domestic distribution conglomerates, each of which are major candidates for acquisition, are increasing the competitiveness of e-commerce platforms.

An industry official said, “Each company has been trying to operate with a focus on expanding its appearance, but the key is how to overcome the financial structure that has lost face in terms of profitability.” “I think it’s time to put it up.”

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