Coupang Inc. Chairman Kim Bum-seok announces a remarkable 29% revenue increase, attributing success to international ventures, particularly in Taiwan and advancements in logistics and AI.
During a recent conference call on January 26, Kim Bum-seok, Chairman of Coupang Inc., announced significant growth in the company’s operations, attributing much of the success to its international ventures, particularly in Taiwan and the luxury fashion online mall Farfetch. This call coincided with the company’s fourth-quarter and annual earnings announcement, where it was reported that Coupang reached a record revenue of 41.2901 trillion won (approximately $34 billion) in the past year, marking a 29% increase compared to the previous year.
Chairman Kim highlighted that the growth businesses contributed substantially to this achievement, bringing in approximately 4.8808 trillion won (about $4 billion) in sales over the past year. Specifically, he noted a remarkable 23% increase in sales from Taiwan’s Rocket Delivery in the fourth quarter alone, showcasing the successful application of Coupang’s operational strategies originally developed in South Korea. “Taiwan is a case where the playbook created in Korea has been successfully applied to another market,” Kim remarked, also mentioning the recent launch of the Wow Membership program in Taiwan, which is expected to enhance customer engagement and drive further growth.
Coupang’s operational efficiency improvements were another focal point during the briefing. Kim reported upgrades in fulfillment and logistics processes, which resulted in a nearly 45% increase in same-day or dawn deliveries during the fourth quarter. He also revealed that investments in logistics automation have led to a 16% reduction in trunk costs, reflecting a commitment to streamlining operations while ensuring fast delivery times. Currently, around 10% of Coupang’s logistics infrastructure is highly automated, which the company sees as a pathway to greater cost efficiency in the future.
In line with technological advancements, Kim expressed a commitment to leveraging artificial intelligence (AI) to enhance Coupang’s operations further. “From robotics used in our network to AI that performs trillions of predictions daily, this is the next wave of innovation,” he stated, confidently forecasting that these innovations will contribute to more substantial growth and revenue expansion in upcoming years.
Coupang’s strategy moving forward includes large-scale investments to seize opportunities in the market while maintaining a customer-first approach intertwined with innovative operational methods and a long-term vision. Chairman Kim concluded by affirming the company’s dedication to progressive growth and operational excellence.
Source: Noah Wire Services
