Coupang Breaks Records: How Did It Reach 40 Trillion Won in Annual Sales?
Coupang's Historic Achievement in the South Korean Market
Coupang, the e-commerce giant in South Korea, made history by exceeding 40 trillion won (41.29 trillion) in annual sales in 2024, a 29% growth compared to the previous year. This achievement not only marks a milestone for the company founded in 2010 but also surpasses the combined sales of all the country's department stores (40.6 trillion won). The success is attributed to its business model centered on ultra-fast delivery (Rocket Delivery) and strategic expansion into new markets such as Taiwan and the luxury platform Farfetch. Despite global economic challenges, Coupang maintained an operating profit of over 6,000 billion won for the second consecutive year.
Key Performance Data for 2024:
| Total Sales | 41.29 trillion won |
|---|---|
| Operating Profit | 6,023 billion won (-2.4% YoY) |
| Active Customers | 22.8 million (+10%) |
| Average Spending per User | 446,500 won (+6%) |
Growth Engine: Innovation and Global Expansion
The core of its success lies in Product Commerce (integrated logistics and marketplace), which generated 36.4 trillion won (+18%), representing 88% of its revenue. However, the real boost came from its new businesses:
1. Farfetch and Digital Luxury
The acquisition of this premium fashion platform in 2023 contributed 418 billion won in positive EBITDA during the last quarter, reversing historical losses.
2. Taiwan: Replicating the Korean Model
The implementation of the "WOW Membership" program (premium membership) replicated local success:
- Price: 59 TWD (2,600 won monthly)
- Benefits: Free shipping and 30-day returns
- Web traffic: +160% in 15 months
3. Automation and Technology
Kim Bom-seok, Coupang's CEO, highlighted that only 15% of its infrastructure is automated, suggesting enormous growth potential through AI and robotics.
Challenges on the Path to Success
Although the figures are impressive, the company faced significant obstacles:
- Fine of 162.8 billion won for anti-competitive practices
- Increase in labor costs (401 billion won)
- Losses in emerging businesses: 860.6 billion won in negative EBITDA
The fire at its Deokpyeong logistics center in 2024 generated initial losses, but the insurance payment (244.1 billion won) helped offset them in the fourth quarter.
Impact on the Korean Retail Ecosystem
Coupang's supremacy redefines the commercial landscape:
| Coupang (2024) | Department Stores (2024) | Supermarkets (2024) | |
|---|---|---|---|
| Sales | 41.29 trillion | 40.65 trillion | 37.17 trillion |
| Growth | +29% | +1.8% | +0.6% |
| Operating Margin | 1.46% | 3.2% | 2.1% |
Source: Data compiled from SEC and Korean Statistics Office.
The Voice of Consumers: Fast Delivery and Service
In communities like Naver Blog and Daum Café, users highlight:
- "I receive products in less than 6 hours in Seoul" (User @DeliveryLover)
- "Free returns without questions changed my shopping habits" (Blogger @EcoFashionista)
- Criticism of working conditions in warehouses, a recurring theme in union forums
Analysts on platforms like Nomad Insight highlight the "convenience addiction" generated by subscription models like WOW Membership, which retains 95% of users after the first year.
Future: Towards 60 Trillion Won?
Projections for 2025 point to:
- Expansion in Southeast Asia (Vietnam and Thailand as next targets)
- Integration of augmented reality in luxury shopping via Farfetch
- Investment of 2.3 trillion won in automated logistics centers
Experts like Park Ji-young (IBK Investment) warn about regulatory risks and the need to diversify beyond the Korean market, which still represents 88% of revenue.
This Coupang phenomenon reflects the accelerated digital transformation in Asia, where e-commerce already represents 35% of retail sales, well above the global 21%. Its next challenge: maintaining innovation while balancing profitability and global scale.