Coupang is one of the network shopping mall and South Korea it step by step, since group-buying development to the present scale, has also successfully raised us $300 million, have to say that transformation is very successful, they pay more attention to improving customer experience and has invested a large amount of manpower material resources, believe in the near future can really break the business goal, the amazon in South Korea.
Coupang is a network of retail stores, headquartered in Seoul, South Korea, the Company has announced a private-equity partnerships in BlackRock group (BlackRock Private Equity Partners) led in the new round of financing, raised $300 million in funding, such a large amount is very difficult to let a person not to let a person leave deep impression, to participate in this round of financing and Wellington Management Company (Wellington Management Company), LLP, green rubber Capital Management (Greenoaks Capital Management) and Rose garden investment consultant Company (Rose Park Advisors).
in an interview, the founder of Coupang Jin Fanxi Bom (Kim) said that the money will be invested in two core areas: one is used to support mobile application technology development, the enterprise income and nearly 80% of the total flow of 70% all the resulting, 2 it is to develop can provide the same day delivery (somewhere in South Korea to a few hours to) logistics network services. The company will also enlarge the recruitment of engineering department and r&d department, the department in addition to Seoul, also has offices in silicon valley, Seattle, and Shanghai.
the company did not disclose the current valuation, but Coupang last round of financing, namely in May this year by sequoia capital led the valuation to $100 million in financing to $1 billion. Jin Fanxi, said the company valuations have been growing since then, the latest round of financing for the premium.
this is in the past two months in Seoul of various companies to accept the latest in a series of important investment. Yello Mobile Game developers were Creative Lab Game Studio, respectively, revealed that they completed the $100 million or more than $100 million in financing, and operating take-out application Baedal Minjok Woowa of Brothers in by Goldman Sachs (Goldman Sachs) led round of funding to raise 40 billion won ($36 million).
Coupang self-proclaimed South Korea “money is the most abundant private technology companies”, they have nearly $500 million in cash. In 2013, the company said its annual total sales topped $1 billion, annual sales of more than $2.2 billion. Its main rival eBay to South Korea, but main do C2C, eBay and Coupang is B2C.
since there have been so much cash to the account Coupang why refinancing so quickly?
“our view is now still in the very early stages of e-commerce. We all know that amazon and ali baba was a great success, but most of the business is still offline. Because (South Korea) high population density, and developed the mobile infrastructure, a step ahead, we have the opportunity to do some e-commerce company, finally all of things to do in other countries.” Jin Fanxi said, in 2011, he founded the Coupang.
“we are dealing with two fundamental difficulties: in the offline business, you take in your hand the physical can get a lot of product information, that we are unable to can’t provide in electronic form, but we are more and more with offline store almost equally rich shopping experience. Offline shopping another big advantage is that you can use immediately bring home a commodity. We can’t through the user’s mobile phone to do this, but we are also in constant progress every day, method is to get the goods to be sent within a few hours to the customer’s hands, “he added.
people will often Coupang with amazon, but the two companies in their own situation and market content above there are some key differences.
including the breadth and speed of the south Korean mobile infrastructure. Coupang Jin Fanxi started four years ago, he says South Korea’s smartphone penetration can be comparable to the United States. Now South Korea is the smartphone penetration of the highest countries around the world. In South Korea have 7 of 10 mobile phones are smart phones, and top telecoms operator, SK Telecom, and LG Uplus has deployed profess to speed 4 times in the last iteration of LTE network services.
the powerful mobile network makes it possible to adopt mobile Coupang priority strategy to develop e-commerce platform. , the company said its mobile application has been downloaded 19 million times (refer to the south Korean population is 51.2 million). “We put all the development and optimization in mobile terminal for the first starting point, compared with in other places, you may move to end as a parallel platform or platform.” Jin Fanxi said.
although Coupang counterparts in other countries (such as alibaba and amazon) is still in grope for how to let more users through mobile applications to buy their goods, but Coupang the main difficulty is how to shape the mobile shopping experience more close to the offline stores to buy goods of that kind of feeling, it involves trying to add more content and improve the loading speed.
Jin Fanxi said: “if you have the goods way to present our website earnest observation, will find that contains the information and content is more and more rich, loading speed faster and faster, even more than the mobile commerce platform in the United States. People say that the more abundant information to load the slower, and pallet loading information quickly, but if I cannot get both, to solve the problem is what we focus on right now.”
“I think at this point technology comes in very useful, can let you get more and more rich experience, as much as possible close to you with the hand picked up, touching, flip the feeling of products, and load faster still very quickly, even on my way to work can also access,” he added.
Coupang core strategy of the second part is the construction of its own logistics network in Korea. Coupang delivered in early this year began offering the same day, in some cases can even hours delivery service. In addition to the logistics center, Coupang also has the enterprise special transport fleet of trucks and drivers, their driver called “Coupang people” (Coupang men). Jin Fanxi said, “Coupang person” not just freight. They also play the role of the customer service representative. In order to be able to provide similar real mall shopping experience, Coupang people will do to the customer to send handwritten thank-you notes, gift candles and product samples.
the company two years ago began experimenting with her on the same day delivery service, when it has yet to start building their own logistics center network, before this, Coupang mainly relies on the third party logistics. And tested with the same day delivery service companies in the United States, including Google, amazon, and eBay (although eBay because of its the same day delivery service of eBay Now high operating costs, and modification.) Jin Fanxi believe that Coupang can eventually become other countries on the same day delivery mode model of e-commerce company. “Everyone is trying the same day delivery service in the United States, we feel find the hang of it, so is investing heavily in the mobile logistics technology.”
Jin Fanxi says Coupang is pay attention to timing, ready to “stay to mature at the time of” initial public offering. The company also in preparing for those mobile infrastructure expands quickly catch up with the other countries of South Korea, but recently the main plan is still focused on the south Korean market, “we believe this is a piece of exciting, the rapid development of the market.”