Coupang, a leading e-commerce platform, is shifting its international focus from Japan to China. This strategic move comes as part of Coupang's broader development plan for the future.

Financially, Coupang has been on a steady path towards profitability. According to financial reports, in the first quarter of 2024, the company reported net revenue of $7.1 billion, representing a year-over-year growth of 23% based on reported data and 28% based on currency-neutral calculations. When excluding Farfetch, the reported growth was 18%, or 23% based on currency-neutral calculations.

Despite this, the net income attributable to shareholders was $5 million, a decrease of $86 million compared to the previous year. Excluding Farfetch, the attributable net income was $98 million. Diluted earnings per share were $0.00, down from $0.05 in the previous year. Excluding Farfetch, adjusted diluted EPS was $0.05.

Commenting on the situation, Gaurav Anand, Coupang's Chief Financial Officer, mentioned that the Farfetch project is still in development and not yet profitable. However, they expect Farfetch to achieve near-positive adjusted EBITDA on a run-rate basis by the end of 2024.

Meanwhile, Kim Beomseok, Coupang's founder and CEO, revealed plans for the company's further development. Coupang intends to strengthen its logistics infrastructure, speed up delivery times, and offer free shipping to remote areas. The company also plans to invest $1.6 billion in purchasing and selling Korean-made products and $400 million to enhance benefits for WOW members.

Looking back at last year, Coupang's growth was impressive. In the fourth quarter of 2023, the company's net revenue was $6.6 billion, a 23% increase from the previous year. In the first quarter of 2024, revenue reached $7.1 billion, marking a 23% increase. This marks the seventh consecutive quarter of profitability since Coupang turned profitable in the third quarter of 2022.

The continuous growth is attributed to the increasing number of active buyers on the Coupang platform, which grew by 16% to reach 21 million. Additionally, the average spending per active buyer increased by 3% to $312 compared to the previous year.

On the seller side, the number of sellers on the Coupang platform has surpassed 210,000, with annual transaction volume (GMV) surpassing the 9 trillion won mark. This makes Coupang the top platform for both sellers and GMV in Korea.

To further expand its business, Coupang has set new strategic goals for logistics, cooperation with Korean small and medium-sized enterprises (SMEs), and overseas exploration. The company plans to invest $223 million over three years to improve its logistics network, including building at least eight logistics centers and expanding its "rocket delivery" service nationwide.

Coupang is also actively supporting Korean SMEs by investing more than 680 billion won in 2022 to help small businesses grow. The Rocket Growth program launched in the first half of 2023 attracted over 12,000 SMEs, significantly increasing the number of sellers on the platform.

Internationally, Coupang is shifting its focus from Japan to the Chinese market. As part of its investment plan, Coupang will invest NT$6.06 billion ($185.9 million) to build its third new logistics center and warehouse in Taiwan, aiming to expand its e-commerce business there.

This year, Coupang also invited Chinese sellers to participate in promotional activities for the first time. Chinese sellers can now store their goods in "rocket warehouses," where Coupang handles the delivery. Some items can be delivered the next day, greatly speeding up the delivery of Chinese products.

Despite setbacks in Japan, Coupang remains committed to global expansion. With its sights set on China, the company is poised to make significant moves in the region. The future of Coupang in China is eagerly awaited.