Entering Southeast Asia! Korean e-commerce giant Coupang opens Singapore site

South Korean e-commerce giant Coupang Corp. has launched a site in Singapore, marking its first foray into an overseas market, foreign media reported .

Data shows that in 2020, Coupang's total revenue increased by 91% compared to 2019 to US$11.97 billion.

Coupang product categories include electronics, beauty products, travel and cultural event planning, etc.

For six consecutive years, Coupang's retail sales grew more than 35 times, the number of customers increased fourfold, and the average order amount increased sixfold. It was once called the Korean version of "Amazon."

After continuously expanding its business scope, Coupang began to develop digital financial services and built its own logistics and distribution system, focusing on the timeliness of delivery and returns.

There is no doubt that Coupang has certain advantages in logistics.

It is reported that it operates a fairly large scale of B2C logistics, covering 70% of South Korea's population, and provides a same-day "rocket delivery" service in South Korea , which is optimized for operations in densely populated areas.

Same-day delivery services are not yet common in Singapore, so Coupang may have the upper hand in this regard.

Singapore has a population of 5.9 million and a smaller population base . Due to its geographical location , Singapore is seen as a strategic location for online retailers to enter the Southeast Asian market.

Singapore is also similar to South Korea in that residential and commercial areas are close to each other, making it easier for Coupang to experiment with its distribution and logistics systems.

Coupang was South Korea's top e-commerce company in 2020 with a 19.2% market share, compared with Naver Corp's 13.6% and eBay Korea's 12.8 % , according to Euromonitor data.

In March this year , Coupang was listed on the New York Stock Exchange , so when the news of Coupang opening a site in Singapore came out, it caused quite a stir in the industry.

The Korea Economic Daily reported that Coupang has hired hundreds of employees in Singapore since last month , ranging from entry-level to executive positions performing various functions.

Currently, Singapore's e-commerce market is dominated by Tencent-backed Shopee , Alibaba-backed Lazada, Qoo10 , Amazon and Ezbuy.

Apparently, Coupang has been preparing to enter the Southeast Asian market since last year , and although Singapore is not considered a major market for e-commerce, Coupang 's expansion into Singapore may also indicate its eagerness to compete with Chinese and American e-commerce giants.

Korean e-commerce

Coupang