Kim Bom-Suk’s ‘Korean-Style WOW Strategy’ Works: Coupang Achieves Record Quarterly Results with Rapid Global Growth

[Korea Financial Times, Park seulgi] "Massive Potential to Deliver the Same WOW Experience That Resonated with Korean Consumers in Taiwan"

Kim Bom-Suk (Bom Kim), Chairman of Coupang Inc., made this remark during the company’s earnings call on May 7 (KST), as he announced the highest quarterly performance in the company’s history.

Coupang has drawn attention with a record-breaking performance in the first quarter of this year. The achievement is largely driven by the rapid growth of its global operations, particularly in Taiwan—a key area of focus for Chairman Kim—and the expansion of platforms like Farfetch.

Coupang’s Q1 revenue reached KRW 11.4876 trillion (USD 7.98 billion, based on an average quarterly exchange rate of 1,452.66 KRW/USD), up 21% year-on-year. Operating profit soared over 300% to KRW 233.7 billion (USD 154 million). Net income turned positive at KRW 165.6 billion (USD 114 million), reversing a KRW 31.8 billion loss from the same period last year.

Notably, the global growth businesses including Farfetch-acquired early last year-and Taiwan, along with Coupang Eats, posted combined revenue of KRW 1.5078 trillion (USD 1.038 billion), up 78% year-on-year. EBITDA losses in these growth business sectors narrowed slightly to KRW 244 billion (USD 168 million) from KRW 247 billion a year earlier.

‘WOW’ Strategy Also Succeeds in Taiwan

Coupang launched Rocket Delivery and Rocket Direct Purchase services in Taiwan in October 2022. Within six months, its app became the most downloaded shopping app locally. Coupang continued aggressive logistics investment, opening three fulfillment centers with over KRW 360 billion invested to build fast delivery capabilities. As a result, Taiwan Business has become a core growth driver for Coupang.

Chairman Kim said, “We are building a foundation for greater growth and profitability through investments in growth businesses. Taiwan is a particularly exciting opportunity.” He highlighted progress in expanding product categories and establishing direct relationships with global brands like Coca-Cola, Pepsi, P&G, Unicharm, as well as important local Taiwanese brands.

In Q1, Taiwan’s product assortment grew nearly 500%, with these brands operating under Rocket Delivery. Coupang also launched a paid membership program, ‘WOW Membership,’ in Taiwan this quarter, mirroring the Korean model. Kim noted, “WOW Membership provides tremendous value and discounts to members, boosting their spending.”

Customer response in Taiwan has been positive, with increasing repeat visits and spending. Kim expressed confidence that maintaining disciplined capital allocation will enable Taiwan to follow a growth trajectory similar to Coupang’s product commerce business, creating significant shareholder value over the medium to long term.

Farfetch, Once Facing Bankruptcy, Shows Signs of Revival

Farfetch, the luxury e-commerce platform acquired by Coupang for KRW 650 billion last year, is laying the groundwork for a comeback. After going public in New York in 2018 and enjoying a pandemic-driven boom, Farfetch’s stock plummeted post-pandemic, pushing it to the brink of bankruptcy.

Despite this, Coupang remains optimistic about Farfetch’s potential in the global luxury market, valued at USD 400 billion (about KRW 520 trillion), especially given Korea’s world-leading per capita luxury spending. Kim described Farfetch as a “landmark company in luxury” and pledged to focus on stable, prudent growth as a private company while delivering premium experiences for top global brands.

Farfetch has been steadily improving profitability, achieving adjusted EBITDA profitability of KRW 41.8 billion in Q4, one year after acquisition. Kim said Farfetch is now reorganizing operations to expand globally, emphasizing delivering the best luxury products and experiences worldwide.

Korean Commerce Business and R.LUX Continue Upward Momentum

Coupang’s domestic product commerce segment, including Rocket Delivery and Rocket Fresh, grew 16% in Q1. Active customers in this segment increased 9% year-on-year to 23.4 million.

Kim emphasized that this sustained growth is the result of years of strategic investment and systematic execution, even during periods without visible results.

The ‘Rocket Growth (FLC)’ program, enabling marketplace sellers to use Rocket Delivery, is growing faster than the overall business. Kim explained, “Coupang’s speed, convenience, and efficiency have become powerful growth drivers for sellers. Rocket Growth lowers barriers for tens of thousands of small businesses by handling storage, packaging, delivery, and returns.”

Technological innovation, automation, and robotics investments have yielded significant benefits. In Q1, automated picking, packing, and sorting systems improved, supported by machine learning for precise demand forecasting and inventory allocation.

Coupang’s luxury beauty vertical, R.LUX, is also receiving positive feedback. Kim noted that expanding product categories across all price points in Korea’s Rocket Delivery service has resonated well with customers.

He added, “Customer engagement has increased, with over 25% growth in customers purchasing across nine or more categories this quarter. Investing in faster, more reliable delivery further boosts retail spending, creating a virtuous cycle of product assortment expansion.”

Looking ahead, Coupang plans to continuously expand Rocket Delivery coverage in Korea, offering same-day, dawn, and next-day delivery options to more customers.

Park seulgi (seulgi@fntimes.com)