[Click eStock] "Coupang Captured Consumer Loyalty Amid COVID-19"

[Asia Economy Reporter Park Jihwan] Mirae Asset Daewoo analyzed on the 31st that Coupang is expected to experience effects such as a decrease in delivery unit costs due to increased density and an improvement in consumer loyalty as a result of the spread of the novel coronavirus infection (COVID-19). However, no separate investment opinion or target price was presented.

Kim Myungjoo, a researcher at Mirae Asset Daewoo, forecasted, "Coupang, which has many existing users, likely saw a greater increase in shipment volume due to the rise in usage frequency and average spending per existing customer rather than an influx of new customers caused by COVID-19."

Coupang recorded a daily shipment volume of 3.3 million units at the end of January and is currently maintaining a level of 2.5 to 3 million units. Considering the average daily delivery volume of 1 million units in 2018 and 1.8 million units in 2019, this is an overwhelming increase in shipment volume.

Going forward, Coupang is expected to focus on improving profitability through strengthening its platform business and enhancing delivery efficiency rather than aggressive expansion. This is because, as the number one domestic commerce market share holder based on a standalone platform, it is easier to secure revenue from advertising and open market operations.

Researcher Kim Myungjoo explained, "As of 2018, the largest cost burdens for Coupang were labor costs (53%) and transportation and rental fees (13%)," adding, "it is possible to reduce delivery unit costs through increased shipment volume driven by higher average spending per existing customer and increased delivery density."

Researcher Kim emphasized, "Rather than spending on marketing to attract new customers, Coupang is more likely to provide differentiated services to increase the average spending of existing customers," and added, "especially due to COVID-19, consumer loyalty has likely grown even stronger."

This content was produced with the assistance of AI translation services.