[Column] Challenges Coupang Must Overcome to Become the 'Second Amazon'

Can Coupang, an e-commerce company that has decided to enter the U.S. stock market, become the "second Amazon"? Experts believe that the real beginning is now. The key lies in how the funds raised from the global capital market are utilized, and it is important to keep in mind that the bigger the leap, the greater the risks. Attention is also focused on whether Kim Beom-seok, chairman of the board who holds Coupang’s management rights, can maintain leadership comparable to Amazon founder Jeff Bezos. Marketing innovation using advanced technologies such as big data and artificial intelligence (AI), as well as employee welfare and retraining, are challenges that need to be addressed.

Coupang’s role model is Amazon. There are many similarities in business models and services, such as customer-centricity, fast delivery, and low-price strategies. For Coupang to grow into a global company like Amazon, a direct listing on the New York Stock Exchange could be the best choice. Debates like “Which country does Coupang really belong to?” or “Are they making money in Korea and going to the U.S.?” are outdated in the borderless e-commerce market. Strictly speaking, the listing target is the parent company “Coupang LLC (U.S. corporation),” which owns 100% of Coupang’s shares.

Lee Mu-hyung, director at Hyundai Research Institute, said, “Coupang is pioneering a path in attracting global capital,” adding, “It has received positive evaluations befitting a global company in the massive capital market.” However, he warned, “Even if they succeed in raising large-scale funds, they will be evaluated again depending on where they invest and what business model they pursue. If Coupang’s vision is not clear after the IPO, the stock price will plummet.” He emphasized that Coupang must use the IPO as a stepping stone for secondary growth and demonstrate improved performance. While the U.S. capital market offers many opportunities, it also carries significant risks.

So far, Coupang has incurred over 4 trillion won in accumulated losses due to investments in infrastructure for quantitative expansion, such as direct product purchases for fast delivery and building more than 100 logistics centers nationwide. In contrast, Amazon focused on software. Through Amazon Web Services, it increased sales and accurately identified consumer needs by utilizing advanced technologies like big data and AI. The phrase “to be amazoned” was coined in the U.S. to describe market domination. This was possible thanks to Bezos’s leadership, which demonstrated a long-term perspective and innovative thinking, even venturing into space business. Bezos valued an internal environment where employees could express their opinions regardless of position, while treating members with respect.

Now, Coupang must pursue qualitative growth beyond quantitative expansion. In addition to a low-cost structure, bold strategies to expand business categories with a future outlook are necessary. The unique national sentiment of Koreans should also be considered. Coupang must take an active stance on issues such as repeated overwork deaths among employees and inequality faced by delivery workers. Having attracted attention on the global stage beyond being a unicorn company, Coupang must now demonstrate new roles and leadership for venture companies dreaming of overseas expansion.

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