a growth-stage platform: consistently profitable, cash generative and still expanding. A hard-won path to profitability Much of Coupang’s progress has come from its core Product Commerce segment, which includes its flagship Rocket Delivery and Rocket Fresh grocery services. The segment posted US$6.87 billion in revenue, up 6 per cent year on year. Despite a maturing domestic market, Coupang continues to squeeze more out of its loyal user base, thanks to a combination of improved logistics efficiency and expanded assortment. Coupang’s journey to profitability has been long and, at times, uncertain. Between 2017 and 2021, the company invested billions of dollars into building one of the most sophisticated logistics networks in Asia. Critics questioned the sustainability of its model, but the investments now appear to be paying off. Coupang first posted a full-year profit in 2023, a milestone that marked a significant turning point for the company. Now, its quarterly results suggest this is not a fluke but the result of a carefully executed long-term strategy. Premium expansion and customer engagement Coupang has also been busy broadening its appeal beyond fast delivery. Its R Lux premium retail segment continues to grow, bolstered by the addition of international brands such as Kiehl’s, Dolce & Gabbana and Jo Malone during the quarter. “This selection expansion is driving strong engagement from our customers, where we saw the number of customers purchasing in nine or more categories grow more than 25 per cent this quarter,” Bom Kim, CEO of Coupang, said in the earnings call. To better serve Korea’s growing population of expatriates and English speakers, Coupang has also launched an English-language interface for its popular shopping app. The update supports English in everything from product searches and order tracking to detailed product information and member benefits, enhancing accessibility for non-Korean speakers. Global scaling While South Korea remains its anchor, the New York-listed firm has progressively scaled its international presence. In Taiwan, where Rocket Delivery launched in late 2022, Coupang expanded its selection and forged direct relationships with suppliers, both global and local brands, including Coke, Pepsi, P&G and Unicharm. “This helped drive an expansion in selection of nearly 500 per cent this quarter,” said Kim, adding customers in Taiwan are coming back more frequently and spending more each time they visit. Coupang also launched its Wow membership program in Taiwan, a move that mirrors the success of its Korean subscription offering, which combines free shipping, streaming content and exclusive discounts to build stickiness among users. Meanwhile, though Farfetch’s contribution to Q1 results remains small – Coupang did not break them out – its strategic value is clear. Kim said in the earnings call that Coupang is positioning Farfetch for its next phase of expansion. “We made significant progress over the past few quarters streamlining both the operations and customer offerings that align with this strategy,” said Kim. Navigating regional competition and geopolitical risk Even as Coupang posts record numbers, competition in its home market is heating up. Chinese e-commerce giants, facing growing geopolitical and tariff-related headwinds abroad, are increasingly turning their attention to neighbouring South Korea. According to The Korea Herald, JD.com’s logistics arm, JD Logistics, recently established two self-operated logistics centers in South Korea, marking its first physical footprint in the country. Earlier this year, South Korea’s Shinsegae Group entered into a strategic partnership with Alibaba Group to co-launch a new e-commerce venture, which is set to debut in the first half of 2025 in collaboration with Naver’s shopping platform. Coupang, however, remains confident in its positioning. “On impact of macro, we have not experienced a meaningful impact on our business from recent global events,” said Gaurav Anand, CFO of Coupang. “We recognise that no economy is immune to the current global conditions, and we will continue to closely monitor changes in the macro environment.” Further reading: Coupang bets on Farfetch turnaround while rivals gain ground