The fire at the Coupang Deokpyeong Logistics Center was completely extinguished on June 22, six days after the outbreak. The fire has been extinguished, but as issues such as the initial response to this fire, the morality of the owner, and the sale of Rising Sun flag-related products continue to arise, the fire spreading through boycotts and withdrawal from Coupang is getting stronger.
Many articles have already known what kind of problem there is, but between fiction and truth, Zetaker Hendyver wondered whether Coupang, which had grown rapidly after listing on US stocks, is really doing well, and whether huge losses are improving. In today’s post, we’ll look at the reasons why the Coupang boycott and withdrawal from Coupang spread and Coupang’s management performance. 쿠팡 탈퇴
Boycott of Coupang and how to withdraw
There are three main reasons why Coupang is being criticized by society for its warehouse fire. JFactory
In the initial response to the fire, despite the workers’ request for initial action, the management staff sarcastically said, ‘Don’t laugh and go home,’ and the fire continued. The fact that there were frequent fatal accidents, and coincidentally, the resignation of Chairman Kim Beom-seok and the date of fire overlapped, raising suspicions that the resignation was to evade responsibility.
In addition, as it became known that Coupang Eats was not able to protect the store owner from abusers, consumer complaints that had been accumulated by Coupang Eats’ bystander posture of mechanically delivering only the requests of users who make money exploded.
In addition to this, it is known that Japanese Rising Sun Flag-related products such as stickers and umbrellas with the Rising Sun flag have been sold at Coupang Shopping Mall.
Just as the boycott of Namyang Dairy, which aroused a controversy over the agency’s abuse of power for several years, the drug case of the owner’s family, and the fact that yogurt has a special effect on Corona, eventually led to the owner’s relinquishment of management rights, this move to boycott Coupang is also unusual.
Come to think of it, the standards by which Korean consumers evaluate companies are not just for consumers. The business ethics between the company and the agency, the working environment of the employees, and the attitude to respond to the bad habits of consumers.
Coupang’s business performance: Is it a little better?
Coupang became a role model for e-commerce by recording 13 trillion won in sales and listing on the U.S. stock market at once through the marketing of rocket delivery in e-commerce. Only the good looks have been highlighted.
Let’s briefly summarize what kind of company Coupang is.
Coupang was established in 2013 and is a business purpose of e-commerce retail business. The number of employees is 9,540 and the credit rating is ccc+. Are you surprised by your credit rating? It is a company that has never made a profit since its establishment.
If you look at the comparison table of financial ratios of Coupang and the same industry, the sales growth rate is three times higher, but the operating profit rate is at a loss! Equity ratio (stability) -6.8%, interest payout dividend -7.03%… One good thing is the sales growth rate.
A quote comes to mind at this point. A salesperson came to sell something and said this.
“Selling cheap is not sales. Selling cheaply at a loss is a way that anyone can sell. True sales are selling a lot at a high price.”
I’m not saying to take profit, but I want to tell Coupang from a shareholder’s point of view. (I’m not a former shareholder.^^)
Would you like to see Coupang’s management performance since its establishment? It started with 47.8 billion won in sales in the first year and has grown tremendously to 13.92 trillion won in sales in 8 years. However, from operating profit, it is running a deficit of as low as -120 billion won and as much as -1,138.3 billion won. I guess I went to the US because I couldn’t go public in Korea.
As everyone knows, Coupang’s largest shareholder is SoftBank, a Japanese company that has secured a 33.1% stake by investing $3 billion in two rounds. Although Coupang is growing into a global company by investing from the perspective of Chairman Son Jeong-eui, it is the Korean consumers and store owners, and the employees of Coupang, that have been the basis for the company to grow using the capital.
If the listing on the US stock market has provided a foothold to go global, shouldn’t it be repaid for the welfare and consideration of the hardworking employees?
It was Hendiver.