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According to the consolidated earnings report submitted to the U.S. Securities and Exchange Commission (SEC) on the 26th (Korean time) by Coupang Inc., Coupang Inc.'s revenue for the fourth quarter of last year was 11.1139 trillion won ($7.965 billion), a 28% increase compared to the same period last year. This is the highest since the beginning of the quarter.
Coupang’s acquisition of Farfetch was a bold move in the luxury e-commerce space—one that many saw as high risk. But now, with a profitable Q4 and signs of a turnaround, the question is: Can Coupang actually make Farfetch work?
At its peak, Farfetch was a leader in connecting luxury brands with global shoppers. But its rapid expansion led to operational inefficiencies, and the company struggled to maintain profitability. When Coupang stepped in, it promised a technology-driven revival—a playbook that had already worked for its own e-commerce success.
Now, Coupang claims that its strategy is taking root:
✅ Operational Efficiency – Streamlining logistics and tech infrastructure.
✅ Stronger Financials – A shift from losses to sustainable margins.
✅ Brand & Seller Confidence – Ensuring luxury brands stay onboard.
But can Coupang’s expertise translate into success in luxury fashion? Unlike mass-market e-commerce, luxury has its own set of challenges: brand relationships, exclusivity, and an audience that values experience over efficiency. Farfetch’s downfall wasn’t just about operations; it was also about demand shifts, declining investor confidence, and competition from luxury giants like LVMH and Richemont.
If Coupang succeeds, it could redefine how tech-driven efficiency meets high-end retail. If it struggles, it’ll serve as another cautionary tale of why luxury and mass-market strategies don’t always mix.
Reference:
Coupang Announces Results for Fourth Quarter 2024
Despite Monthly Visitors Down, Farfetch Made $460 Million For Coupang This Quarter
Coupang Announces Results for Fourth Quarter 2024
Coupang Says Farfetch Turnaround Is Taking Root
風光收購 Farfetch 之後：Coupang 財務報告轉赤字，又有巨額罰款上訴中！
Coupang posts record 41 trillion won sales, reports operating profit for 2nd year
Coupang eyes luxury business expansion as Farfetch nears profitability