Coupang headquarters in Seoul / Yonhap

Coupang founder Kim Bom-suk / Courtesy of Coupang

Coupang posted an unexpected earnings shock in the first quarter, hit hard by intensifying price war with Chinese e-commerce firms, AliExpress and Temu, the company said Wednesday.

The Nasdaq-listed e-commerce firm swung into a net loss of $24 million during the same period for the first time in seven quarters. The dismal earnings performance was attributable to the unexpectedly rapid rise of the Chinese competitors and Coupang's acquisition of luxury fashion retailer Farfetch which incurred a loss of $31 million.

Coupang founder Kim Bom-suk, also known as Bom Kim, also voiced concerns over the escalating threat from its Chinese rivals.

"The rise of the Chinese e-commerce firms shows that the entry barrier in the retail industry remains low, and customers can switch to other shopping options easily than any other industries, simply with only a few clicks," Kim told investors during a conference call.

Coupang, however, reported sales growth of $7.11 billion between January and March, up 28 percent from the previous year, according to its regulating filing reported to the U.S. Securities and Exchange Commission.

Its operating profit came in at $40 million, down 61 percent during the same period.

Kim pledged to widen investment to attract more customers despite the intensifying retail rivalry here.

"Customers are not hesitant to spending more at a better shopping venue," Kim said. "We should catch their heart by selling top-quality products and services to them."

Toward the end, the company promised to execute more investment for quality made-in-Korea products. It said its direct purchase of Korean products will expand to 22 trillion won in 2024, up by more than 29 percent from 17 trillion won from a year earlier.

Coupang expects the strategy to win more trust from customers and help solidify its footing as the nation's top shopping platform.

The company also displayed its unwavering willingness to gain a greater competitive edge with its ultra-fast delivery service.

"Our primary goal is to enable customers to enjoy our free delivery services nationwide — even isolated islands and mountainous areas," Kim said. "We will expand capital investment worth billions of dollars to strengthen our fulfillment and logistics infrastructures to achieve the goal."

Earlier, Coupang shared its plan to invest more than three trillion won over the next three years until 2026 and operate more logistics centers across the nation. The company also pledged to invest 5.5 trillion won this year for its free shipping and free parcel return service.

According to data from market tracker Wiseapp Retail Goods, Coupang tightened its position as the nation's most-sought-after shopping platform with its number of monthly active users reaching 30.26 million in the first quarter on average. AliExpress came in second with 8.07 million. That of Temu reached 6.6 million.