The logistical advantage of the South Korean company, Coupang – first company to implement the delivery service seven days a week in that country – decreased due to competitors who have been implementing the same business model
A Coupang Inc., that for a long time dominated the domestic logistics sector with its own service network, now see your competitive advantage diminish
According to industry sources, e-commerce companies that previously struggled to compete with Coupang's logistical efficiency have significantly benefited from the launch of delivery services on all days of the week
New era in South Korean deliveries
An example is CJ Logistics Corp., largest delivery company in Korea, that recently announced the launch of the O-NE, allowing deliveries on Sundays and holidays. This initiative enabled the main e-commerce platforms, that previously did not make deliveries on weekends, they offered deliveries seven days a week, comparing itself to Coupang's logistics model
A Gmarket Inc., another logistics company from that country, also quickly adopted the seven-day delivery system, followed by 11Street, that introduced a same-day delivery service on weekends on February 22
Market impact
The service has been particularly well received by sellers of consumer goods and fashion, with food suppliers representing 24,7% of new registrations in January and February, according to data from CJ Logistics
Although it is still in early stages, we are already observing a remarkable increase in the volume of deliveries, a representative of Gmarket stated
With the proven effectiveness of deliveries seven days a week, other logistics companies, like Hanjin and Lotte Global Logistics, are now considering similar services
Meanwhile, Naver has intensified its competition with Coupang by rebranding its delivery service as N Delivery
Since the launch of Sunday deliveries in April 2024, the volume of transactions increased by 80%, said a representative of Naver. We expect additional growth after the rebranding.”
This transformation in the South Korean logistics landscape represents a significant change for the country's e-commerce market, where Coupang had established a considerable advantage with its Rocket Delivery model. The new competitive reality promises to benefit consumers with more fast delivery options, while online retailers seek ways to differentiate their services in an increasingly competitive market
With pulse information.mk.with.kr
