Thanks to the unique “Ppalli Ppalli (hurry, hurry)” culture and one of the best logistics networks in the world, Korea’s delivery industry is thriving, with its range widening and services getting even more specific.
From garments and books to groceries and even breast milk, nearly everything can be delivered for a bargain, and the time has reduced to nearly the blink of an eye, offering real-time services.
Anything you want
The most iconic item in the delivery market is food. Whether you call for a delivery service on Haeundae Beach in Busan, near the Hangang River bay or in the park, you can place an order for nearly any kind of grub with a phone call or, these days, a smartphone application.
According to the Ministry of Food and Drug Safety. Korea’s food delivery market is estimated at well over 12 trillion won ($10.3 billion), more than 10 percent of the global market. “As many people are jumping into the restaurant business, operating around the clock, you can order food delivery service 24/7, which creates huge demand and supply at the same time,” an analyst said.
People are even ordering breakfasts, curated by nutritionists, delivered to their doorstep everyday on a subscription basis.
“From fruits to vegetable salads and steamed rice cakes, we are seeing an increasing number of customers who do not have the time to shop or cook but do not want to skip meals,” an official at the breakfast curation and delivery service, Body Creator, said.
The delivery items also vary. With the e-commerce boom, nearly everything can be bought and sent to one’s doorstep.
Groceries, regarded as very difficult in the logistics industry because consumers want to see and feel vegetables and fruits, have broken the barrier.
From online GMarket to off-line market leaders Lotte and Shinsegae, the retailers have managed to keep freshness intact with refrigerator-equipped trucks and by curating the products carefully.
“We were also surprised to find that groceries became the best-selling category on our online retail outlet, thanks to the double-income families lacking time and energy to shop for food. They also expressed satisfaction with the food they received. The company is planning to strengthen this area,” said a spokesperson at E-Mart, a discount chain under Shinsegae.
If there is something that you cannot buy, you can always turn to a motorbike “quick” courier service for a pickup.
Thirty-four-year-old Cho Hye-jin uses the quick service to deliver her breast milk to her 1-year-old daughter from work. She pumps the breast milk regularly in the company’s designated room, then wraps the bottles with insulating material and hands it over to the deliveryman, who hurries off straight to her house and delivers it to her mother, who looks after the baby.
“Breast-feeding was the most concerning issue before I went back to the company. But the quick delivery system is a blessing,” Cho said.
In a country with more than 2 million registered motorbikes, the quick service has reduced time and costs of delivery. It has grown into a 3 trillion won market, which has large corporates such as Daum Kakao mulling its potential.
“Some of the global logistics giants have also considered venturing into the quick delivery system, but at the last minute gave up because it was a ‘uniquely Korean’ practice,” a market insider said.
Time becomes deal breaker
More and more companies are competing over delivery time.
E-commerce operators have established their own delivery systems, which guarantee “bullet-speed” delivery.
The initiator was online bookstore Yes24.com, which allows customers in Seoul and the metropolitan area to receive the product on the same day if you place an order before noon.
Taking service to another level, the deal-of-the-day website Coupang introduced its “Rocket Delivery” service, which gives customers free delivery within 24 hours if they buy items worth more than 9,800 won. And for residents in Ilsan, northern Gyeonggi Province, the company delivers the goods within 2 hours of order with an extra charge of just 5,000 won.
Even convenience stores have joined in.
Convenience store franchise CU provides delivery services for purchased items via its CU application that are worth more than 10,000 won within 40 minutes of an order. “This is a convergence of delivery system and IT solution providing instant service,” the company stated.
All eyes are now on drone delivery, which is expected to dramatically slash delivery times.
The Transportation Ministry said it will select five companies and five regions in October to run pilot drone courier services by the end of the year.
“We anticipate that the drone courier system will be fully commercialized no later than 2030. We are now testing the waters and technologies,” the ministry stated.
By Bae Ji-sook (
baejisook@heraldcorp.com)
