Dawn, same-day delivery continue to transform Korea's retail industry

Arirang News 2019-03-25

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We have to admit that Korea does have some of the best delivery services in the world.
And now, the market for dawn... and same-day delivery has been growing quite rapidly.
Park Se-young has this story.
From organic fruits and vegetables to ready-to-eat food, …an order placed before 11 p.m. guarantees groceries will be with you by 7 a.m. the next day.
"It's difficult to go grocery shopping with my baby, so being able to buy high quality goods easily using an app is very convenient."
No longer just limited to milk and newspapers, Korea's dawn delivery service is especially popular among dual-income and single-person households.
With major companies and start-ups joining the dawn delivery race, the market value grew from nine million U.S. dollars in 2015 to over 350 million in 2018 ...despite being limited to services in Seoul and some other areas surrounding the capital.
Companies like Shinsegae, Lotte and Coupang have been focusing on upgrading their logistics centers, …with Coupang planning to expand its dawn delivery service nationwide within this year.
For those who still prefer to see and feel fresh produce at the grocery store, simply scanning a QR code on the product pays for the item and schedules its delivery.
There's no need to line up at the cashier or carry the item home.
"Customers are able to see the actual product and read reviews from other customers without having to carry heavy items like bottled water and rice home with themselves."
Scanned items are delivered within three hours from nearby branches.
Because online shopping accounts for about 40 percent of total consumer spending in Korea, the service was introduced to attract offline customers.
"More one-person households are preferring to stay home. Companies are making buying stuff from home easier and putting an emphasis on fast service."
"Bullet-speed" delivery services do come with some downsides like excessive packaging, expensive delivery fees, hours and conditions of delivery work and costly prerequisites for retailers.
However, companies are only expected to take their service to another level …in the fierce race for ever faster service.
Park Se-young, Arirang News.

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