Ecosystem of South Korea E-commerce Logistics Market
South Korea E-commerce Logistics Market is at a growing stage and has a moderately fragmented market with about more than 100 domestic and international players operating in the e-commerce logistics market. CJ Logistics have greater coverage in comparison to other logistics companies and provides integrated transportation and logistics services to individuals and companies in South Korea. Naver, Auction and G-market are the major Consumer to Consumer (C2C) platforms in South Korea E-commerce market.
Key Findings
- In the coming years, higher smartphone penetration rate, better internet connectivity as well as vision 2030 of South Korea will play an important role in increasing the reach of E-commerce.
- Updated Technology such as Live Tracking, Automation, WhatsApp Bots, AI Systems, IoT, and Telematics will be a major trend used by e-com logistics players.
- It is expected that the growing e-commerce sector will create opportunities in intracity logistics eventually since South Korea has a well-developed transportation system. So, the orders can be delivered easily from one place to another.
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Busy Consumer Lifestyle & Preference towards Online Orders: Busy consumer lifestyle where both partners are working mostly prefers online shopping rather than wasting time hopping from store to store to buy different products. Online retailers have made it effective to purchase all their needs from a single platform, which saves a lot of time for consumers. Imposed social distancing measures and curfews caused a mass switch to online shopping. The outbreak of COVID-19 has pushed most of the retailers to move to offline to online (O2O) methods of sale. E-Com logistics players started partnering with healthcare & grocery establishments to provide timely provision of necessary products as they had strong network capabilities.
Electronic Vehicles & Delivery Drones and Artificial Intelligence: Over a period of time, the invention of electric vehicles is expected to lead to a greener delivery system that is environmentally friendly. Logistics companies are adopting the electric vehicle trend for their logistics needs because they are cost-effective, lightweight, and environmentally friendly. Also, future is promising with drone deliveries and artificial intelligence with automated delivery systems or the ability to deliver in tough terrain.
Technological Advancements and Infrastructure Development: Technological Advancements helps to improve and enhance supply chain transparency and security leading to improved cost efficiency. Whereas expansion of logistics infrastructure such as intermodal connectivity, logistics parks and ports help create business opportunities.
Same Day Delivery & Offering discount and price schemes: Switching to same-day delivery is a significant boost to online business performance and gives significant competitive advantage over competitors and improves customer experience. Also, if the price is too high, it may result in the abandonment of the basket. However, it can be overcome by offering discounts and price schemes to consumers so they do not feel the burden of the price.
Analysts at Ken Research in their latest publication “South Korea E-commerce Logistics Market Outlook to 2026F– Driven by Growth in Online Shoppers along with Introduction of New Age Technologies by Logistics Players” by Ken Research observed that E-Commerce Logistic market is an emergent Logistic market in South Korea at a growing stage from the economic crisis after pandemic. The Merger, acquisition and key investment, increase in number of warehouses along with online shoppers buying behavior is expected to contribute to the market growth over the forecast period. The market is expected to grow at a 4.7% CAGR during 2021-2026F owing to rising demand of same day delivery and favorable government regulations for South Korea e-commerce logistics market.
Key Segments Covered in the report: –
South Korea E-Commerce Logistics Market
By Delivery Period (By number of shipments in %), 2021 & 2026F
- Same Day
- 1 -2 Days
- 2-4 Days
- More than 4 days
By Volumetric Weight (By number of shipments in %), 2021 & 2026F
- KG
- 1-2 KG
- 2-5 KG
- 5-10 KG
- Greater than 10 KG
By Types of Shipment (By number of shipments in %), 2021 & 2026F
- Domestic Shipments
- International Shipments
By Delivery area (By number of shipments in %), 2021 & 2026F
- Intercity
- Interacity
By Mode of Shipment (By number of shipments in %), 2021 & 2026F
- Ground
- Air
- Water
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By Online Sales (By number of shipments in %), 2021 & 2026F
- Mobile
- Desktop
By Types of Company (By number of shipments in %), 2021 & 2026F
- 3PL
- Captive
By Type of Commerce (By number of shipments in %), 2021
- B2C Commerce
- B2B Commerce
By Modes of Payment (By number of shipments in %), 2021 & 2026F
- Prepaid (Credit Cards, etc.)
- Cash on Delivery (COD)
By Accepted & Returned Products (By number of shipments in %), 2021
- For Prepaid, Accepted Products
- For Prepaid, Returned Products
By Modes of Payment (By number of shipments in %), 2021 & 2026F
- E-wallet (Kakao pay, Naver Pay,Samsung Pay,Toss,Payco etc.)
- Local cards
- Bank transfer (direct & virtual)
- International Cards (VISA, Master, Amex, Union Pay)
- Cash on Delivery
- Other (phone carrier billing, e.g., SKT, KT, LG U+, etc.)
By Product Category (By number of shipments in %), 2021 & 2026F
- Food and Beverages products
- Food delivery
- Home appliances/electronics/communication devices
- Travel and transportation services
- Household goods
- Others
Key Target Audience
- E-Commerce Companies aiming to establish in USA
- USA E-Commerce logistics industries
- Government Bodies & Regulating Authorities
- E-Commerce Industry
- Logistics industry
- Shipping company
- Warehousing Companies
- E-Commerce users
- Industry Associations
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Time Period Captured in the Report:
- Historical Period: 2018-2021
- Base Period: 2021
- Forecast Period: 2021-2026F
Companies Covered:
- CJ Logistics (NAVER)
- Coupang
- Wemakeprice
- Mesh Korea
- Lotte Global Logistics Center
- Hanjin
- Pantos
- Sebang
Key Topics Covered in the Report
South Korea E-commerce Market Overview
South Korea E-commerce Logistics Market Overview
Business Cycle and Genesis of South Korea E-commerce Logistics Market
Value Chain of South Korea E-commerce Logistics Market
Ecosystem: South Korea E-commerce Logistics Market
Timeline of South Korea E-commerce Logistics Market
South Korea E-commerce Logistics Market Size
South Korea E-Commerce Logistics Market Segmentation
Overview of E-commerce Warehousing Sector in South Korea
Government Initiatives and Bodies
SWOT Analysis of South Korea E-commerce Logistics Market
Growth Drivers of South Korea E-commerce Logistics Market
Challenges of South Korea E-commerce Logistics Market
Key Trends in South Korea E-commerce Logistics Market
End User Analysis
Covid-19 Impact on the South Korea E-Commerce Logistics Market
Future Outlook to South Korea E-Commerce Logistics Market
Competition Analysis: Market Share of E-Commerce Logistics Players in South Korea
Cross Comparison of Major E-Commerce Players
Cross Comparison of Major Logistics Players
Analyst Recommendation
For more insights on the market intelligence, refer to the link below: –
Future Outlook of South Korea E-commerce Logistics Market
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