“Coupang stood up”… Naver and CJ Logistics promote’arriving today’ delivery

Input 2021.02.22 11:16

Naver CJ Logistics (000120)Together with the same-day delivery service,’Fast Delivery’ is being promoted. Industry analysts say that this is a move that is conscious of Coupang, which is promoting listing on the New York Stock Exchange. Coupang has become a leader in the e-commerce industry, receiving favorable reviews from consumers for its’rocket delivery’ that delivers orders within a day.

According to the industry on the 22nd, Naver and CJ Logistics are promoting delivery services that include’Delivered on Designated Day’ and’Arrival Today’. The’Arrival Today’ service is to deliver products ordered by consumers at Naver Smart Stores and Brand Stores by 10 a.m. by the afternoon of the day, and products ordered by 2 p.m. on the evening of the same day. An official from CJ Logistics explained, “We have not yet come up with an exact service launch schedule,” and “We are promoting it as part of the delivery cooperation business.”

CJ Logistics, the No. 1 logistics company in Korea, and Naver, the No. 1 platform company, exchanged shares worth 300 billion won in October last year and established a cooperation system. In view of this, analysts said that Naver will enter the domestic and overseas e-commerce market in earnest by supplementing the logistics service that has been pointed out as a weakness.

An industry insider said, “As Naver has become one of the three major shareholders of CJ Logistics through stake exchange, cooperation between the two companies is expected to increase significantly in the future.” “Naver strengthens logistics and ultimately enters the’cross-border e-commerce’ market. CJ Logistics will also accelerate the demand for logistics and delivery as Naver shopping transactions increase,” he said. Cross-border e-commerce, which means’online purchase across borders’, is a market that includes direct and reverse direct sales, and has been growing at an annual average of more than 30% for the past five years.

The first project implemented by the two companies that formed a logistics alliance was the’full-filment system. CJ Logistics is carrying out a service that directly selects and packs products based on the orders of consumers, and then packs them into delivery, as long as the companies entering the Naver Brand Store put the items in the warehouse. This business is also expected to expand to the smart store division, which accounts for most of e-commerce, rather than some Naver stores.

Naver CEO Han Sung-sook announced the results at the end of last month, “LG Household & Health Care (051900)Starting with this full-filment of CJ Logistics, as of the end of December, eight brands are using the full-filment service,” he said. “For products that provided fast delivery (through full-filment), it was positive in purchase reviews and ratings. Customer satisfaction is increasing, such as a positive reaction.”

The two companies are also considering ways to increase delivery speed by introducing a two-wheeled vehicle delivery network, and improve logistics efficiency by predicting consumer demand and inventory days based on artificial intelligence (AI). An official from CJ Logistics said, “With the plan to expand the scope and scale of our cooperation business with Naver, we are reviewing and testing various shipping improvement plans.”

An industry insider said, “The so-called anti-coupang alliance is being formed one after another, such as the existing e-commerce platforms forming a full-fledged alliance with companies in charge of logistics for fast delivery service.” “As the game of the mus market is expected to change significantly, many companies are focusing their capabilities to improve the delivery system.”