Olive Young doubles down on q-commerce capabilities to expand same-day delivery services

The company said it plans to gradually build more than 20 micro fulfilment centres (MFCs) by 2025 as part of plans to “strengthen omnichannel competitiveness”.

It estimated that they will handle approximately half of online orders and widen the company’s same-day delivery reach from major metropolitan cities to small and medium-sized cities.

It currently has a total of 12 MFCs and the latest was opened in Haeundae, Busan, which began full operations in July.

The 992-square metre facility will service the eastern Busan area and can handle up to 6,000 deliveries a day.

It is also equipped with automated equipment has also been introduced to reduce manual work, such as an automatic sorter that categorises items for each customer order and an auto bagger that seals items in biodegradable packaging and attaches invoices.

This was the first MFC opened outside of Seoul and Gyeonggi areas.

In August, the firm expects to open another MFC to serve the western Busan area as well.

Olive Young said it planned to expand MFCs to “major metropolitan cities and local small and medium-sized cities and strengthen our competitiveness in quick commerce nationwide”.

Quick commerce, often known as q-commerce, is a form of e-commerce that focuses on the rapid delivery of small orders. With this model, consumers can generally expect delivery within one hour of placing an order, catering to their increasing need for fast and convenient access to groceries or ready-to-eat meals.

Instant delivery demand

Olive Young’s same-day delivery service, Today’s Dream began in late 2018 and offered delivery within three hours.

This service was expanded in the wake of the COVID-19 pandemic and demand has increased steadily. According to the firm, Today’s Dream has grown five times from 2019 to 2023.

Today’s Dream now offers delivery within one hour with Olive Young online and mobile application orders. It operates seven days a week, regardless of holidays.

Olive Young is part of the South Korean conglomerate CJ Group, which also owns CJ Logistics, one of the country’s top delivery providers.

The firm’s plans to strengthen its quick commerce capabilities come as demand for q-commerce services rise in Korea.

E-commerce players like Coupang and Kurly have also begun to reinforce their q-commerce capabilities.

In June, Kurly launched Kurly Now, which offers deliveries within one hour across 15 categories, including daily necessities and cosmetics. The service is available seven days a week and consumers can place orders between 9am and 10pm with a minimum purchase of 15,000 (US$11).

Eco-deliveries

On July 22, Olive Young announced that it signed a memorandum of understanding (MOU) to join its GoGreen Plus service, which reduces carbon emissions by using sustainable aviation fuel.

GoGreen Plus was launched in 2023. According to DHL, it “reduces 30% of the carbon emissions associated with your shipments” through its use of sustainable aviation fuel instead of traditional fuel.

This would affect Olive Young Global, the firm’s cross-border e-comemerce platform which ships K-beauty products to around 150 countries globally.