Delivery services once limited to restaurant meals are expanding into ready-to-eat foods, fresh produce, and household goods. Convenience stores, large supermarkets, and even Daiso have entered the field. Delivery has now become a service category of its own known as "quick commerce." It is also the segment showing the most notable growth in Korea's online commerce market.
Lee Seok-hyung, a managing director and partner overseeing the commerce industry at Boston Consulting Group (BCG) Korea, said in a recent interview with The Seoul Economic Daily that Korea's quick commerce market, which emerged about five years ago, has reached 4.4 trillion to 5 trillion won in transaction volume. "It has the potential to grow to around 15 trillion won, three times the current level," he said.
One basis for Lee's outlook is trends in overseas markets. He analyzed that quick commerce develops in countries with urban cultures that have high consumer density. According to BCG, the largest market in the world is China at about 134 trillion won, accounting for 5.6% of total e-commerce. India and the United Kingdom follow. "Despite having the right conditions, Korea's share within e-commerce is low at 1.7%, leaving significant room for growth," Lee said. "Even if it grows only to China's level, it could become three to four times larger than it is now."
He cited "immediacy" as the difference between quick commerce and conventional fast delivery. Even dawn delivery is simply fast delivery rather than quick commerce if purchased according to a plan made in advance. "More consumers are buying small quantities when needed, rather than shopping for groceries in advance as in the past," Lee said. "The spread of quick commerce itself means the creation of new demand."
In terms of product categories, he named cosmetics, pharmaceuticals, alcoholic beverages, and pet supplies as promising sectors. "These are items that disrupt your activities if you find you don't have them," Lee said. "In areas where immediacy demand is concentrated, quick commerce penetration relative to total e-commerce could exceed double digits." He noted that beauty products in particular suit quick commerce, which centers on small orders, because of their high unit prices.
Although various retailers are entering the field, he predicted that delivery platforms will be the foundational operators of quick commerce. This is because they meet three requirements: customer touchpoints, "last-mile" delivery capabilities, and profitability. "Retail, fashion, and beauty platforms will make attempts, but they lag in fulfillment and delivery competitiveness, so collaborating with delivery platforms is a better strategy than direct investment," he advised.
He assessed that delivery platforms could later evolve into "hyper-local services." The explanation is that they will serve as regional super apps that bring in all types of stores and address immediacy and convenience. "Retailers can still create new demand through quick commerce," Lee said, while emphasizing that "research from the customer's perspective, such as product composition, is needed." He added, "We will support stakeholders including retailers, platforms, franchisees, consumers, and riders so they can enjoy the fruits of growth."
