Summary

South Korea's quick commerce business has evolved as a dynamic and constantly expanding sector, reflecting the country's superior technical landscape and strong consumer expectations for fast, convenient delivery services. The South Korean rapid commerce market originated from traditional e-commerce, with early entrants such as Coupang and Gmarket pioneering online shopping. However, the market surged with the introduction of specific rapid commerce platforms and the increase in smartphone adoption. Companies like Baedal Minjok (Baemin) and Yogiyo arose, using technology to provide express deliveries. This market's growth has been fuelled by technological improvements such as advanced routing algorithms, real-time inventory management, and user-friendly mobile apps. Also, the growth of dark stores and micro-fulfillment centres has made delivery speedier. Investments from venture capital firms and tech behemoths have also fuelled growth and innovation. For example, SoftBank made large investments in Coupang, propelling its growth and technology breakthroughs. This shift in consumer behaviour has lasted after the epidemic, indicating long-term shifts in shopping habits and a bright future for the rapid commerce business. Also, the epidemic prompted a surge in contactless deliveries, with platforms implementing safeguards to ensure the safety of both clients and delivery people. Quick commerce enterprises in South Korea must follow a number of regulations, including food safety standards (Ministry of Food and Drug Safety), labour laws, and data privacy guidelines (Personal Information Protection Act). They must also follow local restrictions regarding delivery services and parking. Also, enterprises must follow e-commerce regulations and maintain fair competition, as defined by the Korea Fair Trade Commission.

According to the research report, "South Korea Quick Commerce Market Outlook, 2029," published by Bonafide Research, the South Korea quick commerce market is anticipated to add to more than USD 5 Billion by 2024–29. It is critical in solving the issues of dense metropolitan surroundings, hectic lifestyles, and a tech-savvy populace, making it an appealing offer for both consumers and enterprises. Also, the market stands out for its job creation and contribution to the digital economy. The quick commerce segment, in particular, is thriving because to its promise of rapid delivery, frequently within minutes. This expansion is fuelled by expanding smartphone penetration, improved internet infrastructure, and increased use of digital payments. Several main trends are influencing the market. For starters, there is a growing desire for ultra-fast deliveries, with players advertising delivery times of 30 minutes or shorter. Also, there is an increasing emphasis on sustainability, with customers preferring environmentally friendly packaging and delivery methods. The concept of "ghost kitchens," which prepare food just for delivery, is also gaining popularity. Also, the industry is experiencing a surge in the use of new technologies such as AI for demand forecasting and route optimisation, autonomous delivery via drones and robots, and data analytics for personalised marketing. Local and foreign enterprises are key players in South Korea's rapid commerce market. Coupang, a local e-commerce behemoth, is a major player, offering a diverse choice of products with quick delivery via its "Rocket Delivery" service. Woowa Brothers' Baedal Minjok (Baemin) is another key player in the express meal delivery market. Other notable players include Yogiyo, Market Kurly, and Gmarket. Coupang partnered with local stores and brands to broaden its product offers. Baemin worked with worldwide food companies such as McDonald's and KFC to improve its delivery services. Market Kurly partnered with traditional markets to provide fresh vegetables with rapid delivery. Coupang teamed with LG Uplus to improve its delivery services by leveraging new technologies such as AI and IoT.

The range of products offered in South Korea's rapid commerce industry includes groceries, stationary items, personal care products, and electronics, all of which serve to varied customer demands and contribute to the market's overall dynamism. Groceries are the most popular segment in South Korea's rapid commerce market. This area contains a diverse range of products, such as fresh vegetables, dairy, meats, and pantry necessities. This area is especially important due to the strong demand for groceries, which is driven by the need for convenience and the frequency with which they are purchased. Coupang, Market Kurly, and SSG.com are some of the key players. Coupang innovates with its "Rocket Fresh" service, which provides quick grocery deliveries with a focus on fresh, high-quality products. Market Kurly distinguishes itself with its "Kurly's Fresh" service, which promises deliveries for orders ordered by midnight. Stationary items are a tiny but rising component of the rapid commerce market. As remote work and online learning have grown in popularity, so has the demand for stationary products such as office supplies and instructional resources. Startups such as 11st, which previously concentrated on e-commerce, have expanded their product offers to include stationery items, capitalising on rising demand. Personal care items, including as toiletries, skincare products, and over-the-counter pharmaceuticals, are also popular in South Korea's rapid commerce market. The ease of having these products delivered swiftly appeals to busy consumers and those who require rapid access to personal care essentials. Companies such as Olive Young and Lalavla provide rapid delivery for personal care products. Also, marketplaces such as Coupang and Gmarket have specific categories for these products.

In South Korea's rapid commerce market, payment methods such as cash on delivery (COD) and online payments are crucial, responding to varied consumer preferences while also contributing to the sector's growth and efficiency. Online payment is the most popular payment method in South Korea's rapid commerce market, reflecting the country's advanced digital infrastructure and widespread smartphone use. Credit and debit cards, digital wallets such as KakaoPay and Naver Pay, and direct bank transfers are all acceptable forms of payment online. Naver Pay innovates by integrating with other Naver services, such as Naver Shopping and Naver Blog, to offer users a seamless and integrated payment experience. Cash on delivery (COD) remains an important payment method in South Korea, however it is less popular than online payments. COD caters to customers who want to pay in cash upon delivery or who are wary of internet transactions. However, some platforms continue to offer COD to users who want to pay in cash or who do not have access to digital payment options. Key players offering COD include Baedal Minjok (Baemin) and Yogiyo, but they urge consumers to use online payment methods.

In South Korea's fast-paced commerce sector, the operational models of application-based, hybrid, and website-based approaches all have a big impact on how firms connect with customers and handle delivery. Application-Based Operation is the dominant approach in South Korea's fast-paced commerce industry. Businesses use dedicated mobile applications to process orders, manage inventory, and control delivery operations. It's especially enticing to tech-savvy customers and those who want to shop on the go. Coupang, Baedal Minjok (Baemin), and Yogiyo are among the market leaders in this segment. Coupang, for example, innovates with its user-friendly interface and efficient delivery network, providing a diverse choice of products with rapid delivery. Baemin distinguishes out for its comprehensive food delivery services and excellent app capabilities. Hybrid operation incorporates features of both application- and website-based approaches, giving customers numerous ways to interact with the service. This concept is important because it enables a variety of user preferences, allowing clients to place orders via either a mobile app or a website. Gmarket, 11st, and Lotte ON are among the key players that have adopted this strategy. Gmarket stands out for its seamlessly integrated online and offline experiences, including in-store pickup and home delivery. Lotte ON offers a unified shopping experience across its app and website, with extra services such as Lotte ON Delivery for rapid delivery. Website-Based Operations refers to firms that primarily manage orders and customer interactions through their websites. While this paradigm is less prevalent than application-based operations, it is nonetheless vital, particularly for businesses that value precise product information and a larger web presence.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Quick Commerce market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Food & Groceries
• Stationary
• Personal Care Items
• Small Electronics & Accessories
• Others (Pets, alcohol, gifts & flowers, Medicines)

By Payment Mode
• Cash on Delivery
• Online

By Technology
• Application Based Operation
• Hybrid Operation
• Website Based Operation

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Quick Commerce industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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Table of Contents

Table of Contents

1. Executive Summary
2. Market Structure
2.1. Market Considerate
2.2. Assumptions
2.3. Limitations
2.4. Abbreviations
2.5. Sources
2.6. Definitions
2.7. Geography
3. Research Methodology
3.1. Secondary Research
3.2. Primary Data Collection
3.3. Market Formation & Validation
3.4. Report Writing, Quality Check & Delivery
4. South Korea Macro Economic Indicators
5. Market Dynamics
5.1. Market Drivers & Opportunities
5.2. Market Restraints & Challenges
5.3. Market Trends
5.3.1. XXXX
5.3.2. XXXX
5.3.3. XXXX
5.3.4. XXXX
5.3.5. XXXX
5.4. Covid-19 Effect
5.5. Supply chain Analysis
5.6. Policy & Regulatory Framework
5.7. Industry Experts Views
6. South Korea Quick Commerce Market Overview
6.1. Market Size By Value
6.2. Market Size and Forecast, By Product Type
6.3. Market Size and Forecast, By Payment Mode
6.4. Market Size and Forecast, By Technology
6.5. Market Size and Forecast, By Region
7. South Korea Quick Commerce Market Segmentations
7.1. South Korea Quick Commerce Market, By Product Type
7.1.1. South Korea Quick Commerce Market Size, By Food & Groceries, 2018-2029
7.1.2. South Korea Quick Commerce Market Size, By Stationary, 2018-2029
7.1.3. South Korea Quick Commerce Market Size, By Personal Care Items, 2018-2029
7.1.4. South Korea Quick Commerce Market Size, By Small Electronics & Accessories, 2018-2029
7.1.5. South Korea Quick Commerce Market Size, By Others, 2018-2029
7.2. South Korea Quick Commerce Market, By Payment Mode
7.2.1. South Korea Quick Commerce Market Size, By Cash on Delivery, 2018-2029
7.2.2. South Korea Quick Commerce Market Size, By Online, 2018-2029
7.3. South Korea Quick Commerce Market, By Technology
7.3.1. South Korea Quick Commerce Market Size, By Application Based Operation, 2018-2029
7.3.2. South Korea Quick Commerce Market Size, By Hybrid Operation, 2018-2029
7.3.3. South Korea Quick Commerce Market Size, By Website Based Operation, 2018-2029
7.4. South Korea Quick Commerce Market, By Region
7.4.1. South Korea Quick Commerce Market Size, By North, 2018-2029
7.4.2. South Korea Quick Commerce Market Size, By East, 2018-2029
7.4.3. South Korea Quick Commerce Market Size, By West, 2018-2029
7.4.4. South Korea Quick Commerce Market Size, By South, 2018-2029
8. South Korea Quick Commerce Market Opportunity Assessment
8.1. By Product Type, 2024 to 2029
8.2. By Payment Mode, 2024 to 2029
8.3. By Technology, 2024 to 2029
8.4. By Region, 2024 to 2029
9. Competitive Landscape
9.1. Porter's Five Forces
9.2. Company Profile
9.2.1. Company 1
9.2.1.1. Company Snapshot
9.2.1.2. Company Overview
9.2.1.3. Financial Highlights
9.2.1.4. Geographic Insights
9.2.1.5. Business Segment & Performance
9.2.1.6. Product Portfolio
9.2.1.7. Key Executives
9.2.1.8. Strategic Moves & Developments
9.2.2. Company 2
9.2.3. Company 3
9.2.4. Company 4
9.2.5. Company 5
9.2.6. Company 6
9.2.7. Company 7
9.2.8. Company 8
10. Strategic Recommendations
11. Disclaimer

List of Figures

Figure 1: South Korea Quick Commerce Market Size By Value (2018, 2023 & 2029F) (in USD Million)
Figure 2: Market Attractiveness Index, By Product Type
Figure 3: Market Attractiveness Index, By Payment Mode
Figure 4: Market Attractiveness Index, By Technology
Figure 5: Market Attractiveness Index, By Region
Figure 6: Porter's Five Forces of South Korea Quick Commerce Market

List of Tables

Table 1: Influencing Factors for Quick Commerce Market, 2023
Table 2: South Korea Quick Commerce Market Size and Forecast, By Product Type (2018 to 2029F) (In USD Million)
Table 3: South Korea Quick Commerce Market Size and Forecast, By Payment Mode (2018 to 2029F) (In USD Million)
Table 4: South Korea Quick Commerce Market Size and Forecast, By Technology (2018 to 2029F) (In USD Million)
Table 5: South Korea Quick Commerce Market Size and Forecast, By Region (2018 to 2029F) (In USD Million)
Table 6: South Korea Quick Commerce Market Size of Food & Groceries (2018 to 2029) in USD Million
Table 7: South Korea Quick Commerce Market Size of Stationary (2018 to 2029) in USD Million
Table 8: South Korea Quick Commerce Market Size of Personal Care Items (2018 to 2029) in USD Million
Table 9: South Korea Quick Commerce Market Size of Small Electronics & Accessories (2018 to 2029) in USD Million
Table 10: South Korea Quick Commerce Market Size of Others (2018 to 2029) in USD Million
Table 11: South Korea Quick Commerce Market Size of Cash on Delivery (2018 to 2029) in USD Million
Table 12: South Korea Quick Commerce Market Size of Online (2018 to 2029) in USD Million
Table 13: South Korea Quick Commerce Market Size of Application Based Operation (2018 to 2029) in USD Million
Table 14: South Korea Quick Commerce Market Size of Hybrid Operation (2018 to 2029) in USD Million
Table 15: South Korea Quick Commerce Market Size of Website Based Operation (2018 to 2029) in USD Million
Table 16: South Korea Quick Commerce Market Size of North (2018 to 2029) in USD Million
Table 17: South Korea Quick Commerce Market Size of East (2018 to 2029) in USD Million
Table 18: South Korea Quick Commerce Market Size of West (2018 to 2029) in USD Million
Table 19: South Korea Quick Commerce Market Size of South (2018 to 2029) in USD Million