Mesh Korea 'Boorung' Strengthens Foundation with B2B Business in the Second Half of the Year

Four Key B2B Businesses Set for the Second Half of the Year
Quick Commerce · Fulfillment · Food Ingredient Distribution · Logistics IT Consulting

[Asia Economy Reporter Kim Cheol-hyun] Mesh Korea, the operator of 'Boorung,' announced on the 26th that it will focus on promoting its business-to-business (B2B) operations in the second half of the year for solid growth.

Mesh Korea's key focus areas for the second half include four B2B businesses: quick commerce, fulfillment, food ingredient distribution, and logistics IT consulting. Mesh Korea's quick commerce and fulfillment led a 36% year-on-year sales growth in the second quarter. As a result of efforts to attract corporate clients to expand real-time delivery represented by quick commerce, Mesh Korea secured 605 corporate clients, a 55% increase compared to the previous year, and explained that second-quarter real-time delivery sales increased by more than 10% compared to the first quarter. Fulfillment also saw a 167-fold increase in monthly cargo volume within one year of service launch.

Additionally, the company plans to strengthen its efforts in the food ingredient distribution business. The domestic B2B food ingredient distribution market, estimated at about 54 trillion KRW, has been recognized as a sector with structural problems due to complex and fragmented distribution stages causing excessive distribution costs. Mesh Korea plans to reshape the domestic food ingredient distribution market by connecting more than 120,000 registered stores with B2B food ingredient suppliers owned by Boorung.

The logistics IT consulting business is a field where Mesh Korea's technological capabilities are concentrated. This business solves difficulties in digital transformation of logistics and data-driven distribution logistics projects caused by dispersed logistics networks and inadequate systems of companies, using Mesh Korea's logistics IT expertise. The company plans to integrate the logistics networks and systems of companies currently in consultation with Mesh Korea to create new business models and success cases.

To strengthen its focus on key businesses in the second half, Mesh Korea will partially adjust the coverage area of its dawn delivery service. The existing dawn delivery business was promoted with a strategy to expand to provincial areas, but from the second half, it will shift to a strategy focusing on the Seoul area. Following this strategic change, the dawn delivery service in the Gyeonggi area will be transferred to another dawn delivery company, and system integration work to ensure service stability is being discussed. By transferring the delivery volume in the Gyeonggi area, the company aims to achieve economies of scale and cost efficiency.

Choi Byung-jun, head of Mesh Korea's domestic business division, said, "Unlike other delivery agencies, Mesh Korea has pioneered the third-party logistics market for corporate clients with high needs for logistics optimization and cost efficiency." He added, "As corporate clients' demand expands from delivery to fulfillment, distribution support, and logistics IT consulting, we will promote B2B key businesses in the second half to improve the company's profitability and lead solid growth."

This content was produced with the assistance of AI translation services.