CJ Logistics Targets New Market for 'Cross-Border Parcel Delivery'... "Pursuing Infrastructure Expansion"

[Asia Economy Reporter Hyunseok Yoo] CJ Logistics is accelerating its market penetration by expanding the iHerb Global Distribution Center (GDC) and International Courier Center (ICC) within the Incheon Airport Free Trade Zone, and by actively launching direct purchase logistics for a globally renowned e-commerce company as well as the operation business of the Asia-Pacific region GDC.

CJ Logistics announced on the 13th that it is promoting infrastructure expansion to fully enter the cross-border e-commerce (CBE) logistics market.

'CBE logistics' is a concept that includes not only customs clearance and international shipping of cross-border e-commerce products such as overseas direct purchase and reverse direct purchase but also fulfillment services including product storage, inventory management, and packaging. It also includes the operation business of the 'Global Distribution Center (GDC)' of global online shopping malls, which has recently attracted attention.

To strengthen its CBE logistics capabilities, CJ Logistics is expanding the GDC of iHerb, the world's largest health food shopping mall currently in operation, and is also planning to establish new overseas facilities. The iHerb GDC, which opened in 2018, currently handles products ordered by consumers in Asian regions such as Hong Kong, Japan, and Singapore, covering a total floor area of 14,000㎡ (4,200 pyeong) and processing 20,000 boxes per day. CJ Logistics plans to expand the iHerb GDC by the first quarter of next year and install the state-of-the-art logistics robot system 'AutoStore' to increase handling capacity to 30,000 boxes per day.

Infrastructure related to overseas direct purchase and reverse direct purchase will also be expanded. CJ Logistics, the number one company in overseas direct purchase delivery market share, plans to increase its processing capacity to 60,000 boxes per day by the end of the year by adding facilities in addition to the Incheon International Courier Center (ICC), which can handle 35,000 direct purchase boxes per day.

In particular, CJ Logistics recently won and is operating the domestic direct purchase product delivery business for a globally renowned e-commerce company. It has also begun full-scale preparations for the Asia-Pacific region GDC operation business.

Kang Byung-gu, head of CJ Logistics' Global Division, said, "Global logistics companies such as DHL, UPS, and DB Schenker are also expanding investments to secure a leading position in the CBE logistics market," adding, "We will secure a super-gap capability to lead the Asia-Pacific CBE logistics market and contribute to the expansion of South Korea's logistics territory."

CJ Logistics provides CBE logistics services in seven countries including South Korea, the United States, China, Japan, Malaysia, Singapore, and the Philippines, with related sales reaching 220 billion KRW last year alone.

According to the Korea Customs Service, overseas direct purchases in South Korea reached 88.38 million cases last year, a 2.7-fold increase compared to 2018. Reverse direct purchases grew 4.2 times to 40.49 million cases. According to Transport Intelligence, a global logistics research institute, the worldwide CBE logistics market was estimated at approximately 100 trillion KRW in 2021 and is expected to grow at an average annual rate of 12.9% to 176 trillion KRW by 2026.

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