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CJ Logistics loses market share as Coupang surges

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By Kim Jae-heun
  • Published KST
  • Updated KST

CJ Logistics delivery worker hands over a parcel to customer in Seoul, March 28. Korea Times file

By Kim Jae-heun

CJ Logistics, the country's largest logistics firm, has been losing market share as Coupang's logistic unit caters to more and more online shoppers, according to industry officials, Thursday.

CJ has seen its market share decline since 2021 when Korea's largest e-commerce firm established Coupang Logistics Service (CLS), which was registered as its proprietary courier business with the Ministry of Land, Infrastructure, and Transport.

CJ's market share fell from 50.1 percent in 2020 to 48.3 percent in 2021, 45.7 percent in 2022 and 44.3 percent, last year, according to the logistics company.

Even though Coupang CLS declined to disclose its market share, it is said to be the second-largest delivery firm, according to many industry officials. In 2022, the number of parcels delivered by Coupang CLS reached 1.3 billion, which accounts for 36.1 percent of the total 3.61 billion parcels delivered in the country.

“We saw our market share fall slightly (in the first half of this year) due to our efforts to improve profitability. After calculating the cost efficiency of some businesses, we decided to give up those that display low returns,” a CJ Logistics official said.

“Also, we deliver multiple items in bundles if they are purchased with the same seller or fall under the same product category. However, in the case of one company, I believe they deliver one item in a plastic bag individually, which increases the number of parcel shipments.”

Coupang's delivery trucks are parked at the company's logistics center in Seoul, in this 2021 file photo. Yonhap

Coupang CLS's logistics business performance in the second half of this year is likely to surpass that of last year. Its product commerce sector sales in the second quarter of this year soared 15 percent to $5.68 billion (7.62 trillion won). Coupang's product commerce includes various overnight delivery services such as Rocket Delivery, Rocket Fresh and Market Place.