Conglomerates Advance on Home Delivery Business

Article excerpt

Conglomerates are jumping into the home delivery business one after another with the e-commerce market expanding.

Their advance on the market is expected to create tough competition with current leaders Korean Express, Hanjin Transportation and Hyundai Logistics.

Cheil Jedang, Samsung Corp. and Hansol CSN have already established a presence in the sector and LG International Corp. and Daesang will soon follow suit, business sources said.

CJ Global Logistics Service (GLS), a subsidiary of Cheil Jedang, whose purchase of Delivery World at the end of last year precluded its entry, has emerged as a major competitor of the top three delivery companies as Cheil took over home shopping cable TV channel, 39 Shopping, last week.

CJ GLS has 110 regional offices and will add 30 more as well as expand their number of delivery vehicles from the current 500, a company spokesman said.

Samsung Corp. recently started its home delivery business by buying a 70 percent share of delivery company HTH.

Samsung has installed laptop computers in their delivery vehicles to facilitate dispatches and allow customers to change delivery time. …