Baemin, Coupang Eats: 30-Min K-Beauty Delivery

Food Delivery Platforms Enter K-Beauty Quick Commerce

South Korea's prominent food delivery platforms, Baemin and Coupang Eats, are expanding into K-beauty quick commerce, promising delivery times of approximately 30 minutes. This development intensifies competition within the online beauty sector, where rapid service is becoming a key differentiator.

Baemin, whose parent company is set to be acquired by Uber, recently onboarded Off Beauty, a discount beauty retailer, to its platform. This integration allows Baemin to leverage its existing delivery infrastructure and extensive user base to meet cosmetics demand, aiming to broaden its quick-commerce beauty offerings and provide more competitive pricing to consumers.

Off Beauty's Strategy and Coupang Eats Partnership

Off Beauty operates a warehouse-style model, making about 4,000 beauty products available for delivery from its 30 stores across Seoul, Busan, and other major cities. The retailer maintains low prices by directly sourcing surplus stock, pre-redesign packaging, and items nearing their expiry dates from manufacturers.

This strategy enables Baemin to offer a wider selection of beauty products at reduced costs. Off Beauty initially partnered with Coupang Eats in June, providing free delivery for Coupang's Wow members. The beauty retailer, which currently runs about 50 stores, plans to expand to 100 locations, thereby extending the delivery reach for both app services.

CJ Olive Young's Established Market Position

The entry of these food delivery applications directly challenges CJ Olive Young, South Korea's leading beauty retailer. Olive Young launched its "Oneul Deurim" same-day beauty delivery service in 2018, typically delivering within three hours from its 1,360 stores and urban fulfillment centers. This year, its fastest delivery tier averaged 55 minutes.

Last year, Oneul Deurim processed 19.35 million deliveries, accounting for nearly half of Olive Young's total shipments in the first half of the current year. Despite its established service, the new 30-minute delivery promise from competitors presents a significant speed challenge.

Implications for K-Beauty Retailers

The escalating competition in K-beauty delivery reflects a broader shift in consumer expectations, where convenience and speed are paramount. Online sales represented 41.4 percent of Korean cosmetics sales last year, highlighting the importance of digital channels.

CJ Olive Young reported 2.94 trillion won ($2.2 billion) in sales during the first half of the year, securing a 21.5 percent share of Korea's 13.72 trillion won beauty retail market.

For brands and retailers in Asia, this trend suggests that integrating with quick-commerce platforms or enhancing existing rapid delivery capabilities will be crucial for maintaining market share and reaching customers who prioritize immediate gratification.