Dongdaemun Fashion Startups Also Join the 'Delivery War'

Integration of Big Data and AI Technologies in Fashion Shopping Platform
24-Hour Dispatch Service for Next-Day Delivery

On the 16th, employees are busy working at the Brandy Dongdaemun Fulfillment Center in Jung-gu, Seoul. Photo by Mun Ho-nam munonam@

#Office worker Kim Jisoo (alias) found herself troubled from the morning due to a suddenly scheduled gathering. It was an occasion that required attention to attire, but she had no suitable clothes to wear. There was no time to go shopping, and even ordering online often took several days for delivery due to size and other product-specific factors. Hoping for a solution, Kim accessed shopping applications (apps) provided by fashion startups and was able to resolve her dilemma. These platforms, which host numerous clothing malls including those from Dongdaemun, not only allowed checking the estimated delivery dates but also offered products available for same-day delivery.

Startups based in the Dongdaemun fashion market have jumped into the 'delivery war.' Competition that was previously centered around fresh food in the e-commerce industry now seems to have shifted to the realm of 'clothing.' It is analyzed that Coupang’s expansion into fashion this year, leveraging its strength in fast delivery, has influenced this trend.

According to fashion tech company Croquis.com on the 16th, shopping malls listed on the women's shopping app 'Zigzag' take an average of 1.2 business days from shipment to delivery completion. 81% of products are shipped on the same day or within one day, meaning many items can be received the day after ordering. Zigzag, launched in 2015 by Croquis.com to gather women's online shopping malls handling Dongdaemun clothing, surpassed a cumulative transaction amount of 2 trillion KRW as of the first half of this year and hosts over 3,700 shopping malls. In the past, the time taken for shipment and delivery varied by seller, with many cases taking three to four days or more. The integration of innovative startups’ technology is raising delivery speeds, according to the evaluations of participating sellers.

A representative example is the 'delivery prediction feature' recently introduced by Zigzag. This feature analyzes about 20 million order big data points affecting delivery and informs customers of the time required from order to shipment, allowing them to purchase according to their situation. It shows the probability of the time needed until shipment by analyzing the preparation period, and provides detailed information about the preparation period along with delivery fees and courier company details. Seo Jeong-hoon, CEO of Croquis.com, said, "The delivery prediction feature will not only enhance user convenience but also reduce sellers’ delivery response tasks," adding, "In the long term, we expect an overall reduction in shipment times."

On the 16th, employees are busy working at Brandy Dongdaemun Fulfillment Center in Jung-gu, Seoul. Photo by Mo Honam munonam@

Another fashion platform hosting Dongdaemun shopping malls, 'Brandy,' has launched a 'Same-Day Delivery' service that allows customers to receive clothing products on the same day. After a four-month pilot test starting at the end of May, the official service was recently launched. The core of 'Same-Day Delivery' is that products ordered in the morning can be received within half a day via quick delivery service. Brandy explained that they upgraded their artificial intelligence (AI) demand forecasting technology based on purchase data accumulated during the test period.

Brandy plans to expand the number of 'Same-Day Delivery' products to 100,000 by the end of the year and extend the service area nationwide. Seo Jeong-min, CEO of Brandy, stated, "Through same-day delivery, which existing fashion platforms have not attempted, we have confirmed that 'last mile delivery' within half a day is possible in the domestic fashion retail market."

The reason fashion startups are focusing on delivery is also analyzed to be influenced by Coupang’s launch of fashion product sales this year. Coupang’s fashion-specialized platform 'C.Avenue,' opened in April this year, offers carefully selected fashion brand products, and 'Rocket Wow' members can receive products by 7 a.m. the next day after ordering. An industry insider said, "Consumers who have experienced Coupang’s logistics service have growing demands for fast delivery," adding, "Accordingly, various fashion tech startups are concentrating their technological capabilities on reducing the time taken for shipment and delivery."