Taking a Look Around 'Bureung MFC Gangnam 1st Branch'
#.Located in Nonhyeon-dong, Gangnam-gu, Seoul, the ‘Vroong Micro-Fulfillment Center (MFC)’ Gangnam Branch No. 1. On the 14th, a live broadcast called ‘Quick-Live!’ created through a collaboration between Interpark and Mesh Korea, the operator of Vroong, was underway here. From 11 a.m. for 40 minutes, ‘Ice Watermelon 5~6kg’ products were sold, and when customers in the three Gangnam districts?Gangnam-gu, Seocho-gu, and Songpa-gu?watched the broadcast in real time and placed orders, delivery started immediately. In fact, more than 100 watermelons were sold during the broadcast that day alone, and around 11:40 a.m., the watermelons loaded onto an electric vehicle departed from the MFC and were delivered to customers in Nonhyeon-dong, Cheongdam-dong, and other areas about 10 minutes later.
The ‘quick commerce’ battle, where customers can receive products within a few hours immediately after ordering, beyond dawn delivery and same-day delivery, is intensifying mainly in the three Gangnam districts of Seoul. In this area with concentrated delivery demand, distribution and logistics companies are competing in ‘last-mile’ delivery to provide customers with faster and more convenient product delivery. The frontline of this competition is the MFC, a logistics center located in the heart of the densely populated urban area. Mesh Korea announced plans to increase the number of MFCs to 50 within the metropolitan area by the end of the year, and Barogo also plans to open a total of 25 MFCs mainly in the metropolitan area. We took a direct look at Vroong MFC Gangnam Branch No. 1, one of the MFC competition sites in the three Gangnam districts.
At Burung MFC Gangnam Branch No. 1, watermelons sold through live commerce are being loaded onto delivery vehicles.
◆Watermelon ordered while watching live broadcast arrives at the door in 10 minutes=Vroong MFC Gangnam Branch No. 1 near Hakdong Station in Seoul began full-scale operation in April and has a dedicated area of about 400㎡ equipped with a cold chain system that allows storage of meal kits and fresh food. According to Mesh Korea, the maximum daily delivery volume handled here is currently up to 400 orders, with five delivery drivers always on standby, and additional personnel are deployed when the volume is high. Center Manager Oh Seong-ho explained, "The delivery volume is continuously increasing."
Currently, this space is providing real-time delivery service for ‘Talk Deal Fresh Beta’ within Kakao Shopping, launched jointly by Kakao Commerce and Fresh Easy. If you order Fresh Easy’s ready meals between 7 a.m. and 10 a.m., customers in Gangnam-gu, Seocho-gu, and Songpa-gu can receive them before noon on the same day. This speed is possible because once an order is placed, the product waiting here is immediately taken out and the delivery driver departs. During the live commerce event held on the 14th, deliveries in the three Gangnam districts were completed within a maximum of two hours after ordering, and deliveries to areas near the MFC were completed just minutes after departure.
Mesh Korea’s strategy is to use AI data-based MFCs as the foundation for building a precise logistics network within the city. In particular, following the recent opening of the MFC Songpa branch, they plan to open MFCs in Seocho and other central Seoul and major areas in the second half of this year, aiming to expand to 50 locations in Seoul and the metropolitan area by the end of the year and eventually to about 300 nationwide.
◆Barogo also joins the MFC competition=The reason logistics platform companies are focusing on MFCs is that they can strengthen delivery competitiveness in the rapidly growing live commerce and other real-time shopping channel markets. Through MFC expansion, they plan to diversify delivery categories, which have been mainly food and beverages, into fashion, miscellaneous goods, bakery, cosmetics, and more.
Not only Mesh Korea but also Barogo has decided to promote the MFC business to create logistics synergy with strategic investors such as 11st and CJ Group. Barogo plans to open a total of 25 MFCs mainly in the metropolitan area centered on the three Gangnam districts. They are also considering the possibility of providing delivery services linked with four-wheel logistics from MFCs. An industry insider said, "Logistics solution companies will diversify their business portfolios by expanding service areas from existing food delivery to fresh food and non-food product delivery through the MFC business."
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