Busan 'MFC Haeundae' Launches... First Expansion Outside Seoul Metropolitan Area
Onoedream Delivery and Nearby Store Inventory Storage
"Expanding MFC to Major Metropolitan Cities and Regional Small and Medium Cities"
CJ Olive Young, a health and beauty (H&B) specialty store under the CJ Group, is expanding its urban logistics hub (Micro Fulfillment Center·MFC) network to the Yeongnam region. Through this, it plans to enhance the competitiveness of its quick commerce service, 'Oneul Dream' (Today’s Dream).
Olive Young announced on the 8th that it has completed the pilot operation of 'MFC Haeundae,' which opened last month in Haeundae-gu, Busan Metropolitan City, and will begin full-scale operation this month. This is the first time an MFC is operated in a non-capital region.
An employee at Olive Young MFC Seongnam branch is inspecting products sorted by the automatic sorter. [Photo by CJ Olive Young]
Oneul Dream functions as a logistics warehouse where Olive Young stores ship items ordered by customers, but in areas where an MFC is established, the MFC takes on this role instead of the stores. Olive Young explained that this helps reduce the workload of nearby store employees.
MFC Haeundae covers a total area of 992㎡ (approximately 300 pyeong) and handles Oneul Dream deliveries and inventory storage for nearby stores in the eastern Busan areas of ▲Dongnae-gu ▲Suyeong-gu ▲Yeonje-gu ▲Haeundae-gu. During peak online order periods like the 'Ollyoung Sale,' it can process up to 6,000 deliveries per day.
MFC Haeundae has also introduced automation equipment to reduce manual labor for workers. Representative examples include an 'automatic sorter' that automatically sorts products by customer order when items are placed at the machine entrance, and an automatic packaging machine called 'Auto Bagger' that seals products in biodegradable plastic packaging and attaches shipping labels.
Olive Young plans to open 'MFC Sasang' in August to handle part of the Oneul Dream volume in the western Busan area.
Olive Young launched the Oneul Dream service in 2018, utilizing stores as logistics hubs to deliver ordered products on the same day. With the growth of the non-face-to-face delivery service market due to the COVID-19 pandemic, Oneul Dream’s sales have grown more than fivefold annually on average from 2019 to 2023.
Olive Young intends to strengthen its quick commerce competitiveness by expanding MFCs to major metropolitan cities and small and medium-sized local cities. It plans to gradually establish more than 20 MFCs by 2025 to handle about half of all online mall orders. Currently, Olive Young operates a total of 12 MFCs.
A CJ Olive Young official said, "Through urban logistics hubs (MFCs) and the advancement of the nationwide store network, we will provide a positive purchasing experience to customers who use Olive Young both online and offline," adding, "We will continue to lead the same-day delivery paradigm to offer differentiated omnichannel services focused on customer needs and convenience."
Meanwhile, Oneul Dream is a quick commerce service that allows customers to receive products ordered on the same day via Olive Young’s online mall and mobile app within an average of one hour. Free delivery is provided for purchases over 30,000 KRW based on payment amount, and the service operates seven days a week regardless of weekends or holidays. Products ordered between 10 a.m. and 8 p.m. are delivered at the customer’s desired time slot.
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