South Korean food delivery platforms Baemin and Coupang Eats are now offering a 30-minute delivery service for discount cosmetics. By leveraging local retail networks, they aim to surpass the speed of market leader CJ Olive Young.

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Recently, Baemin partnered with Off Beauty, a warehouse outlet chain, to expand its offerings. This collaboration includes around 4,000 products dispatched from 30 outlets in cities like Seoul and Busan, providing customers with faster deliveries compared to Olive Young’s average express time of 55 minutes.

The Off Beauty model involves sourcing surplus stock, including products in pre-redesign packaging and near-expiry items, from brand owners, allowing the outlet to maintain lower prices. This results in a wide array of discounted goods available for delivery apps.

In June, Coupang Eats added Off Beauty to its platform, offering free delivery for users subscribed to Coupang Wow. Currently, Off Beauty operates about 50 stores but aims to expand to 100 locations across South Korea, enhancing pickup options for couriers in metropolitan areas.

Delivery platforms often experience dips in orders between lunch and dinner, but cosmetics sales remain steady throughout the day, filling demand gaps. Moreover, cosmetic products, being lightweight, are easier to handle than meals or groceries, simplifying logistics for drivers.

According to government data, online sales accounted for 41.4 percent of South Korea's cosmetics market last year. CJ Olive Young generated 2.94 trillion won ($2.2 billion) in revenue in the first half of the year, capturing a 21.5 percent share of the 13.72 trillion won beauty market.

Olive Young's three-hour delivery service, launched in 2018, facilitated 19.35 million orders last year and contributed significantly to the company's overall shipment volume.

The entrance of rapid 30-minute delivery shifts the competitive landscape for beauty retailers. While Olive Young emphasizes curated products and personalized advice, delivery services are banking on affordability and speedy service to attract impulsive buyers.

Beyond food delivery, new entrants, such as online grocer Market Kurly and discount store Daiso, are also targeting beauty sales in Korea, intensifying competition. The success of Baemin and Coupang Eats in expanding 30-minute cosmetics delivery to more areas will depend on Off Beauty achieving its goal of 100 stores.