CJ Korex inks deal with LazadaCJ Group’s logistics subsidiary, CJ Korea Express, has signed a partnership with Lazada Group, the largest e-commerce platform operator in Southeast Asia, to deliver goods from Korea to that region, part of a bid to expand its overseas presence.
“We are currently the No. 1 logistics company in Korea, and we aim to become one of the top five companies in the world by 2020,” Park Geun-tae, president and CEO of CJ Korea Express, said during a signing ceremony at the company’s human resources center in Jung District, central Seoul.
CJ Korea Express will handle the delivery of goods from Korea to six countries in Southeast Asia where Lazada Group does business: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. The logistics company expects to reach roughly 560 million people in the six countries.
“Currently, the cross-border volume of goods from Korea accounts for about 5 percent of the total volume traded through our platform,” said James Chang, chief operations officer of Lazada Crossborder, “but considering the growing needs of customer demand in the Southeast Asian region, we are preparing for operations that could cater to three to four times increased demand.”
With the popularity of Korean pop music and dramas in Southeast Asia, the regional market is seen as the next big cash cow for Korean retailers. This is expected to increase demand for logistics connecting Korea to countries in the region, and CJ Korea Express has been jumping on the trend.
Prior to the deal, the company has already delivered 700,000 packages ordered through Lazada’s platform from China to Singapore, Thailand and Indonesia since last year.
Earlier this month, the Korean company also acquired shares of Malaysia-based Century Logistics. The combination of CJ’s existing logistics operations in Malaysia and the new stocks makes them the top player by revenue in Malaysia.
BY KIM JEE-HEE [firstname.lastname@example.org]