iHerb, a global health and wellness online shopping mall, serves over 10 million customers across 180 countries and is a well-known brand in Korea among those interested in health. CJ Logistics has worked with iHerb to provide consumers with faster and more convenient delivery services through their 'Cross-Border E-commerce' partnership. CJ Logistics established Asia's first GDC (Global Distribution Center), offering an innovative e-Commerce shopping experience where products dispatched from iHerb's U.S. headquarters are shipped to the Korean GDC and distributed throughout the Asia-Pacific region. We introduce the achievements of these pioneers of the 'Cross-Border E-commerce' era through an exclusive interview with Min Kwang Sung, Team Leader of CBE Business Development Team at CJ Logistics IFS, and Trent Kruse, Head of IR and Communications at iHerb.
A consumer in Japan, who recently became interested in health supplements, was surprised after ordering from iHerb, renowned for its health supplements. Contrary to expectations of a long wait due to shipping from the U.S., he received his supplements in just two days, much faster than products ordered within Japan. How is it possible to receive overseas direct purchase products so quickly, which typically take 1-2 weeks from release to customs clearance and delivery? The secret lies in the 'Cross-Border E-commerce' process of iHerb and CJ Logistics.
Min Kwang Sung) "The trend of overseas purchases is increasing in the global e-Commerce market. By developing CJ Logistics' Cross-Border E-Commerce model, iHerb's consumers can now purchase a wider variety of products from multiple countries at more affordable prices."
Cross-Border E-commerce(CBE) includes a concept encompassing international customs clearance and shipping, extending to product storage, inventory management, packaging, and fulfillment services. iHerb and CJ Logistics continually invest in logistics to deliver products to global consumers faster, safer, and more accurate. This investment ensures that iHerb customers in the Asia-Pacific region can promptly receive desired products.
(Trent Kruse) "Through our logistics partnership with CJ Logistics, we've improved transportation and cost issues, enabling reliable delivery services. We've re-established our strategy to ensure faster deliveries to global consumers, linking and optimizing both companies' systems. This has significantly increased customer satisfaction for iHerb consumers."
At the core of CJ Logistics' Cross-Border E-commerce process lies the Incheon GDC(Global Distribution Center). This center operates on a system where products are stored in countries close to the consumer and shipped immediately upon order. Opened in 2019, the iHerb GDC currently handles products ordered by consumers in Japan, Singapore, Australia, and other Asia-Pacific regions. Thanks to various automated facilities and advanced logistics technology, approximately 20,000 boxes are swiftly air-transported and released from Incheon GDC daily. Plans are underway to install the advanced logistics robot system 'AutoStore' to increase daily release capacity to 30,000 boxes, heightening expectations for the future.
(Min Kwang Sung) “CJ Logistics pioneered and operates the largest GDC business in Korea and works closely with government agencies on various issues. The introduction of the advanced logistics robot system 'AutoStore' has enabled us to process a larger volume of goods more rapidly.”
According to Transport Intelligence, a global logistics research institute, the worldwide CBE logistics market was estimated at approximately 100 trillion won in 2021 and is expected to grow to 176 trillion won by 2026 at an annual growth rate of 12.9%. CJ Logistics and iHerb plan to maintain their continuous and progressive partnership to achieve their long-term visions.
(Min Kwang Sung) “Expanding CJ Logistics’ presence in the Asian and global Cross-Border E-commerce system is our long-term goal. We anticipate that our partnership will achieve this goal and lead to innovation and growth in the logistics sector.”
(Trent Kruse) “I believe three key elements are crucial for maintaining our partnership: transparency, timely communication, and strong support. As we have done so far, we will continue to provide win-win solutions for our companies and customers through a partnership that embodies these three elements.”
CJ Logistics provides CBE logistics services in seven countries, including Korea, the United States, China, Japan, Malaysia, Singapore, and the Philippines, with annual sales growth. Operating the first Inbound Custom Clearancce (ICC) at Incheon Airport, which expedites customs clearance processes without storage functions, recently opened a second ICC in June. CJ Logistics will continue to develop advanced logistics capabilities and differentiated efforts, offering cost savings and efficiency improvements to customers and swift, safe services to global consumers. We invite you to look forward to the future of the logistics industry that CJ Logistics and iHerb will shape together based on CJ Logistics' exceptional capabilities.
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