[비즈한국] Logistics company Hanjin002320 announced that it will discontinue its 'Digital Easy Order' service as of June 30. Digital Easy Order is a product sales platform launched by Hanjin in 2021 for small business owners and merchants in traditional markets.
It is reported that Hanjin had high expectations for Digital Easy Order. As a business targeting small business owners, it also held significance in strengthening ESG (Environmental, Social, and Governance) efforts. The Digital Easy Order business was mentioned in the '2022 Hanjin ESG Report,' and during Hanjin's 2022 earnings announcement, the company stated, "We are introducing new platform business models such as Digital Easy Order and the K-Fashion 'Soup' business, and are striving for shared growth with various members of society."
Hanjin had been actively pursuing the Digital Easy Order business until recently. In March of this year, Hanjin issued a press release stating that it had opened a dedicated pavilion for the Nonsan Strawberry Festival on Digital Easy Order. A Hanjin official said at the time, "Digital Easy Order is a win-win platform that relieves operational burdens for small business owners and maximizes festival promotion and profitability for local governments," adding, "We will continue to strengthen cooperation with local festivals to expand sales channels for small business owners and continue our logistics-based sales support service that delivers excellent local products to purchasing customers as quickly and safely as possible."
For this reason, reactions to Hanjin's termination of the Digital Easy Order service have been that it is sudden. Since the business had been actively pursued until recently, few expected the service to be discontinued. Hanjin has not been experiencing recent sluggish performance or financial deterioration, nor have there been significant changes in management.
However, Digital Easy Order has been evaluated as having failed to establish a significant presence in the e-commerce industry. Compared to large e-commerce companies like Coupang or Kurly, the sales volume was not large, and it was even difficult to find reviews on the Digital Easy Order application (app). From the perspective of small business owners, it is analyzed that selling products through large platforms with more users, such as Coupang, is more advantageous. Although Hanjin is a large logistics company, there have been criticisms that it lacks relevant know-how compared to specialized e-commerce firms.
Of course, Hanjin has also attempted to strengthen its e-commerce capabilities. In April of this year, Hanjin announced that it had signed a contract with 11Street regarding the operation of logistics services. Hanjin explained this as a strategic choice to maximize the business expertise of both companies and stated that it would build a fulfillment service foundation optimized for market demand. Fulfillment refers to an integrated logistics service where a logistics company handles the entire order process, including receipt, storage, inventory management, packaging, and delivery, on behalf of online sellers.
Hanjin stated that while it is discontinuing the Digital Easy Order service, it plans to introduce a new type of service in the near future. A Hanjin official said, "We are preparing to transition to a more effective channel that can connect small business owners and consumers, and we plan to implement it soon." However, unless there is a clear differentiator from existing e-commerce companies, it is expected that the new service will also face difficulties in gaining a significant presence in the industry.