DoorDash could learn valuable lessons from the recent “B-Mart” push by South Korean startup Woowa Brothers Corp.
Woowa Brothers, which has a 55.7% market share in the delivery platform and is part of Delivery Hero, expanded its fulfillment centers from 13 to 26 within six months of launching B-Mart.
The company has successfully targeted single-person households, which make up 29.8% of families in South Korea, by offering small packages and products.
B-Mart has expanded its offering from 300 products to more than 3,000 in just six months, aiming to replace spending at convenience stores amid the COVID-19 pandemic.
Woowa Brothers have also succeeded in private labels, working with companies such as CJ CheilJedang, OurHome, GMF, and Ottogi.
The latter partnership was formed when the pandemic hit Ottogi’s B2B sales, which account for 40% of its total revenue.
However, Woowa Brothers’ previous venture, “Baeminchan,” failed due to demand forecasting and fulfillment issues.
The company relies on manual fulfillment, which could become a burden as the business grows. As a result, Woowa Brothers are now looking for a fulfillment partner to solve this potential problem.
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