BGF Retail outlines KRW30bn online investment
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BGF, owner of Korean c-store chain CU, has boosted its stake in online grocery business Hello Nature.
Founded in 2012, Hello Nature offers compact packaged-grocery deliveries. It was bought by SK Planet in 2016. Its sales reached US$9 million last year.
Investing 30 billion won (US$28 million) for a controlling 50.1 per cent stake, BGF will run Hello Nature as a joint venture.
“The online premium grocery shopping market is a blue ocean which has been growing rapidly every year,” said BGF chief Lee Keon-jun.
BGF aims to build Hello Nature into the leading online grocery platform within the next five years by connecting its delivery service to 13,000 CU stores across Korea.
Hello Nature will also consider consider expanding into the offline market.
Demand for online delivery services for fresh food in Korea has been increasing rapidly thanks to the growing number of one-person households – 5.28 million in 2016, accounting for 27.8 per cent of all household types in the country.
Questions & Answers
Q.What is the total value of BGF's investment in Hello Nature?
What is the total value of BGF's investment in Hello Nature?
BGF has invested 30 billion won in Hello Nature. This figure translates to US$28 million, securing BGF a controlling 50.1 per cent stake in the online grocery business.
Q.How does BGF plan to develop Hello Nature into a leading online grocery platform?
How does BGF plan to develop Hello Nature into a leading online grocery platform?
BGF intends to connect Hello Nature's delivery service to its 13,000 CU stores throughout Korea. The aim is to achieve this goal within the next five years, making it a market leader.
Q.What factors are driving the increased demand for online fresh food delivery in Korea?
What factors are driving the increased demand for online fresh food delivery in Korea?
Demand is increasing due to the growing number of one-person households in Korea. In 2016, there were 5.28 million such households, representing 27.8 per cent of all household types.
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