E-commerce began as a niche within the retail industry but has grown rapidly and is expected to surpass offline retail by 2025. As a result, the value of urban fulfillment hubs is rising significantly due to increasing demand for faster delivery, urban population concentration, and the limitations of suburban logistics centers.
Delivery services are becoming more segmented, and urban warehouse delivery is emerging as a key competitive factor due to its ability to support faster fulfillment. In particular, hubs located within 10 km of city centers can support up to three delivery cycles per day, whereas suburban hubs are limited in rotation, resulting in lower productivity.
Companies typically start with one or two large-scale regional hubs and then expand their logistics networks by adding more localized and service-specific nodes.
Cushman & Wakefield conducted a nationwide accessibility analysis based on distances between 3,506 administrative districts to identify optimal logistics locations by business growth stage:
- Initial Stage: Centralized national hubs are best located in the Chungcheong region, including Cheonan, Anseong, and Jincheon.
- Growth Stage: In SMA, Seongnam, Bucheon, Goyang, and Namyangju are favorable; in regional areas, Yeongdong, Gimcheon, and Muju are key.
- Maturity Stage: The SMA logistics network evolves into four major clusters, with Goyang, Seongnam, Siheung, and Gunpo gaining importance.
- Regional Expansion: Additional hubs are needed in Honam (e.g., Gwangju, Naju) and Gyeongbuk (e.g., Daegu, Chilgok).
In conclusion, logistics hub strategies must evolve with each stage of business growth. Urban accessibility and delivery rotation efficiency are becoming critical factors in logistics planning.
