[ad_1]
SSG.com and Lotteon strive to ensure ‘speed of delivery’
E-Mart and Naver expand online and offline synergy
Lotte Shopping “Strengthen competitiveness in Lotteon’s ‘grocery’ sector”
Coupang, who professed to “ take the lead ” through aggressive investing in order to go public on the New York Stock Exchange with leader Naver, is fighting for 1st and 2nd place. It is because there is a possibility that the business card will not be released.
The E-Mart and Lotte Shopping positions, which have long reigned as ‘distribution dinosaurs’, are sure to be impatient. Unlike the early 2000s, which was jam-packed with customers, if only offline stores were opened, they didn’t show a firm presence in the market amid the recent decline in offline stores.
E-Mart, a newcomer, says it has built an ‘anti-Coupang front’ through collaboration with Naver, but the first step is to close the gap with Lotte On, which is still lagging behind in the amount of transactions.
Lotte Shopping also has to resolve its duties from the crisis to rescue the e-commerce platform ‘Lotteon’, which is not giving such results even with the first anniversary of its launch.
The fierce competition that develops on and off the grounds, such as department stores, hypermarkets, discount stores, theme parks, and baseball, is also spreading to the e-commerce industry.
First, what stands out is the willingness to take over eBay Korea. The two companies announced that they are considering the acquisition of eBay Korea at the successive shareholders’ meetings on the 23rd and 24th.
If E-Mart has eBay Korea, the biggest advantage is that you will get powerful user-based data. E-Mart recently formed a blood alliance with Shinsegae department store to exchange 250 billion won shares in cooperation with Naver, the number one market share in e-commerce.
The number of customers using Shinsegae Group reached 20 million and the number of customers using Naver reached 54 million. The two companies will also land 450,000 salespeople through this combination. In addition, Naver signed a large-scale logistics cooperation with CJ Logistics in October last year by exchanging shares worth 300 billion won.
As for E-Mart, they have more than twice as many customers at once by joining Naver. Additionally, through the cooperation of various Naver logistics partners, it is possible to deliver early morning and same-day delivery services, as well as immediate delivery, arriving within 2-3 hours of ordering.
In this situation, if eBay Korea is also in hand, the slow delivery issue that is pointed out as eBay Korea’s weakness will be resolved with Emart-Naver’s logistics infrastructure and SSG.com’s low e-commerce market share. , which remains at the 3% level, will be reduced to 15% at once. It can be increased.
In particular, because Naver Shopping currently has a 17% market share, a clan of ‘e-commerce based Avengers’ is established, also known as Naver Shopping-eBay Korea-SSG.com. In this case, it will rise to a level that overwhelms Coupang (13%).
In addition, SSG.com, which starts pilot open market operations from the 20th of next month, can solve the problem of the lack of sellers in stores, which can act as a weakness in the initial phase of the business, through the acquisition of eBay Korea.
Founded in 2000, eBay Korea has established a strong position in the domestic e-commerce market, accounting for 70% of the domestic open market market for a time, with more than 300,000 sellers. The large number of vendors means the variety of products that they sell. SSG.com can drive your business without spending time recruiting salespeople.
In June 1996, if Lotte, which first entered the e-commerce market with the first internet mall Lotte Shopping.com in Korea, acquired eBay Korea, pioneering the power of the future with pioneering knowledge and initiatives in the e-commerce marketplace that only Lotte Shopping has and is expected to be possible.
This year, Lotte On announced that it will significantly strengthen the food competitiveness of Lotte, Lotte Mart and Lotte Super department stores, focusing on differentiation. Since eBay Korea has strengths in industrial products, it can create synergies by making up for the shortcomings of others.
For Lotte Shopping, ‘Lotte On’ is a sore finger. In April last year, Lotte Group Chairman Shin Dong-bin invested 3 trillion won to create ‘Lotte On’, but from the start of the launch, it suffered from technical issues such as traffic overload and search errors.
According to the Lotte Shopping business report on the 22nd, Lotte Shopping was appointed an advisor to former e-commerce business manager Cho Young-je, who expressed his gratitude.
However, internally it is known that all those referred to as the Lotte On business manager are having a difficult time finding a new representative. President Dongbin Shin is also said to be uncomfortable with the current situation.
Lotte On recorded 137.9 billion won in sales in the e-commerce sector last year. This is a 27% decrease from 2019, before the integration of e-commerce sectors such as department stores, marts, and hi-marts. During the same period, the operating loss was 94.8 billion won, 69% more than the previous year. Sales decline and the deficit increases, showing no signs of recovery.
Lotte Shopping has expressed its ambition to strengthen delivery capabilities, a strategy similar to E-Mart, to save Lotte On this year.
Currently, Lotte On is providing a ‘direct delivery’ service that can package and deliver products within 2 hours of ordering using Lotte Mart’s existing logistics network. To increase this, it plans to expand the ‘Smart Store’ and the Semi-Dark Store, which use offline stores as delivery bases.
“Relay delivery” has also been tested, which will further accelerate the speed of immediate delivery. Lotte On is testing a new type of delivery system called “relay delivery” with the logistics company PLZ at the Lotte Mart branch in Jamsil.
Existing delivery drivers are solely in charge of the local point (CP), and after that, the product delivered by the ‘plexer’ is delivered to the payer’s house by his own motorcycle, bicycle or vehicle.
Lotte On expects to cut delivery time in half if the delivery service is set up correctly. In addition, the maximum number of delivery boxes is expected to double and the delivery area to be expanded.
A Lotte On official said: “The relay delivery service is an experiment to deliver products to customers faster than a new form of delivery,” he said. “It is not yet clear whether (the service) will continue to expand.”
He added: “This year, we will refine details like ‘First Monday’ so that customers can feel that they are really receiving benefits,” he said. “We plan to focus on strengthening the competitiveness of the grocery sector.”
Reporter Han Ju-kyung [email protected]
Copyright holder © Periódico de Economía Financiera Unauthorized reproduction and redistribution prohibited
