Lotte benchmarks Netflix to launch integrated online e-commerce platform
SEOUL, AJU - South Korea's retail group Lotte has benchmarked Netflix, the world's top over-the-top video-on-demand service operator, to launch an integrated online e-commerce platform by analyzing big data with artificial intelligence for customized services. It is the brainchild of chairman Shin Dong-bin who has wanted the integration of online and offline data.
In 2018, the group unveiled a new strategy to bolster its e-commerce business under the control of Lotte Shopping, the operator of Lotte hypermarkets and department stores, by integrating online malls into an integrated platform.
Lotte Shopping said that its new platform called Lotte On would make its debut on April 28 after two years of preparation. The platform recommends customized products by analyzing the behavior and attributes of customers into 400 categories. Customers can easily and quickly purchase products they want.
"No e-commerce company at home has integrated online and offline data," Lotte Shopping's e-commerce division head Cho Young-je said, suggesting customers can use all shopping malls with a single login. "Rather than taking distributors as a comparative case, we studied in-depth about Netflix." Netflix has garnered global users by providing content suggestions based on big data and personal preferences.
Working with 15,000 offline stores, the platform provides event information from offline stores frequently visited by customers and breaks down online and offline shopping boundaries by communicating with store employees through real-time live broadcasts.
"We will increase competitiveness by focusing on digitizing offline rather than on price. We have no intention of doing business in the red," Cho said. "We will improve its profit structure by minimizing logistics costs."
Lotte On will provide timely delivery based on the fact that customers want to receive goods at the time and place they want. The group will build integrated logistics services that eliminate boundaries between affiliates and reduce logistics costs by utilizing offline stores.
Lotte Shopping disclosed the goal of using Lotte On as the group's key growth engine and of achieving 20 trillion won ($16.3 billion) in online sales and break-even points by 2023.