Creating Synergy
The Lotte Group announced on October 9 that it set up PT Indo Lotte Makmur with the Salim Group in Indonesia to launch the iLOTTE online shopping mall on October 10 (local time). The two groups have equal shares in the joint venture, and the head and the deputy head of the joint venture is from Lotte and Salim, respectively.
iLOTTE adopted a mall-in-mall concept for the first time in the Indonesian online shopping industry. It comes with the online malls of Lotte Department Store, Lotte Mart and Legel, which is the largest infomercial company in Indonesia. In addition, approximately 1,000 genuine brand shops’ products are available on its open market platform. MAP, the largest fashion company in the country, is expected to join the online shopping mall in the near future along with the biggest bookstore in Indonesia.
iLOTTE presents K-Shops as well. These shops are to assist in the marketing of South Korean small and medium-sized companies’ products as well as those of well-known cosmetic brands such as Tony Moly, Etude, Laneige and Sulwhasoo. The K-Shops are to be run in connection with Lotte.com in South Korea.
Furthermore, iLOTTE is planning to provide quick delivery in Jakarta by using motorcycles from the Lotte Department Store and Lotte Marts in the city. During the pre-open period that started in August, it tested the delivery of Lotte Mart products within three hours in Jakarta and a large number of local citizens expressed their satisfaction with the service.
The Lotte Group is expecting that iLOTTE will create synergy with its subsidiaries already doing business in Indonesia. At present, the group is running one Lotte Department Store, 42 Lotte Marts, 30 Lotterias, three Angel-in-Us coffee shops and two Lotte Duty Free Stores in Indonesia. Moreover, the joint venture partner Salim Group is running 11,000 Indomaret convenience stores in the country and its scope of business ranges from food and logistics to telecom and automobile.
In the meantime, the Lotte Group recently acquired a Vietnamese credit card company in order to assist in the business of its logistics subsidiaries. LC Titan, a petrochemical company acquired by the group in 2010, was successfully listed on the Malaysian Stock Exchange in July this year by attracting an investment of around four trillion won.