Integrating Online Businesses of Retail Units
Lotte Group has unveiled Lotte On, an e-ecommerce app designed to integrate the online businesses of the group’s entire retail units.
The most differentiated point of Lotte On is ultra-personalization. The app is designed to timely recommend necessary products to customers by analyzing their purchasing patterns based on big data.
The app relies on Lotte's vast data and 15,000 stores around the nation. Lotte On utilizes big data in collaboration with Lotte Members, which boasts 39 million registered members. This is about 75 percent of Korea’s entire population.
Lotte On has also diversified delivery services so that individual customers can choose delivery times and places they want. Customers can select any of the Smart Pick Services at over 7,000 stores operated by Lotte Group, including the Quick Delivery Service of Lotte Mart's Fulfillment Store and Lotte Department Store that delivers goods to customers within two hours and the Early Morning Delivery Service of Lotte Super.
This is why Lotte is confident of success in the e-commerce sector. E-commerce companies are struggling with deficits due to excessive competition. In the case of Coupang, its consolidated sales hit 7,135.0 billion won in 2019 but its operating losses amount to 720.5 billion won. Its cumulative deficits have topped three trillion won.
Lotte Group is pushing to make Lotte On a game changer. However, e-commerce industry insiders say that Lotte is one step behind its rivals in the e-commerce market. For instance, Shinsegae Group officially launched SSG.com, a new online company that integrated the online businesses of Shinsegae Department Store and E-Mart, in March 2019.