Retailers seeking new growth engines with NFT, metaverse
來源：開云體育app官方網站發布日期：2023-01-31 15:39:58 瀏覽：34
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By Kim Jae-heun
Home shopping channels and other retailers here are going virtual to find new sources of income, targeting mostly cyber-savvy young consumers as they struggle to maintain their traditional businesses amid a rapidly changing market environment, according to industry officials Wednesday.
Companies like Lotte Homeshopping, GS Shop and CJ OnStyle have been facing difficulties to improve their declining profitability that has been affected by the emergence of e-commerce firms and a price hike in broadcasting fees. Broadcasting platform operators here have increased their fees for home shopping operators by 20 percent to 30 percent in recent years.
The growth of home shopping operators is also hindered by the Broadcast Act as well as their public obligations to protect viewers and pay a broadcasting development fund to the government. Meanwhile, there aren't many obstructive factors for metaverse retail operations yet as they are run mainly on mobile platforms. This has been leading companies to eye a livestreaming shopping service.
Lotte Homeshopping is most active in this regard. It started by introducing a virtual model named Lucy in February 2021 and debut her as the show host selling real products in its livestream shopping service.
This year, it signed a memorandum of understanding with 13 local information and communications technology (ICT) companies specializing in artificial intelligence (AI), virtual reality (VR), extended reality (XR), blockchain, non-fungible tokens (NFT), content and cloud computing to establish a metaverse platform. Here, Lotte Homeshopping's customers will experience both products and their brands, which they can later purchase with virtual currency.
In April, Lotte Shopping will advance into the non-fungible token (NFT) business utilizing its intellectual property of animated characters in partnership with a Chinese content startup called Beyond Boundary.
The two companies agreed to collaborate in developing digital content targeting the Chinese market on local social media channels such as Douyin (TikTok) and Xiaohongshu.
"We are planning on creating competitive content in art and culture to promote our new business and become a media commerce company," said Lee Bo-hyun, head of Lotte's media business division.
GS Shop, a home shopping affiliate of GS Group, also joined the trend to launch a live commerce platform called Shoppy Live, where it hosts 10 shows a day on average. The company has already surpassed 55 billion won in online orders on the digital platform after only eight months.
"Shoppy Live is evolving with broadcasting experts in the field and the combination of technology and marketing. It will continue to grow to provide new shopping experience for our customers," GS Shop Live Commerce Marketing Manager Lee Jin-ho said.
CJ OnStyle is preparing to open a live commerce studio adopting VR and XR technologies to sell apparel next summer.
Convenience stores to attract young customers with metaverse
Convenience store operators are also paying attention to the virtual world ― mainly to attract young, digital-savvy customers. Here, they are collaborating with local food firms to offer popular items sold at convenience stores on their metaverse platforms.
The country's top convenience store brand CU, operated by BGF Retail, signed a collaboration deal with CJ CheilJedang to present its best-selling food products on the global metaverse platform Zepeto. It is BGF Retail's second partnership with the local food company after Binggrae.
CU plans to open its stores in the virtual world, where people can choose an avatar to shop for CJ CheilJedang's cooked rice, frozen dumplings and chicken breast.
BGF Retail said a total 25 million people have already visited CU's convenience store on Zepeto and purchased some 50,000 items online.
The company has diversified its product portfolio recently to sell fashion items like clothes, handbags and hats and it plans to introduce additional products like sweatshirts and training pants. BGF Retail will also set up a photo booth in Zepeto's virtual world for young customers to come take pictures with their friends.
"The metaverse has the advantage in attracting customers of Generation Z, who are familiar with digital media. They can go online to visit our store and check out our products that they can actually purchase in the real world. This will create intimacy between our brand and the young customer," a BGF Retail official said.
Another convenience store giant GS25 also opened its store on the metaverse platform to invite customers to cook food and play games online.
Retailers opening training center in virtual world
E-mart's e-commerce firm SSG.com established a virtual training center recently for its new employees called SSG Town. Starting from the first half of this year, it will request its new staffers to undergo training on its metaverse platform, where they can go round the office and meet colleagues with their avatars.
SK Group's e-commerce firm 11STREET is also utilizing digital content to provide a seven-week training program for new recruits.
"Following the rapidly changing retail trends, local retailers are utilizing the metaverse platform in various means. However, they are all in the early stages and we need to wait and see how they develop until we can fully implement it at full scale," a CJ OnStyle official said. "One thing is for sure, the metaverse is the future for home shopping firms and it is no longer a choice, but a must."
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