The Retail Revolution in Korea
2002. 10. 23
Oh-Hoon Kwon, CIO of LOTTE Group
Today’s agenda
I. Trend in Korean Retail Industry
1. Growth by Sector
2. Trends
3. Enabler
II. Present condition of e-Business in Korean Retail Industry
III. Initiatives
1. CRM
2. Retail SCM
3. TO Be Model
4. B2B Strategy: eMarketPlace
IV. Strategy in retail Industry
LDCC-3-
Trend in Korean Retail Industry - Growth by Sector
Department Store(13.3%)
Discount Store(7.6%)
TV Home Shopping(1.8%)
Supermarket(4.2%)
CVS(1%)
Department Store(13.9%)
Discount Store(14.2%)
TV Home Shopping(3.4%)
Supermarket(4.2%)
CVS(1.8%)
1999 2002(E)
Discount Store and Home shopping showed Rapid growth rates in Korea, but supermarket
and Department Store keeps almost flat growth in Korean retail industry
* Source: National Statistics Office, Samsung Economic Resource Institute
Market Share by Retail Sector
27
.9%
37
.5%
LDCC-4-
Trend in Korean Retail Industry - Growth by Sector
When three companies capture market, customers can make optimized choice, competition
showed proper level, and market efficiency increases. Also, market share is concentrated
these leading companies (The Rule of Three)
Market Concentration in Dept. Store Sector
Collective Market Share of Big 6 Discount stores
[unit: %]
0
20
40
60
80
1996 2002E
68
35
33%p
0
20
40
60
80
1996 2002E
75
30
45%p
[unit: %]
*Source: National Statistical Office, LG Economic Research Institute, A. T. Kearney Analysis
LDCC-5-
Trend in Korean Retail Industry - Growth by Sector (D/S)
Discount stores have grown at about 30% annually and will overtake department stores in sales by 2003, but the growth rate is expected to decrease gradually
The Total Number of Discount Store In Korea
0
20
40
60
80
100
120
140
160
180
200
1997.12 1998.12 1999.12 2000.12 2001.7
Source: National Statistical Office, Samsung Economic Research Institut,
A. T. Kearney Analysis
Implications and influences
0
10
20
30
2000 2001 2002E 2003E 2005E
Discount StoreDept. Store
(Trillion Won)
Source: National Statistical Office,, Bank of Korea, A. T. Kearney Analysis
The Sales of discount store is expected to surpass that of department store between 2002 and 2003
Low-end pricing contributes to the stabilization of consumer prices.
Discount store lowered consumer prices by 1.79% from 1996 to 1999
Power will shift from manufacturers to discount store
Discount stores will number 270 – 280 by the end of 2002, reaching the optimal number and afterwards the growth will slow down gradually
LDCC-6-
Trend in Korean Retail Industry - Growth by Sector(T-commerce)
With a growing number of CATV viewers and TV shopping players, TV home shopping industry has grown fast and is expected to continue to grow
Key Drivers for Market Growth Historical Sales Growth
Increasing Number of Cable TV viewers;
0
500
1,000
1,500
2,000
2,500
1995 1996 1997 1998 1999 2000.6
New entry; Incumbents: LG Home Shopping , CJ39 New entrants: Hyundai Home Shopping, Woori Home
Shopping, Agricultural&Fishery TV
CAGR =69.7%
CAGR =69.7%
No. of CATV Subscriber(Thousand)
0
500
1,000
1,500
2,000
1997 1998 1999 2000 2001
(Billion Won)
Rapid growth of home shopping leads to Growth of courier service companies Emergence of an effective sales channel for mid
and small size companies Growing importance of customer relationship
management
CAGR =88.9%
CAGR =88.9%
Source: Hana Economic Research Institute, A. T. Kearney AnalysisSource: Korea Cable TV Association, A. T. Kearney Analysis
LDCC-7-
Trend in Korean Retail Industry - Growth by Sector(T-Commerce)
1998 1999 2000 2001 2002(1H)0
100
200
300
400
500
600
700
Sales
Sales Profit
4.9 8 15.2 22.6 25
[unit: million $]
Growth of CJ39Shopping
* Source: CJ39Shopping
Conventional market still have accounted for about 62.5%(2002E ) in the Korean retail sector, while TV Home Shopping has occupied just 2.8%. Therefore, it has a lot of possibility to grow in Korean retail industry
CJ 39 Shopping is the frontier and leading TV home Player in Korea
LDCC-8-
Trend in Korean Retail Industry - Growth by Sector(Internet Mall)
Internet shopping is expected to be the fastest growing sector in retail industry, and the competition is intensifying with new entrants from other industries
Sales History and Forecast
Source: Hana Economic Research Institute, A.T. Kearney Analysis
(Billion Won)
0
500
1,000
1,500
2,000
2,500
1999 2000 2001E 2002E 2003E
CAGR = 1
03.7
%
CAGR = 1
03.7
%
Among over 1700 players in 2000, only 10% of them sell more than 0.1 billion won per month.
Profitability is the most serious issue plaguing all of the players, but some of big players are expected to reach BEP in 2002
Compound Annual Growth Rates of internet shopping until 2003 is 103.7%
LDCC-9-
Trend in Korean Retail Industry - Growth by Sector(Internet mall)
LOTTE.com’s Vision Today’s Lotte.com(www.lotte.com)
Internet business growth in 2001 is twice than 2000, and the size of e-commerce reached $17.4 billion. Moreover, internet users in Korea reached 20.2 million.To grow continuously, internet providers should be concentrated on solve security Problem.
• Founded January 2000• Opened Internet Duty free shop• Started to sell private brand • Launched the merchandise delivery system jointly with off-line stores• Started catalog business • Opened "Lotte B2B Mall for meat" • Reached 160 million in first half in
2002, which increased 358%
comparing to same period in 2001
LDCC-10-
Trend in Korean Retail Industry - Growth by Sector(Entertainment)
A: Department Store B: Hotel
C: City Air Terminal D: Trade Tower
E: Hotel F: Exhibition Center
G: ASEM Convention Center
H: Business office center
Entertainment Shopping mall provides both traditional function and entertainment factor in a same area. A few years ago, In spite of popularity, it dulled to make profits, but it makes big progress currently.
Coex MallLotteWorld
Department Store Hotel
Theme Park Discount Store
Clinic Sports Center
Ice Link
LDCC-11-
The Next Phase2000+
Domestic Retail sector environment and retail Strategy
RetailTrends
Implicationsfor Logistics
Currently, Many companies have practiced joint e-SCM strategy to raise operating efficiency on S/C in Korean Retail Sector through shared information between partners.
New Trend in Korean retail sector is Providing of “Tailing service”New Trend in Korean retail sector is Providing of “Tailing service”
Important to Mental distance toward Customer Improve quality Compared with Cost Expand home delivery and e-Retailing Provide Tailored Service
1950s 1960s 1970s 1980s 1990s
Distribution
Assortment
Price Choice Quality
Extend e-SCM to e-Retailing srtategy
DSD(Direct Store Delivery by
supplier)
Centrali-zed
N/W Reengineering
• important to physical distance to customer• Physically expand number of store and size• Emphasize on improvement of price & quality• Provide Seamless customer service
Current Big Five strategies in domestic Retail
• Strategic Alliance with partners
• Demand forecasting and Replenishment in S/C
• Optimized operation thru Optimized logistics
• Re-architecture of e-Business operation Process
• Product Category Management
CRMSCMCust.
Value
Balanced Supply
and Demand
Customer Segmentation
and customizing
Trend in Korean Retail Industry - Trends
LDCC-12-
Trend in Korean Retail Industry – Enabler(Internet)
Entering e-Commerce via Internet has fundamentally changed relationship between partners on supply chain, and it has recognized efficiency usage of eCommerce is the one of the best competency advantage in competition.
Internet is that, as built connectivity whole supply chain from customer’s customer to supplier's supplier, the connectivity make possible to support goods and service transaction, processes, and shared sales information.
SupplierSupplier
Third PartyThird PartyLogisticsLogisticsProviderProvider
RetailerRetailer
DistributorDistributor
CustomerCustomer
Informatio
n
Products
/
Materia
l
• Real time sales info. Analyze & Sales based on customer’s needs• Customization of goods & service
based on customer management such as spending pattern, population, and regional types
• Upgrade customer service by support both On-line and Off-line
simultaneously
Convergence
Speed• Prompt response to customer &
market, fasten planning• End-to-End Real Time Tracking
of money, goods, service, and info.
• Reduced time to market & product Life Cycle Time
• Reduced delivery Lead time
Connectivity Go-Global
• Possible Real Time connect one to one or one to many
• Reduce transaction/investment/operation cost
• Globalization within organization, between organization, and between companies via Internet
ManufacturerManufacturer
LDCC-13-
Trend in Korean Retail Industry – Enabler(Collaboration)
Open Market Negotiations
Price-based discussionsAdversarial Relationships
Coordination
Information linkage (EDI)Longer-term contracts
Collaboration
Supply Chain Integration Joint PlanningTechnology Sharing
Customer Partnering
Collaboration is that
• Share information and IT technology
• Centralized decision making on Supply Chain dimension not sole company unit,
• Inter-dependence between companies in S/C,
• Make efforts maintenance and improve relationship between companies
• Regular Communication, prompt response, and increased number of communication
• Regular Communication between executives
Based on Changing in Mind-set and arousing strategic sympathy on Supply chain,
Supply Chain is not achieved by only emphasizing tech sided Version-up or depend by a few specialists. It needs new business mind based on collaboration and repositioning of organization and resources
With collaboration, we can access following issues in supply chain….. Discrepant product supply forecasting between retailer and
manufacturer Manufacturer do not recognize retail side’s sales strategies
and promotion planning, and so on in advance Retail side do not reflect manufacture side’s new product
development and related advertisement planning. Absence of joint analysis about market trend and consumer
information Absence of joint demand and supply management planning and
strategy on Supply Chain Absence of access toward Supply chain related to “Across
organization, Between organizations” manufacture side’s marketing, Sales, and Production
Planner Needs supply process that retail side’s category buyer,
person in charge of order, and sales forecast analyze team participant in and share information
Collaboration is that, it is important to get joint vision related with clear forecasting and
joint decision making based on trust and shared information between partners on Supply
Chain
LDCC-14-
Trend in Korean Retail Industry - Enabler(Collaboration)
Collaboration initiatives between retailers and their suppliers have gradually evolved from data capture to supply chain management initiatives
Evolution of Supplier/Retailer Collaboration
1970 1980 1990 2000 2010
Product I.D. Standards
QR/VMI/CRP1
Efficient Consumer Response(ECR)
Public Exchanges
Private Exchanges
UPC EDI ERP XMLTechnology Enablers:
CPFR
Lev
el o
f C
oll
ab
ora
tio
n
LDCC-15-
Trend in Korean Retail Industry - Enabler(Collaboration)
Different geographic regions have evolved at varying rates with respect to their trading partner collaboration practices
Supply Chain Initiative Adoption by Geography
Product I.D. Standards
QR/VMI/CRP
Efficient Consumer Response
(ECR)
Public Exchanges
Private Exchanges
CPFR
Asia Pacific
Europe and the United States
TimeRetailer initiatives in Asia Pacific tend to be about five years behind those in Europe and the United States.
Le
ve
l o
f C
oll
ab
ora
tio
n
LDCC-16-
Trend in Korean Retail Industry - Enabler(Collaboration)
Three fundamental collaboration models have emerged, each with varying types of functionality and degrees of benefits
CPG Retailer
One-to-One
One-to-Many
CPG-to-Retailer Collaboration Models
Many-to-One
Many-to-Many(Retail-Driven)
Many-to-Many(CPG-Driven)
Pri
vate
E
xch
ang
eP
ub
lic
Exc
han
ge
1-to
-1
Un
de
rly
ing
Da
ta S
tan
da
rdiz
ati
on
LDCC-17-
Maximum scale of 5points
Source: KRG, 2001. 10, eBusiness invest 100 higher rank companies
4.71
4.33
3.73
3.6
3.47
3.42
0 1 2 3 4 5
e-procurement
SCM
ERP
eMP
CRM
KMS
eBusiness Solution Use e-Procurement is the first in
rate of use. SCM, ERP are
next.
The reasons why e-
Procurement Solution is the
first are high-rated
procurement by internet as
well as easy to transform
procurement process to e-
Commerce.
Prospect of rapid growth in SCM, e-Procurement and eMP in the future.
Present condition of e-Business in Korean Retail Industry
LDCC-18-
Maturity rate of eBusiness by industries
5.886.44
9.38
7.59 7.94
6.437.28
1.55
3.73
6.74 6.48
4.123.21
4.31
2.353.12
4.413.8
5
2.663.56
9.78
13.29
20.53
17.8717.06
12.33
15.14
0
5
10
15
20
25
Information Transaction Interaction ToTal
Government Manufacture Finance Retail&svc IT Construction Total Average
Source: Korea Computer Research/IT Newspaper, KRG, 2002Finance is leading the eBusiness in Korea. It recorded 20.53
The next are Retail&Svc(17.87), IT(17.06)
Manufacture, Construction and Government showed low score compared with other industries
Retail&Svc showed relatively high rate but still low. In addition e-Business is prospected the high growth in the near future.
Present condition of e-Business in Korean Retail Industry
LDCC-19-
Investment plan in 2002 Retail&Svc)
75.9%
62.1%
41.4%37.9% 37.9%
34.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Security CRM KMS SCM DW Mobile
Source: e-newspaper, KRG, 2002
Security is the first(75.9%)and next are
CRM(62.1%), KMS(41.4%), SCM(37.9%)
Retail&Svc is expected to drive the dem
and of SCM compared with other indust
ries.
Some of big retailors have implemented
1st phase and is expected to invest cont
inuously this year. According to the res
earch 10s among 29 companies are doin
g SCM Project.
The reasons why eBusiness is accelerat
ed are invasion of Multinational Distribu
tion companies and reduction of revenu
e caused as tough competition.
SCM is leading solution in Distribution&Svc after 2002Retail&SvcRetail&Svc
Present condition of e-Business in Korean Retail Industry
LDCC-20-
Index SCM eMP SHOPPINGMALL eCRM
operating 5.3% 8.0% 16.0% 10.5%
Plan 50.7% 28% 21.6% 64.5%
No plan 42.7% 61.3% 58.7% 23.7%
stop/withhold 1.3% 2.7% 2.7% 1.3%
Source: KRG 2001.8, 170 enduser survey, Revenue: over US$100M
E-shopping mall being constructed actively, but eCRM expected to lead the market s
oon.
SCM is going to be introduced irrelatively industries, and eProcurement Infra is expa
nded in distribution and CPG industries.
SCM and CRM leading the e-business market soon
Present condition of e-Business in Korean Retail Industry
LDCC-21-
Initiatives - CRM
Reinforce Customer Royalty by CRMReinforce Customer Royalty by CRM
Easy to apply and introduce CRM as the tendency of approaching to customer in Retail industry Need different CRM strategy according to types of businessShare customer and Sales information with suppliers to deliver goods at right time through CRM
Easy to apply and introduce CRM as the tendency of approaching to customer in Retail industry Need different CRM strategy according to types of businessShare customer and Sales information with suppliers to deliver goods at right time through CRM
Integrated DBM’s Closed Loop Process
Service
Sales Opportunity
Customer maintenance
Marketing
Sales
Customer DB
Customer Acquisition
Customer Management
Customer Retention
Customer Viewpoint Functional point
Collect Customer info.
Strategy
Work
IT
Prompt response to fasten changed IT
Reduced implementation & maintenance Costs
Customer info. Analysis tool
Integrated Customer related work
such as Marketing, Sales, Service, etc Understand Consumer’s needs Efficient Service Management Management of redundant data
Shared enterprise info.
Established Consumer-centric Process
Consumer Segmentation
Customer Maintenance and acquisition
Market
Organizer
Market
Organizer
Integrated DBM Plan
LDCC-22-
Korean Retail players built Web-EDI preferentially and currently they are driving to built mainly CMI/VMI, CAO based on improvement of logistics
Korean Retail SCM CaseKorean Retail SCM Case
Initiatives - Retail SCM
LotteMart, LG Household & Health Care
Yuhan-Kimberly,
Chelijedang, P&G
CarrefourKorea
Ogguki, Cheiljedang, P&G
Yuhan-Kimberly,
Unilever,
Cheiljedang,
Hyundae Dept.
LGmart, DongsuFood, Cheiljedang,
LotteMart, Yuhan-Kimberly
LGmart
Yuhan-Kimberly, P&G,
Unilever,
EDIEDI
CMI/
VMI
CMI/
VMI
CPFR
CPFR
CMI/
CAO
CMI/
CAO
CMICMICMCM
VMIVMI
LGmart
Pulmuone, Aseen
FineKorea
SCMSCM
LDCC-23-
Partnership with Supplier
• CPFR – Collaborative Planning, Forecasting &
Replenishment
• Reduce Lead time and inventory thru VMI
• Co-managed product
planning/development/display/assortment/sales
Visibility of Supply Chain
• Based on partnership with supplier, Real Time
handling of inventory and purchasing planning
through visibility of supply chain
Shared consumer’s trends with whole
supply chain
• Provide Customized service through reflected
customer’s needs instantly
• Cut a price with reducing Lead Time and
inventory
We should equip Responsive and Consumer-Driven System to raise operational efficiency on S/C with working together between retail and manufacture
We should make simplify and optimize Products/information/money flow to raise efficiency from
Manufacture-Process-Logistics, distribution to consumers on supply chain. Then finally, expanded
sales to maximize customer satisfactory
Initiatives - To Be Model
Retail Consumer
Minimized
inefficiency in
Supply Chain
Raised Customer Satisfaction
Raised Operation efficiency
Raised Customer Royalty
Expanded sales Opportunity
•Strategic alliance•Demand Forecasting•Optimized Logistics•e-Business•Category management
Maximized Profit
thru Customer
Satisfaction
LDCC-24-
Strategic AllianceStrategic Alliance
Demand Forecasting on S/CDemand Forecasting on S/C
Optimized LogisticsOptimized Logistics
e-Businesse-Business
Product Category ManagementProduct Category Management
• As joint investment related with partner’s internal and external non-value added activities to reduce cost and raise efficiency, provide benefits to customers as well as the partner
• Raise flexible supply responsibility and effective management of materials as operating supply forecasting and planning activities according to end-user’s situation
• Through implementation of advanced e-Business, seek to operation efficiencies such as reduced cost, minimized error rates, increased transaction cycle time, and so on
• Through strategic alliance, effective equipment, and usage of IT technologies, manage product distribution network rationally
• Through product assortment in retail channel and balancing between costs, manage and maintain product category efficiently to increase consumer value
Big Five Strategies in Retail SCMBig Five Strategies in Retail SCM
SCM is total strategy to cover retail and logistics that to satisfy consumer and remove inefficiency during the operation through sharing information with partners on supply chain
Initiatives - To Be Model
LDCC-25-
• ABC
Based on operating activities Cost distribution and Management, Support effective decision making
• Initiative bundling
joint technology investment and distribution
• Value based incentive
distribute profits fairly between partners.
• Standard of Product Code
Common language in Distribution activities
• Official Product information
Used Consistent Product info.
• Shared Demand information
Raised planning and response capability both manufacturer and retailer thru shared consumers’ buying info.
• Market-level Forecasting
• Support optimized process
Built logistics management process
• Exchange and manage product info. - EDI
• Direct Store Delivery
Fast-moving goods
Co- Consolidation
Slow-moving goods
• Joint delivery
• Coordinated transport
make delivery route to deliver many tasks at once
• Cross-Docking
• Balanced variety
improve product assortment with collaboration
• Product deletion
Product In/Out
• New Product management
• Centralized conversion
Based on optimized logistics field, support to concentrated on competency advantages in process and manufacture field
Strategic AllianceDemand
Forecasting in S/C Optimized Logistics e-Business Category Management
Details of Big Five Strategies in Retail SCMDetails of Big Five Strategies in Retail SCM
Based on progressive collaboration between partners, reduced inefficiency sectors like external factors and maximized operating efficiencies
Initiatives - To Be Model
LDCC-26-
- Organization and culture - BSC- Technologies- Logistics network
SCM Strategy
SCM Components
SCM Infrastructure
- Strategic Alliance- Demand Forecasting in Supply Chain- Optimized Logistics- e-Business- Product Category management
- ABC (Activity Based Costing)- Bar-code- Direct Store Delivery-Consolidation)- Cross Docking- Web- EDI- Replenishment- category management
As most companies built SCM components and infrastructure, Strengthen internal competency advantages and drive SCM strategies through partnership on Supply chain
SCM Components and Infrastructure SCM Components and Infrastructure
Initiatives - To Be Model
LDCC-27-
Initiatives - Logistics Network Since 1999, it has increased 30% annually, and it reached $1.2 billion sized market in 2001. Currently, Korean prime CVS players carry out solitary or joint logistics service thru its store(Lotte.com’s merchandise delivery system jointly with 7-Eleven
Enterprise’s Integrated Logistic Network
Lotte Confectionery
Lotte Chilsung, etc
Lotte Elec.LotteCanon, etc
Lotte ShoppingLotte Mart, etc
LotteriaTGI Friday
CustomerSupplier
CPG
Headquarter
Retails
Service
RestaurantEng
OMS TMS WMS
Logistics Control Center
ERP or Legacy Interface
7-ElevenLotteHotelLotte World
LDCC-28-
Initiatives - B2B Strategy: e-Marketplace
While B2B e-market place in Korean retail industry is in embryo, the government and private sectors are cooperating to build B2B infrastructure dubbed “KoreaRetailXchange”
Worldwide B2B E-marketplace KoreaRetailXchange
Participants; Ministry of Commerce, Industry, & Energy,LG Mart, Lotte Magnet, Samsung
Tesco,Shinsegae E-mart, Hanwha Store, Hyundai Department Store
Start of operation (Planned); Second half of 2002
Value proposition; Construction of an e-marketplace of Korean
nationality Enhancing competitiveness of participants by
enhancing their purchasing power and efficient supply chain management
Functionality; Operate as a non profit organization to secure
neutrality Maintain openness to secure “critical mass” Improve efficiency for participants through process
standardization and offering of diverse services
Retail Market
Xchange
Global Net Xchange
Worldwide Retail
Exchange
Starting Date
2000. 6 2000. 2 2000. 3
Leading Company
Wal-mart Carrefour, Sears
K mart, Albertsons, Tesco
Participants
8 founders& 9 members
17 founders & 41 members
Remark Procurement automation
CPFR Inventory
25% reduction
Cycle time 50% reduction
Standardized procurement
CPFR Auction
SCM service
Standardized procurement
*Source: A.T. Kearney Analysis
LDCC-29-
Initiatives - B2B Strategy: e-Marketplace
LCN(Lotte Commerce Net) is “Private Community Network” that maximize connectivity between subsidiaries or subsidiaries and its partner as converting offline centric business to online –centric business provide us maximum efficiency and boost profit.
LCN (Private eMarketplace)
LCN (Private eMarketplace)
Web-EDIWeb-EDI
Electric IncomeElectric Income
CACA
CPFRCPFR
ASPASP
LotteMartLotteMart
Lotte Dept.Lotte Dept.
LotteLemonLotteLemon
K - 7K - 7
SupplierSupplierRetailerRetailer
......
Collaborated Companies
.
.
L-ProNetL-ProNet
E-Tax BillE-Tax Bill
KoreaRetailXchange Global-eMPKorea-eMP
LDCC-30-
Strategy in Retail Industry
Provide consolidated e-Biz environment
• Provide single integrated cyber space both Lotte Group subsidiaries and its partners• Create Win-Win Strategy to share and use information
Increase businessefficiency
Accomplish to built national infra
in retail industry
• Only one standardized infrastructure and connectivity Synergy effect• Effective business process increase profits, reduce inventory level, etc
• Execute Korea’s Ministry supervised business for effective EC in field of retail industry• Seek to way to connect to external e-MP
LCNCenter
manufacturerRetail Logistics
Partners
Alliance
Support retail Contents
. Authorize retail service
. Settle service fee
Lotte Group Branch company
. Shinsegae
. Samsung TescoEDI
Share Product Info
Share Product info
Global Sourcing
EAN Korea
LDCC-31-
Strategy in Retail Industry
XML/EDI(VAN)XML/EDI(VAN)
CMSCMS
P
D
S
CPFR
C
M
VPN
Network Back Born, Security, Contact Center Network Back Born, Security, Contact Center
Lotte GDC Center
LCNPortalSite
E-T
ax
B
ill
e
I
C
R
M
K
M
S
Co
llab
ora
tive
IT
Biz
E-
Co
ntra
ct
Inte
rne
t Fa
x
Se
rvic
e
Mo
bile
AS
P
Se
rvic
e
Infra
stru
ctu
reP
rod
uc
t
E-
Pro
cu
rem
en
t
Product Positioning and Create Synergy w Existing Biz. - Additional Product : *PDS, *CPFR, *CM, e-Tax Bill/Contract, Mobile - Infrastructure Product : XML/EDI, *CMS - Collaborative IT Biz. : XML/EDI Service Collaborative company IT Supporting Biz. - Integration of LDCC’s service I LCN Portal
Promote profit extension strategy through XML/EDI - Existing and new consumer retention based on LCN - Emphasis differentiation strategy comparing to competitor
Improve eTransformation Business - To be a leading company in SCM - Promote e-Transformation biz. to Lotte Group’s partners
LDCC-32-
LCNCenter
Retail Providers
EAN Korea
KoreaRetailXchange
Establish Global Standard of Infrastructure - Create new business through co-work between LCN service and its related organizations - Establish Global trade infra through expand standardization through co-work with EAN Korea
Provide convenience to connect with integrate between LDCC’s retail-centric Hub Center and other’ retailers’ - Organize separate retail community - Co-operate with other retailers though system connection
Accomplish LDCC as a Core HUB Center for electronic commerce in Retail industry
Strategy in Retail Industry
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