South Korean chain cracking retail success where others have failed
February 24, 2014
South Korean chain cracking retail success where others have failed
South Korean chain E-Mart has established itself as a leading retailer through its continual innovations that have been copied by brands across the world.
E-Mart first took the retail world by storm when they introduced virtual stores in subways in 2011, followed by a shadow QR code in 2012. Most recently they have deployed a fleet of ‘flying stores’ around Seoul as part of a retail promo aimed at the city’s time-pressed workers.
E-Mart’s truck-shaped balloons – branded with the company’s bright yellow signature colour palette – were each equipped with a wi-fi router that provided free internet access as they floated through shopping malls, trains and other public spaces. Once connected to the network, customers were able to download coupons from the app and apply them when making a purchase using the E-Mart mobile app.
During the month of the promotion, downloads of E-Mart’s app rose to 50,000, while its mobile sales more than doubled. The retailer also felt the benefits of this campaign offline, as coupons downloaded from the balloons drove a sales increase of 9.5% in its stores.
Sure these initiatives are innovative, impressive and engaging but most importantly they were developed based on customer insights. Addressing the fact that South Koreans work the longest hours in the world and have the highest penetration of mobile phones, E-mart was able to provide a solution – an easier way to shop!
So what can we learn from E-mart’s high flying strategy? The customer needs to be at the heart of every decision made and strategy executed. Rather than focusing on selling, retailers need to be generating considered insights and using these to develop meaningful solutions and engaging experiences for their customers.