Naver AI Provides Nearby Shopping Information Along with Restaurant Recommendations

[Interview] Naver's Choi Ji-hoon, Lead Manager · Kim Jin-ho, SmartAround Leader

Adding 'Shopping' Content to SmartAround... Expanding Service Areas
Providing Customized Information on Nearby Clothing, Shoes, and Accessories Stores... Considering Expansion to Japan
Major Achievement: Offering Small Businesses Large-Scale Partner and Promotion Opportunities

Choi Ji-hoon, Naver Senior Leader (left), and Kim Jin-ho, Smart Around Leader (right), are being interviewed by Asia Economy.

[Asia Economy Reporter Bu Aeri] From now on, you will be able to obtain desired shopping information without typing search terms like 'Chungmuro restaurants' or 'Myeongdong clothing stores' into the Naver search bar. Naver is preparing a service that analyzes users' preferences and current location using artificial intelligence (AI) to provide shopping information.

On the 3rd, Naver's Chief Leader Choi Ji-hoon stated in an interview with Asia Economy, "We plan to add 'shopping' content to Smart Around." 'Smart Around' is a feature where AI finds nearby restaurants. You just need to tap the 'Near Me' icon on the 'Green Dot' on the Naver page of your smartphone. This service has 4 million monthly active users (MAU). Riding on this popularity, the service area will be expanded to shopping, hobbies, and more.

Chief Leader Choi explained the reason for creating the service, saying, "When people travel, they already search for 'Jeonju restaurants' beforehand, but users still search the same thing again on-site," and "We found that 20% of users are doing unnecessary typing."

The 'Deep Space' AI of Smart Around does not simply provide information on famous restaurants. Based on the information users have used on Naver so far, it recommends restaurants that match individual preferences. This is why recommended restaurants differ from person to person even when searching in the same location.

◆"AI also recommends 'clothing stores'"= When 'shopping' content is added to Smart Around, information on nearby clothing stores, shoe stores, accessory shops, and more will appear in a personalized way. Chief Leader Choi said, "For example, in the case of the handmade shoe street, if discount information is also provided, personalized matching becomes possible," adding, "There are product and discount information, but business owners and users didn’t know how or to whom to convey it; we can appropriately connect them." Regarding the service launch, Smart Around Leader Kim Jin-ho explained, "We will first introduce shopping information within this year and plan to expand content later."

Expansion into Japan is also under consideration. Chief Leader Choi said, "In Japan, the offline market is thick and strong to the extent that discount coupons are widely distributed at airports. This is good material for Smart Around," and added, "We are thinking about the synergy where user data is well utilized through Japan Line Pay and Smart Around’s technology is incorporated to provide assistance."

◆"Changing the lives of small business owners"= Chief Leader Choi and Leader Kim cited providing a large number of partners and promotional opportunities to small business owners as their greatest achievement over the past year and a half. Chief Leader Choi said, "A Japanese-style pub owner once told me that if their Naver search ranking falls outside the top 9, their monthly sales drop by 500,000 to 1,000,000 KRW," explaining, "That much, small business owners find it difficult and desperate to be in the top 10 of Naver search." In that regard, Smart Around can be an opportunity for small business owners. Chief Leader Choi added, "Because it is location-based, the probability of visits or reservations is more than 50% higher compared to search, so business owners are highly satisfied and small business owners like it."

Above all, for Smart Around to continuously provide high-quality services, active participation from small business owners and users is important. Chief Leader Choi advised, "Above all, there must be sufficient descriptions of the stores, and users need to write accurate reviews," adding, "Rankings are ultimately created by users."