Buy Electronics Installments Free When Purchased at Mart... 'Mission to Revive Offline'

Emart's 'E-Word Event' Effect

Lotte Department Store Significantly Lowers VIP Customer Qualification

Amorepacific, 10% Discount + 10% Mileage

[Asia Economy Reporter Lim Hye-seon] "If you spend a certain amount at the mart, we will pay your appliance installment fees instead."

The distribution industry has entered a competition to attract customers with 'generous benefits.' They are implementing various marketing strategies to increase repurchase rates by attracting customers who have been scarce due to the impact of the novel coronavirus disease (COVID-19).

Emart announced on the 13th that starting from the 16th, it will hold the customer attraction program 'E-Word Cashback' event (photo) for the first 1,400 customers at 140 Emart stores nationwide and 9 Electromart stores. The E-Word program allows customers to participate by visiting the store, filling out an application form, and purchasing eligible home appliances through Hyundai Card installment service registered on SSG Pay. If the amount spent shopping at Emart with Hyundai Card exceeds a certain level, the monthly installment fee for the corresponding appliance will be fully credited the following month. Among the 25-month installment period, the first month's installment fee is credited unconditionally regardless of achieving the shopping commitment. The eligible products include four popular appliances: 'SK Magic Dishwasher,' 'Bodyfriend Massage Chair Konik,' 'iPhone 11 Pro 256G,' and 'Coway Ice Hot & Cold Water Purifier.'

The reason Emart is conducting installment fee credit marketing is to expand its offline loyal customer base. The strategy is to capture new customers and those who shop less frequently by offering large-scale benefits that cannot be experienced at online shopping malls like Coupang. Emart has set this year's customer attraction keyword as 'Lock-in.'

The effect is positive. In the E-Word event held earlier in February, the 300 UHD TVs prepared in advance sold out early, prompting an urgent supply of an additional 700 units. Notably, it was encouraging that not only new customers and those who shop infrequently but also lapsed customers who had been scarce were re-attracted. According to Emart, the proportion of new and dormant customers who started regular consumption through E-Word increased from 20% last year to 30%. The average monthly spending amount and purchase frequency of general customers at Emart also increased nearly threefold after participating in E-Word compared to before participation. The cashback achievement rate of participating customers reached about 80%, indicating a high proportion of customers receiving actual cashback benefits. Choi Hun-hak, Executive Director of Emart Marketing, said, "There is high response because popular home appliances with high consumer purchase intent are offered at affordable prices along with cashback rewards," adding, "We will strengthen offline customer attraction by developing various forms of promotions."

Lotte Mart also conducts generous discount events such as selling 10 antibacterial masks for 4,900 won every week at 9 a.m. exclusively for registered members. Lotte Department Store has lowered the VIP barrier from this month and implemented a short-term excellent customer care system. Even without an annual purchase record of tens of millions of won, customers can become Lotte Department Store VIP members if they meet six purchase days and 1.5 million won in purchase amount within three months. Benefits include a permanent 5% discount when paying with a Lotte Card, 3 hours of free parking at affiliated stores, and 10 free drinks per month at the VIP bar.

The cosmetics industry, struggling due to a decrease in Chinese customers, is also joining in with generous benefit events. Amorepacific offers a 10% discount and 10% mileage to members across all brands. If customers purchase over 600,000 won, they receive an immediate 60,000 won discount and an additional 60,000 won mileage credit. An Amorepacific store official said, "Sales during the weekend from the 10th to 12th increased by more than 10% compared to the previous week."