Lotte Homeshopping Forms CEO-Direct TF
Industry's First 'Gwangclejeol' Sees 1 Million Orders in Five Days
Surpassing Home Shopping Limits Focused on TV and SMEs
Online Brand Day Events Coming This Year-End
Big Smile Day, Sibaljeol, Ssuk Day, Lotte On Sesang, etc.
[Asia Economy Reporter Cha Min-young] Large-scale brand shopping festivals centered on e-commerce channels, such as '00 Day' and '00 Festival,' have also appeared in the home shopping industry. It is expected to become a new survival strategy for the home shopping industry, which has been struggling between online and offline channels, as it can rapidly amplify consumer interest, especially among the MZ generation (a combination of Millennials and Generation Z).
Home Shopping Industry's First Brand Day 'Gwangclick Festival'
According to the industry on the 23rd, Lotte Home Shopping achieved a cumulative order of 1 million over five days from the 16th to the 20th through 'Gwangclick Festival,' a large-scale brand discount event introduced for the first time in the industry. The average daily number of orders increased by more than 50%, with TV home shopping orders rising over 100% and mobile orders increasing by more than 60%. Notably, orders from customers in their 20s and 30s accounted for 43% of the total, marking success in attracting young customers, a common challenge in the home shopping industry. The event featured bold luxury deals, a 'Dyson' brand discount event, sales of affiliated hotels, and exceptional membership 'Elotte' point accumulation benefits.
'Gwangclick Festival' is one of the key projects promoted by Lee Wan-shin, CEO of Lotte Home Shopping. To introduce a brand shopping festival to the home shopping industry, which previously had no large-scale discount events, a dedicated task force (TF) was formed. Three executives, including Kim In-ho, head of the Digital Transformation (DT) division, and 11 team leaders from online, mobile, and TV sectors collaborated closely. CEO Lee emphasized to the TF members, "The era of competing solely through TV home shopping is over," and stressed, "We must advance into an integrated media commerce group through digital transformation, including online and mobile." This led to the creation of 'Gwangclick Festival.' The term 'Gwangclick,' commonly used online, also reflects the commitment to digital transformation.
The reason 'Gwangclick Festival' is attracting attention lies in the structure of traditional home shopping companies. Since they mainly handle small and medium-sized enterprise brands, individual negotiations are difficult, and the typical low-margin, high-volume sales model does not yield high profitability relative to the average transaction value. Because home shopping companies operate on a commission-based business model, it is challenging to fully adopt the strategies of online and offline channels that lower prices through advance direct purchasing. A home shopping industry insider said, "Due to high volatility and the focus on small and medium-sized enterprises, it is not easy to conduct large-scale pre-planned events," adding, "The industry is watching with curiosity whether such attempts can continue."
LG Household & Health Care's 'Alibaba Singles' Day Participation' advertisement video displayed on major large electronic billboards in downtown Seoul on the 19th
The original model for 00 Festival and 00 Day is Alibaba Group's Chinese version of Black Friday, 'Singles' Day (November 11).' Last year, the daily transaction volume reached about 268.4 billion yuan (approximately 44.6 trillion KRW), a 25.7% increase from the previous year. It is a marketing strategy designed to boost sales and attract customers during regular holiday seasons like Chuseok or Lunar New Year, when online mall sales tend to decline. It strengthens the brand position of specific channels and facilitates favorable deals with manufacturing partners through advance direct purchasing.
As the year-end approaches, fierce competition between online and offline channels is expected to recover sales that were hit by the COVID-19 pandemic. eBay Korea, which first launched 'Big Smile Day' in 2017, began its 'teaser promotion' ten days before the main event this November. Lotte Shopping will also hold the 'Lotte On(on) World' event for 10 days starting on the 23rd, involving seven companies including department stores, marts, supermarkets, and Hi-Mart. 11st's annual largest event, 'Sibilsal' (November 11), is also on standby. Shinsegae Group plans to expand the scale of 'Korea SSG Day,' first attempted last year, and hold it on the 31st. Seventeen affiliates, including the integrated mall SSG.com, Emart, Shinsegae Department Store, Shinsegae Property, Shinsegae International, and Shinsegae TV Shopping, will participate.
A major e-commerce industry insider said, "Since sales were severely impacted by COVID-19 this year, companies are offering bold benefits," adding, "We are particularly watching how large offline-based companies like Lotte and Shinsegae will act to strengthen their online presence."
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