Partnering with YouTubers, Increasing 'Labang'... Retail Industry's Crucial Battle to Capture MZ Generation

[Asia Economy Reporter Seungjin Lee] The distribution industry is making efforts to capture the MZ generation (Millennials + Generation Z). They plan to leverage digital consumption cultures familiar to the MZ generation by increasing unique collaborations with YouTubers and expanding live broadcasts.

According to the distribution industry on the 16th, Lotte Department Store will expand non-face-to-face live broadcasts by more than 40%. As the number of customers visiting department stores sharply declined due to the COVID-19 pandemic, they aim to find a breakthrough through mobile shopping channels.

Lotte Department Store is revamping its mobile live broadcast channel '100LIVE' and plans to increase the number of broadcasts per month by more than 40% compared to the previous year. Since its debut two years ago, 100LIVE has steadily grown. The number of broadcasts, which was only 30 times per month at the time of its opening in December 2019, increased sixfold to 180 times in December last year. The goal for this year is '300 times per month.'

Lotte Department Store plans to add entertainment elements by recruiting panels such as YouTubers to existing content and introduce live broadcasts that bring vitality to non-face-to-face shopping through visits to production sites.

SSG.com, the integrated online mall of Shinsegae Group, is strengthening 'V-commerce' (sales using video content) by selling products planned by YouTubers. Last year, SSG.com collaborated with CJ ENM's one-person creator support project 'DIA TV' to exclusively sell products planned by YouTube creators.

This month, they broadcast live the 'Good Kimchi-Making Project Hong Sonagi Kimchi Special Forces' episode on their own live commerce channel 'SSG Live' together with the famous food creator 'Hong Sonagi.' All these efforts aim to expand contact points with the so-called MZ generation familiar with video media and attract young customers.

The convenience store industry is competing by recruiting figures familiar to the MZ generation, such as YouTubers and actors.

Seven Eleven partnered with actress Kim Sumi to launch a healing concept lunchbox called ‘Sumine Bapmeokja Yaedeura’ that supports the 2030 generation. This lunchbox was planned to encourage the 2030 generation who are facing many difficulties such as employment and recession due to the prolonged COVID-19 situation. In August last year, Seven Eleven appointed Kim Sumi, who has become a home meal icon, as the Seven Eleven ‘Taste’ ambassador, entrusting her with recipe development, food taste evaluation, and advisory roles.

GS25 introduced ‘Usamgyeop Deopbap’ and ‘Bigso Bulgogi Burger,’ jointly developed with YouTuber ‘Bapgubnam,’ who has 1.31 million subscribers. From the product planning stage to ingredient selection and production, ‘Bapgubnam’ participated in the entire process, reflecting his main broadcast content of ‘meat-eating practice’ where he grills meat directly over firewood and charcoal in the mountains.

CU launched the industry’s first ‘Jeju Chamjogi Jeongsik’ lunchbox using grilled yellow croaker in collaboration with the popular entertainment program ‘Matnam’s Plaza’ on the 10th. On the show, Baek Jong-won, CEO of The Born Korea, heard about the difficulties faced by fishing households with thousands of tons of frozen yellow croaker piling up due to the sharp decline in demand from existing sales channels such as school meals and restaurants caused by COVID-19, and proposed a convenience store lunchbox using yellow croaker to CU, leading to its release.

Previously, CU’s apple pie made using fallen apples in collaboration with ‘Matnam’s Plaza’ last year caused a sold-out frenzy immediately after its release and gained great popularity. It is currently ranked number one in ambient dessert sales.

Emart24 introduced the ‘Gogi Kukkuk Sandwich,’ jointly developed with famous mukbang YouTuber Shincook, who has 580,000 subscribers and introduces convenience store products on YouTube. Emart24 expects the Gogi Kukkuk Sandwich to attract the attention of the MZ generation and receive a positive response. Last year, products such as Kimchi Jeyuk Jumeokbap, launched in collaboration with the popular entertainment program ‘Delicious Guys,’ also gained high popularity.

A distribution industry official said, “Unique collaborations are a strategy to strengthen communication with MZ generation customers who lead digital consumption trends and further increase satisfaction,” adding, “Even if the sales of the launched products are not high, the continuous exposure and sharing of the brand online itself is a great advantage.”