KT Partners with Paseco to Sell Window Air Conditioners
Diversifying Offline Store Usage
Collaborating on Smart Home Appliance Development
Transforming Profit-Declining Dealers into Experiential Spaces
[Asia Economy Reporter Cha Min-young] As the offline mobile phone market shrinks due to COVID-19, mobile carriers are diversifying the operation directions of their offline stores.
According to the industry on the 3rd, KT will collaborate with the comprehensive home appliance company Paseco to sell 'window-type air conditioners' at KT dealerships starting next month. In addition to air conditioners, they plan to increase sales with various home appliances.
KT plans to cooperate in developing smart home appliances by utilizing its artificial intelligence (AI) and digital transformation (DX) technologies. Paseco has already showcased technology that can control window-type air conditioners through AI smart plugs.
The three major carriers are seeking changes in offline retail stores. SK Telecom is attempting to transform offline stores into spaces for AI technology and new concept communication experiences. In Hongdae, the store is being used as an advanced base for the 'Virtual Social World,' where customers can experience virtual reality (VR) content. LG Uplus has increased the utilization of offline stores as spaces optimized for USIM issuance and budget phone services.
The main reason for these changes is the profitability issue of dealerships. Due to COVID-19, the profitability of carrier dealerships has declined. Especially, with active sales of unlocked phones through non-face-to-face channels, the position of offline distribution has weakened. Last year, Coupang launched direct dealerships by receiving dealership codes from LG Uplus and KT through the 'Coupang Mobile' service. SK Telecom operates online dealerships through 11st.
Seo Myung-hoon, chairman of the Korea Mobile Telecommunications Sales Association, also appealed, "In the difficult global COVID-19 environment, small and medium-sized retail sales points are struggling to sell even one unit per day."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
