Strengthening Customized Benefits for MZ Generation with Expanded Consumption Areas
[Asia Economy Reporter Yuri Kim] Lotte Homeshopping announced on the 4th that it will launch 'Y.CLUB,' a paid membership exclusively for the MZ generation (Millennials + Generation Z) aged 20 to 39, offering customized benefits starting on the 5th.
Lotte Homeshopping was the first in the industry to launch a paid membership, L.Club (630,000 members), in 2018. In 2019, it introduced the premium L.Club for the top 1% (4,500 members, operated annually for 1,500 members) and the Heritage L.Club for middle-aged customers in their 50s and 60s (300 members, operated annually for 150 members). It explained that it has now launched the industry's first paid membership exclusively for the MZ generation, who have recently emerged as a key consumer group emphasizing value consumption, to secure loyal customers. Considering that about 30% of existing L.Club members are in their 20s and 30s, and that new customers in their 20s and 30s grow by about 10% annually, the membership plans to provide basic shopping benefits as well as exclusive services tailored to lifestyles such as finance and leisure.
Y.CLUB targets customers aged 20 to 39, with a membership fee of 50,000 KRW. Benefits include a welcome gift (70,000 KRW in points, a voucher for a cake or wine at Lotte Hotel, or a Charlotte package at Lotte Cinema?choose one), up to 15% discounts, free shipping, L.Point accumulation on purchases, a 100x points accumulation event during the Gwangcle Festival, and Y-exclusive special sales. The total value of all services provided to Y.CLUB members amounts to over 300,000 KRW annually.
The first pre-registration for 1,000 members on a first-come, first-served basis, held on the 16th of last month, was quickly filled on the opening day due to various benefits such as the 'Y.CLUB Bellygom NFT giveaway' and 'iPhone 14 raffle.' The second pre-registration is ongoing until the 4th, with over 2,000 members currently signed up. In the future, Y.CLUB benefits will be expanded into MZ generation-exclusive services linked with Lotte Group affiliates in finance, culture, and leisure. Existing membership services will also continue to be offered with the best customized benefits by further segmenting customer shopping tendencies based on big data analysis.
Shin Sung-bin, Head of Marketing at Lotte Homeshopping, said, "We planned a customized paid membership to secure loyal customers from the MZ generation, who are emerging as the main consumers." He added, "Reflecting the lifestyle of the MZ generation and diversifying the range of benefits have received positive responses even before the launch. We will continue to meet their needs through membership operations that reflect purchasing tendencies and trends."
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