Baseball Reaches the Top, Retail Sales Soar... Jung Yong-jin's Sportainment Succeeds

'Shinsegae Universe' Expanded with Landers... Jeong Yong-jin's Grand Slam

SSG Landers Win Regular Season, Postseason, and Korean Series Titles in Just 2 Years
Synergy with Core Business (Distribution) Realized Since Baseball Team Acquisition Announcement
Increased Merchandise Sales, Successful Landers-Linked Products and Events "Expanding Shinsegae Universe"
Evolving into a "Lifestyle Center" Where Customers Shop and Watch Baseball... Plans to Accelerate Investment

[Image source=Yonhap News]

[Asia Economy Reporter Yuri Kim] SSG Landers have clinched the championship trophy of the ‘2022 Shinhan Bank SOL KBO Postseason Korean Series.’ This marks a milestone just two years after the team's establishment. Jung Yong-jin, Vice Chairman of Shinsegae Group and the ‘Landers Club Owner,’ was lifted on the shoulders of players on the mound in celebration and expressed his joy on his social media with the message, “I want to receive this again next year, I’m addicted.” This victory was also meaningful as it came through a showdown against the Kiwoom Heroes, a team Jung had identified as one he “definitely wanted to beat” early on when acquiring the baseball team last year.

◆"Acquisition of the baseball team is business" - Emphasizing synergy with retail from the start

Right after the team’s founding in March last year, Vice Chairman Jung emphasized, “If you are passionate about baseball, you can connect it with our main business, retail, and accomplish many things.” He envisioned placing baseball viewing and shopping under one ‘leisure category’ and transforming the baseball stadium into a kind of ‘lifestyle center’ to expand customer experience. Over the past two years, under Jung’s leadership, the group has actively supported and invested in the team, creating an environment where players can focus on baseball, which has translated into strong performance and popularity. Group companies collaborating with the baseball team have also recorded good results, generating added value for the ‘core business.’

SSG Landers merchandise sales surpassed the total annual sales of 2019, before the COVID-19 pandemic, within just two months from April to May. This surge was driven by the release of new uniforms and the team’s strong performance, which encouraged fans to actively purchase merchandise. With E-Mart entering the merchandise market, sales of items beyond uniforms have also increased significantly. In April, E-Mart opened an SSG Landers merchandise shop at SSG Landers Field offering over 140 types of products not previously available at existing merchandise shops. Expanding sales channels beyond the stadium to nationwide E-Mart stores has led to continuous growth in sales volume. Monthly average food and beverage (F&B) sales at SSG Landers Field this year have also increased by 67% compared to 2019 and nearly doubled compared to 2018.

Synergy with the core business is also expanding. During ‘Landers Day’ from April 2 to 8, SSG.com sales increased by 30% compared to the previous week. The season’s uniforms sold out completely during a live broadcast of baseball team merchandise on SSG Live. From May 3 to 5, in collaboration with The Walt Disney Company, the ‘Star Wars Day’ event saw limited edition Star Wars uniforms sold through SSG.com sell out in about five minutes.

No Brand Burger, operated by Shinsegae Food, has continuously advertised through the scoreboard, TV, and mobile broadcasts at SSG Landers Field since the team’s founding. On home game days, the No Brand Burger SSG Landers Field store ranks first in daily sales among all stores nationwide. It has become a popular outlet visited by about 15% of the spectators. In May last year, when SSG Landers rose to the top tier of the regular season, sales at six No Brand Burger stores in the Incheon area increased by 11%. The Landers Snack line of ready-to-eat meals, launched in collaboration between Shinsegae Food and SSG Landers, has sold over 50,000 units within two months, averaging about 500 units daily. Online sales in the Incheon region accounted for the highest share at 37%.

[Image source=Yonhap News]

◆‘Yongjin hyung’s’ love for baseball expands the virtuous cycle of the ‘Shinsegae Universe’

Vice Chairman Jung viewed baseball performance and popularity as the fundamental premise for synergy with the core business and personally directed player support and infrastructure expansion.

Last year, Jung visited both the first and second team stadiums and, based on his belief that “good facilities produce good performance,” ordered facility improvements. In January, a roughly 500 million KRW air conditioning system was installed in the indoor training facility at SSG Futures Field, the second team’s stadium. In March, a full renovation of the clubhouse, home and away dugouts, and auxiliary facilities at SSG Landers Field was completed at a cost of about 4 billion KRW. This renovation, carried out over 10 months starting from Jung’s stadium visit, actively incorporated feedback from players and staff. The newly revamped SSG Landers clubhouse received high praise from players, who collectively described it as ‘Major League level.’

Players’ recognition of their own value increased their loyalty to the team, which in turn created a positive synergy effect that boosted team morale. Upon the team’s founding last year, SSG Landers made a surprise signing of Major Leaguer Choo Shin-soo, and this year signed Major Leaguer Kim Kwang-hyun, a franchise star since his SK Wyverns days, to a record-breaking 4-year contract worth 15.1 billion KRW. With Jung’s full support, SSG Landers also became the first in the league to sign multi-year contracts with three key players in their 30s and non-free agent players. This year, SSG Landers’ average annual salary is 270.44 million KRW, the highest among the 10 professional baseball teams, approximately three times that of the team with the lowest average salary.

Players’ boosted morale led to strong performance, which in turn increased attendance. Along with winning the regular season, SSG Landers became the first Incheon-based baseball team to rank first in regular season attendance among all KBO teams. The total attendance for SSG in the 2022 season was 981,546, with an average of 13,633 spectators per game.