Changes, Innovation, and Future Competitiveness Emphasized for 'New Lotte'
"Crisis Response Capability Is Shinsegae's Competitiveness This Year"
Hyundai Department Store Group Focuses on Finding 'Our Own Path'
[Asia Economy Reporter Kim Yuri] Marking the Year of the Black Rabbit, the Gyemyo Year, major retail companies such as Lotte, Shinsegae, and Hyundai Department Store Group emphasized change, innovation, and leap forward as their core competencies. Retail companies unanimously agreed that to secure competitiveness amid the deepening concerns of an economic downturn in 2023, it is essential to face risks head-on, possess crisis response capabilities, and carve out 'our own path.'
On the 2nd, Lotte Chairman Shin Dong-bin highlighted continuous change and innovation and the creation of future competitiveness for a 'new Lotte' in his New Year's address. Chairman Shin said, "We are in an era of permanent crisis with market volatility and uncertainty higher than ever worldwide. At times like this, we must reflect on the things we have taken for granted and old habits. Let us continuously change, innovate, and challenge together to create a 'new Lotte.'"
Chairman Shin emphasized, "To secure future growth engines in new areas, we must have the will to break out of existing frameworks rather than merely focusing on improving performance." He also urged, "With a long-term perspective looking 10 or 20 years ahead, please consider ways to enhance corporate value, transform customers' lives, and make our society better." He added, "Even in an uncertain future, if we pool everyone's wisdom and capabilities, we can create irreplaceable competitiveness in the rapidly changing global market." He also stressed the importance of a corporate culture that fosters a dynamic mindset and flexible thinking.
Shinsegae Group Vice Chairman Chung Yong-jin said that crisis response capability will be the key competitiveness this year. Vice Chairman Chung pointed out that retail businesses, which have significant customer contact, will face greater crises in the era of high inflation, high exchange rates, and high interest rates, and urged a return to 'basics' especially at times like this. He urged, "Focus fanatically on the customer." This phrase was first used by Vice Chairman Chung in his 2020 New Year's address and has been emphasized again in 2021 and now for the third time this year. He stressed, "By focusing fanatically on customers, we can strengthen the experience and value of existing businesses, find clues for future new businesses, and expand the Shinsegae universe more broadly and rapidly with customer support."
He also said, "Communicate with customers through products and services." Vice Chairman Chung explained, "Department stores should offer brands with high standards and value; Emart should provide customers with a rich daily life through good quality and low-priced products; Chosun Hotel should deliver dignified services; and Starfield should continuously present enjoyable experiences." He also called for a change in the perspective on crisis response. He emphasized, "We must sincerely review the crises that have occurred and improve response methods to prevent recurrence. When we stay true to basics and essence, risks and crises will become assets for a leap forward."
Hyundai Department Store Group Chairman Chung Ji-sun urged focusing on finding 'our own growth path.' Chairman Chung stated, "We are facing a turbulent era where uncertainties in the internal and external business environment are intensifying due to global economic recession, inflation, and demand slowdown, and the cycle of business paradigm changes is accelerating. However, based on the resilience to overcome crises, we must strengthen customer trust and find our own growth path rather than following the paths others take."
Chairman Chung said, "There will be trial and error in the process of pursuing Vision 2030, but let us not be discouraged and proceed with speed by supplementing plans." He emphasized, "Let us take Winston Churchill's words, 'Success is the ability to go from failure to failure without losing enthusiasm,' as a New Year's resolution and make 2023, which begins anew, a successful year preparing for a greater leap after the crisis." To this end, Chairman Chung proposed three core values for practice: ▲ being faithful to the most fundamental values and purposes, ▲ discovering optimal value through 'reframing,' and ▲ pursuing growth based on bold challenges by members and internal and external partnerships.
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