Lotte Mart to Unveil 'The Jamsilche' on Next Month 2
Judges No Chance in Ultra-Low Price Chicken Game
Mobilizing All Efforts to Secure Loyal Customers Including MZ Generation
Lotte Mart has put forward a strategy this year to focus entirely on 'loyal customers' instead of 'discount hunters' who roam various channels looking for ultra-low-priced products. In particular, it plans to put more effort into securing loyalty from the MZ generation (Millennials + Generation Z) to transform into a younger, trendier mart.
On the 6th, Lotte Mart announced, "We consider not only food but everything that reaches customers as a medium through which Lotte Mart communicates with its customers, and we will unveil the newly developed corporate typeface 'The Jamsilche' on the 2nd of next month." The development of the typeface took 10 months. It is explained that the design incorporates the historical significance of Jamsil, which embodies Lotte's heritage, as well as the young and newly changing image of Lotte Mart. It was developed not only in Korean and English but also in Vietnamese and Indonesian, languages of countries where Lotte Mart operates overseas.
The ultimate goal is to expand loyalty among the MZ generation. The main target of the typeface is university students and office workers in their 20s and 30s, who are generally distant from the typical large mart customer base. Lotte Mart said, "We hope that customers of various age groups, including those in their 20s and 30s, will come closer to and become familiar with Lotte Mart," adding, "To this end, we actively reflected the opinions of MZ generation employees during the development process." Lotte Mart plans to apply The Jamsilche to all customer touchpoints, including in-store promotional materials, signage, price tags, the official website, and the 'Lotte Mart GO' application (app). The typeface will also be used on documents, business cards, and employee IDs used by Lotte Mart employees.
Lotte Mart's activities targeting the MZ generation began in earnest last year. Since last year, led by MZ generation employees, Lotte Mart has been conducting the 'Gwan-sim Geup-gu Project' to discover unique customer experiences. They operated a wine bar where signature wines can be enjoyed in a hip atmosphere and pre-launched the high-end Korean beef brand 'Marble Nine' through omakase favored by those in their 20s and 30s, attracting attention from MZ generation customers.
Kang Sung-hyun, CEO of Lotte Mart (left in the photo), is giving a greeting at 'The New Lotte Grocery Day' last November. Photo by Lotte Mart.
This year, Kang Seong-hyun, who took charge of both Lotte Mart and Lotte Super, emphasized in his 2023 message to employees that "marketing should focus on loyal customers." This is based on the judgment that consumers are no longer swayed by price alone. He ordered a bold abandonment of the 'bargain hunter' group who come only for discount events and a full mobilization of capabilities to expand loyal customers.
Efforts to make the MZ generation recall Lotte Mart in their daily lives and approach it more familiarly through The Jamsilche and other means are part of the mid- to long-term strategy to secure loyal customers. Every time customers purchase at Lotte Mart offline stores, the points called 'Snow Points' accumulated in the Lotte Mart GO app are also expected to be actively utilized this year. The strategy is to increase loyalty by attracting young customers, proposing items they truly need, and using a point system where benefits grow the more points are used.
Over the past two years, Lotte Mart has undergone structural reforms and other improvements while pursuing a renewal strategy to completely revamp everything, including store renovations. Last year, it succeeded in turning operating profit positive. Despite concerns about an economic downturn this year, Lotte Mart plans to improve its gross profit margin by 1% through securing loyal customers from the MZ generation and other efforts. Kang said, "Although 2023 is expected to be a difficult year, there has never been an easy year," adding, "With the organizational atmosphere becoming more horizontal and proactive, we believe we can improve performance this year as well."
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