"Let's Gather 'Future Customers'": Retailers Collaborate with Financial Companies

Differentiation Strategy in a Saturated Market
Collaboration with Finance Familiar to Young Generation
"Win-Win for Both Retailers and Financial Companies"

Convenience store GS25 recently partnered with KakaoBank to launch a savings product for teenagers. The service allows users to set savings amounts ranging from 500 won to 2,000 won, with a maximum savings limit of 52,000 won. GS25 plans to reward teenagers who successfully save consecutively with snack vouchers or discount coupons. A GS25 representative stated, "We collaborated with a financial company to provide fun experiences and benefits to our main customers, teenagers," adding, "We will continue to strengthen customer benefits through partnerships with financial companies."

Emart24 collaborated with KB Kookmin Bank to open a finance-specialized store in Bunpyeong-dong, Seowon-gu, Cheongju-si, Chungbuk. It is characterized by the installation of video consultation counters and smart teller machines, going beyond the simple installation of automated teller machines (ATMs).
[Photo by Emart24]

Distribution companies are strengthening marketing collaborations with financial institutions such as banks. Methods include jointly operating deposit and savings products or partnering on membership point programs. This is analyzed as utilizing financial companies, which have frequent consumer contact, as a channel to attract younger generations, who are future customers, and to differentiate stores.

According to the industry on the 11th, convenience store CU's savings product launched last month in collaboration with Pepper Savings Bank, offering up to 6% interest, was sold out with a 96% subscription rate. CU analyzed that this savings product not only created new customers but also had a customer attraction effect. A CU representative said, "In response to the high customer interest, we plan to steadily introduce other financial products in the future."

Earlier, competing convenience stores Seven Eleven and Emart24 also formed partnerships last year with DGB Daegu Bank and KB Kookmin Bank, respectively, to introduce finance-specialized stores. Finance-specialized stores combine existing convenience stores with bank branches, going beyond simply installing ATMs by including features such as video consultation counters and smart teller machines. Additionally, Emart24 collaborated with Shinhan Investment Corp last year to sell lunchboxes containing one share of popular U.S. stocks such as Tesla, Microsoft, and Apple.

Convenience stores are not the only ones partnering with financial companies. Supermarkets are also signing agreements with financial institutions and launching various marketing initiatives. For example, Shinsegae Group, which operates Emart, recently selected Toss as a partner for the financial sector of its newly announced integrated membership program, 'Shinsegae Universe Club,' and is promoting the partnership. By expanding membership benefits into the financial sector, Shinsegae Group expects to create synergy effects that enhance both business competitiveness and customer benefits. Homeplus is also collaborating with several card companies to hold weekly discount events. Recently, they have been selling seasonal products such as Samgyetang and watermelon at up to 40% discounted prices for the early summer season.

Experts analyze that the collaboration cases between distribution companies and financial institutions are the result of strategies aimed at attracting young customers. Professor Eunhee Lee of Inha University's Department of Consumer Studies said, "For distribution companies, it is necessary to appeal differentiation to young consumers in a saturated market environment," adding, "From the financial companies' perspective, it is effective to secure 'future customers' by forming familiarity beyond awareness of finance among the younger generation who visit convenience stores and supermarkets."