GS Links Wine Orders with KakaoTalk Gifts
CU Partners with Kurly for Pickup Service
7-Eleven Prepares Prepayment for Junggonara
The convenience store industry is strengthening its O4O (Online for Offline) strategy. This is interpreted as a measure to overcome the saturated market situation and to attract consumers who have become accustomed to the online distribution environment back to offline stores.
GS Retail recently signed a strategic partnership agreement with Kakao Commerce CIC to strengthen their O4O strategy. [Photo by GS Retail]
According to the industry on the 12th, GS Retail, which operates the convenience store GS25, signed a strategic partnership with Kakao Commerce CIC the day before, focusing on strengthening the O4O strategy. Through this partnership, GS Retail plans to launch a service linking GS25's alcoholic beverage smart order platform Wine25Plus with KakaoTalk Gift. Once the service is launched, consumers will be able to purchase alcoholic beverage products through the Wine25Plus channel within KakaoTalk Gift and receive the products at a nearby GS25 store on their desired date.
GS Retail's move is closely related to the saturated market environment. With stores popping up like mushrooms, the number of convenience store outlets in Korea is estimated by the industry to have reached 60,000. This structure inevitably leads to a gradual decrease in operating profit per store. This is also the background behind the industry's repeated considerations of the 'future-type convenience store.'
It is also analyzed that this aligns with the market trend where the importance of combining online and offline is increasingly emerging. The convenience store industry has become accustomed to fast delivery services like Coupang's Rocket Delivery, which rapidly grew before and after COVID-19. As services that deliver products, which previously required going out to buy, directly to the doorstep have become common, the biggest strengths of convenience stores?accessibility and convenience?have been neutralized. Convenience stores needed an alternative 'weapon' to attract customers again, and O4O emerged as one of the solutions.
BGF Retail, which operates CU, has also started its O4O strategy. Earlier, in July, BGF Retail signed a business agreement with Kurly to 'promote joint business based on online and offline platforms,' expanding online ordering and offline pickup services. Seven Eleven is also aiming to open a prepaid parcel delivery system within Junggonara early next year. The core of this system is to enhance convenience by allowing consumers to store items immediately upon visiting the store without additional procedures through prepaid parcel fees. Emart24 is implementing the O4O strategy through its own mobile app, where customers can check inventory, make prepayments, or reserve products before visiting the store.
Industry insiders predict that O4O services will become more active in the future, including expanding partnership areas. An industry official said, "O4O services are positive in that they increase customer touchpoints and promote ease of use," adding, "The strategy to maximize synergy by connecting online and offline is expected to continue strengthening."
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