On the 17th, Lee Hyori's main advertisement released
New subscribers increase and excellent buzz
Marketing accelerated thanks to improved performance
As the domestic e-commerce industry moves toward business efficiency by eliminating exclusive advertising models, the opposing move by industry 'latecomer' Lotte ON is drawing attention. Following the selection of top star Lee Hyori as its exclusive advertising model, the company is solidifying its position within the industry by launching the vertical service integrated membership 'On and the Club' and maintaining its momentum.
Lotte ON will hold the 'Brand Fantasy' event with the biggest benefits ever, along with a full-scale advertising campaign until December 3. [Photo by Lotte ON]
On the 17th, Lotte ON announced the release of the full version of the 'Shopping Fantasy' advertisement video, marking singer Lee Hyori's return to advertising after 10 years and her first collaboration, while kicking off the largest-ever shopping event, 'Brand Fantasy.' Shopping Fantasy is an event introducing the greatest benefits ever, including discounts, additional points, and exclusive products from 150 brands, rotating three brands daily, and will run for 50 days until December 3. Along with the event launch, the official Shopping Fantasy advertisement video featuring Lee Hyori, lasting 2 minutes and 54 seconds, was also released. The video depicts Lee Hyori in a red leather coat with dark smoky makeup, where a 'click' sound turns on a switch, signaling the start of serious shopping time. The video surpassed 200,000 views within a day of its release, and the number of new sign-ups to the Lotte ON application (app) significantly increased following the advertisement.
A Lotte ON representative said, "Since the teaser video release, the response has been explosive not only from women in their 30s and 40s who hold nostalgia for Lee Hyori but also from women in their 20s who have come to know her through variety shows," adding, "We plan to focus our advertising efforts on social networking services (SNS) and online platforms over the next two months."
Since the endemic phase, the domestic e-commerce industry has trended toward not having exclusive models but selecting models only for specific categories and services. For example, SSG.com ended contracts with actors Gong Hyo-jin and Gong Yoo, who had been models for the past seven years, and decided not to renew them earlier this year. Currently, actor Son Seok-gu is active as the advertising model for the 'Shinsegae Universe Club,' which covers benefits from six Shinsegae affiliates, including Shinsegae Department Store, duty-free shops, and E-Mart. 11st also has not contracted a separate advertising model since actor Lee Seon-ho two years ago. However, singer Kim Jo-han, musician Muzzy, and actor Joo Hyun-young are active as advertising models for the 'Shooting Delivery' service. Gmarket and Coupang also do not have exclusive advertising models.
The background behind Lotte ON's choice of this opposing move appears to be the judgment of 'striking while the iron is hot.' Launched in April 2020 as a latecomer in the industry, Lotte ON has shown sluggish performance despite the strong Lotte brand, a traditional powerhouse in distribution, due to fierce competition. However, by establishing four specialty stores?Beauty (April last year), Luxury (September last year), Fashion (November last year), and Kids (April this year)?and specializing in consumer-tailored services, it began significantly reducing its deficit from the third quarter of last year. Lotte ON's operating loss in the second quarter of this year was 21 billion KRW, a 44.7% decrease compared to 38 billion KRW in the third quarter of last year, and sales increased by 44% to 36 billion KRW from 25 billion KRW in the third quarter of last year.
Going forward, Lotte ON plans to strengthen the services and benefits of On and the Club, which expands membership benefits from the existing beauty specialty store to four specialty stores, and accelerate advertising collaboration with Lee Hyori. A Lotte ON representative said, "Lotte ON is currently experiencing a good trend in sales and operating profit, and we thought it was important to leave a strong impression on many consumers through aggressive marketing and services at this time," adding, "We will strengthen our position within the industry not only through the advertising synergy effect with Lee Hyori but also with richer in-house services."
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