Lotte Distribution Group Chooses Online and Offline Advertising Services as New Growth Engine

Retail Media Network (RMN) Business Concrete Plans
Partnership Agreement with Global Advertising and Marketing Company Epsilon

Lotte Retail Group announced on the 26th that it will concretize its Retail Media Network (RMN) business and nurture it as a new growth engine. This decision is based on the belief that the retail media environments of offline stores and online shopping mall channels owned by Lotte Retail Group can create synergy.

RMN is a business that provides advertising services not only through search bars and banners on online shopping malls but also across various channels in offline stores. It is described as a business sector that has established itself as a new trend because retailers can generate revenue in exchange for providing marketing services. Lotte Retail Group emphasized that global retailers such as Amazon and Walmart are also generating profits through RMN.

Lotte Distribution Group RMN Promotion TF employees are discussing the RMN integrated platform.
[Photo by Lotte Distribution Group]

Lotte Retail Group’s RMN is based on the online and offline channels of its affiliates and the customer traffic using them. The group plans to launch an integrated RMN platform for its affiliates within this year and build an environment that connects brands and consumers. The goal is to use this as a driving force to expand profitability and achieve continuous growth.

Lotte Retail Group integrates the media environments of online shopping malls and offline stores scattered across each business division such as department stores, marts, supermarkets, Lotte ON, Hi-Mart, and 7-Eleven to provide a customer-tailored shopping environment. To this end, it will establish an integrated online and offline RMN platform based on about 40 commerce and service apps visited by 25 million people monthly and more than 15,000 offline stores nationwide.

The integrated platform helps easily execute advertisements across various channels of Lotte Retail Group. Previously, advertisements had to be executed through separate contracts for each affiliate, but through the platform, advertising campaigns can be conducted on multiple channels and media with a single contract.

Additionally, by analyzing customer behavior, the platform will provide solutions to ensure advertisements are effectively delivered to consumers, enabling efficient cost execution. It will also build an environment capable of analyzing performance such as product exposure frequency, purchase counts, and profitability, as well as verifying efficiency.

Kwon Won-sik, Executive Director and Head of the RMN Promotion Task Force at Lotte Retail Group, said, "The global RMN market size is about 200 trillion KRW and has been growing significantly every year. Many global retailers are promoting RMN businesses to expand profitability. Lotte Retail Group plans to nurture RMN as a new growth engine for sustainable growth."

Meanwhile, to accelerate the RMN business, Lotte Retail Group signed a Memorandum of Understanding (MOU) last month with Epsilon, a U.S.-based marketing tech and ad tech solution company. Epsilon operates over 40 branches worldwide and is promoting RMN business through partnerships with major retailers.

Lotte Retail Group and Epsilon plan to collaborate on system development. John Giuliani, CEO of Epsilon, which signed the MOU, said, "We are pleased to develop an innovative Retail Media Network in cooperation with Lotte Retail Group. Through this partnership, we will combine Epsilon’s cutting-edge technology and data capabilities with Lotte’s retail expertise to provide consumers with new experiences."