Korea Deloitte Group Launches Retail Consumer Goods Innovation Group

The new logotype unveiled by Deloitte Anjin.

[Asia Economy Reporter Park Jihwan] Deloitte Anjin Accounting Corporation, along with the Korea Deloitte Group, announced on the 1st the launch of the Retail Consumer Goods Innovation Group to lead the paradigm shift in the retail industry in response to unprecedented changes in the business environment. The Retail Consumer Goods Innovation Group is a specialized organization composed of experts in various fields such as management strategy, real estate, logistics, HR, finance, and taxation, providing end-to-end services from strategy formulation to execution for business transformation of retail consumer goods companies.

Since the amendment of the Distribution Industry Development Act in 2012, which restricted the operation of large stores, the rapid increase of single-person households, and the rise of e-commerce dawn delivery have changed online shopping consumption trends, accelerating the crisis for traditional retailers. Online distribution, which accounted for 20.5% of total retail sales in 2012, increased by 8 percentage points to 28.5% in 2017 over five years, while the share of large marts and department stores fell sharply by 12.9 percentage points from 42.3% to 29.4% during the same period. Moreover, with the advent of the ‘untact’ society triggered by the global COVID-19 pandemic, a ‘new normal’ era of retail has opened where all generations are accustomed to online shopping, accelerating business transformation for survival.

The Retail Consumer Goods Innovation Group plans to provide end-to-end services covering organic retail business strategies between online and offline, logistics and supply chain management systems (SCM), and organizational structure. For companies suffering from liquidity crises and weakened financial soundness due to declining offline retail sales, the group aims to accelerate business transformation by securing funds through expanded financing and strengthening capabilities based on a strategy of expanding alliances through M&A, leading fundamental structural improvements.

Experts in the Innovation Group provide timely solutions at each business stage throughout the entire business process, from strategy formulation for reorganizing the business ecosystem to asset sales, M&A, supply chain improvement, and organizational restructuring. In addition to providing solutions, they establish best practices and methodologies for business transformation, enabling flexible responses to market conditions and development of derivative businesses to create new business areas. Notably, by introducing digital solutions in cooperation with Deloitte Global, they plan to propose digital marketing strategies targeting customized customers by securing accurate customer data even in supermarkets and traditional markets, which had lagged behind in online shopping competition in terms of customer information data acquisition and utilization.

Jung Dongseop, leader of the Retail Consumer Goods Innovation Group at Korea Deloitte Group, stated, "If the past decade was a time spent struggling to survive competition with online distribution, the next decade should focus on business transformation through fundamental structural improvement." He added, "We plan to provide comprehensive services from strategy formulation to execution to revitalize the domestic retail consumer goods industry with high growth potential and to support retail consumer goods companies in transitioning to a new paradigm."

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