LGU+ Strengthens Contactless Distribution with Live Commerce, Unmanned Stores, and Bullet Delivery

'Post-Corona' Era Strategy
Industry's First Introduction of 'Live Shopping'
Activation Wherever Customers Want
Introduction of Self-Activation Customized Kiosk

[Asia Economy Reporter Koo Chae-eun] LG Uplus is gradually expanding unmanned stores where 'self-activation' is possible. Customers will be able to purchase smartphones and communication plans through real-time live broadcasts similar to home shopping. The service of bullet delivery, which delivers smartphones ordered directly to customers' homes, will also be enhanced. This is a measure to strengthen non-face-to-face distribution strategies in the 'post-COVID-19 era.'

Strengthening Distribution Strategies such as Bullet Delivery and Self-Activation

On the 30th, LG Uplus held a press conference at its headquarters in Yongsan-gu, Seoul, and announced the 'Untact and Digital Channel Innovation Plan,' which includes these contents. This is a measure to expand customer touchpoints as sales of mobile phones through face-to-face services have decreased due to the prolonged COVID-19 pandemic. The core points can be summarized as ▲live shopping ▲introduction of kiosks ▲bullet delivery service ▲expansion of partner distributors.

First, LG Uplus will introduce 'live shopping,' which sells products while responding to customer inquiries like TV home shopping, for the first time in the telecommunications industry. 'U+Shop Live,' operated on the online direct mall U+Shop, will be held every Tuesday and Friday at 8 p.m. When purchasing a smartphone from U+Shop, a consultant visits the customer's desired place and time on the same day to activate the service. A 'pickup service' is also provided, allowing customers to receive smartphones purchased from U+Shop at a nearby store on the day of the order. To enable non-face-to-face self-activation, an unmanned terminal system kiosk will also be introduced. The U+ Kiosk allows customers to activate a USIM card using a credit card and mobile phone text authentication and is scheduled to be distributed to experience stores in September. LG Uplus has also introduced a 'U+Shop exclusive partnership pack' to expand the base of online subscribers. Discount coupons usable at Gmarket, Market Kurly, Auction, KakaoT, GS25, etc., will be provided monthly for one year, ranging from 6,000 KRW to 15,000 KRW depending on the plan.

Responding to Changing Consumption Patterns Due to COVID-19

LG Uplus's change in distribution strategy is a measure to respond to the market stagnation caused by COVID-19. According to the Korea Telecommunications Operators Association (KTOA), the number of mobile number portings last month was 474,405, down by 18,613 from the previous month. SK Telecom saw a net loss of 3,909 subscribers, KT lost 861, and LG Uplus lost 368 subscribers. The number of number portings is an indicator of the activation level of the telecommunications market. Due to COVID-19, people refrained from going out and avoided face-to-face activities, significantly reducing the number of customers visiting stores to purchase mobile phones. Accordingly, LG Uplus aims to turn this crisis into an opportunity by expanding non-face-to-face services and providing distribution services suited to the changed consumption patterns. Park Jun-dong, Head of Strategy Channel Group (Executive Director) at LG Uplus, said, "We will strengthen customer benefits in line with the recent trend of online purchases and provide customers with a new experience in purchasing telecommunication services." Kim Nam-soo, Executive Director in charge of Digital Channel Business at LG Uplus, explained, "The changed distribution consumption patterns due to COVID-19 will bring many changes to the domestic telecommunications market. The U+ Kiosk will be installed first in areas with high foot traffic such as Gangnam and Daehak-ro."

Meanwhile, LG Uplus is expected to achieve nearly a 40% operating profit growth in the second quarter, an 'earnings surprise,' thanks to the 5G marketing effect last year and balanced growth in wired, wireless, and media sectors, in addition to securing B2C customers. According to FnGuide, LG Uplus's expected sales for the second quarter are 3.3641 trillion KRW, a 5.1% increase compared to last year, and the expected operating profit for the same period is 209.9 billion KRW, a 41.25% growth. LG Uplus is scheduled to announce its second-quarter earnings on the 7th.

This content was produced with the assistance of AI translation services.