Securing Leadership in Online Food Market... SSG.com Sets New Strategy

CEO Kang Hee-seok's Major Organizational Restructuring
Maximizing Online and Offline Synergy
Establishment of Data Infrastructure and Operations Headquarters
For AI-Based Customized Shopping
Full-Scale Big Data Analysis Initiated

[Asia Economy Reporter Lim Hye-seon] Kang Hee-seok, the new CEO of SSG.com, is embarking on a major organizational restructuring to solidify its position as the leading player in the domestic grocery online market. The plan is to maximize the 'online-offline synergy' to maintain the top spot in the grocery sector.

According to the distribution industry on the 2nd, SSG.com's food transaction volume is expected to reach 2 trillion KRW this year. It holds the number one position with about 8% market share in the domestic online food market. SSG.com is also expected to easily achieve its target transaction volume of 3.6 trillion KRW this year. As a latecomer, it has firmly established itself in the market.

Following a recent executive reshuffle, CEO Kang implemented an organizational restructuring. The Data Infrastructure Headquarters, led by Director Jang Yoo-sung, and the Operations Headquarters, led by Director Kwak Jung-woo, were newly established. The overall organization was reorganized from the previous structure of 1 headquarters (Sales Headquarters) and 6 departments into 4 headquarters (Data Infrastructure Headquarters, Operations Headquarters, New Business Headquarters, Support Headquarters), simplifying the entire organization and significantly increasing the authority of each headquarters. The Data Infrastructure Headquarters consists of five departments including data, platform, and service, while the Operations Headquarters is composed of six departments including grocery curation and logistics, clearly defining responsibilities.

Director Jang, who oversees 300 employees, is tasked with equipping the company with data technology capabilities that can compete with online giants like Coupang and Naver. SSG.com's greatest advantage is its offline (Emart) based customer database. They are building a platform suitable for analyzing data to optimize customer needs and identify and improve customer complaints. Director Jang was a founding member of the natural language-based knowledge engine 'Wolfram Alpha' and planned AI services as the head of the mobility business unit at SK Telecom.

SSG.com is first focusing on big data analysis for personalized shopping based on artificial intelligence (AI). They are enhancing demand forecasting methods that minimize errors and find optimal delivery routes using machine learning technology.

Leveraging the offline experience of Emart stores, they are concentrating on data utilization and technological efforts to deliver the freshest products to the right place at the right time. To maintain product freshness and ensure fast delivery?key factors in refrigerated logistics innovation?they are automating logistics systems and conducting multifaceted research to quantify and express freshness.

Director Kwak, who led performance improvements at Emart, is strengthening 'one-stop shopping' where customers can complete purchases of various products?from groceries to luxury goods and books?on a single site. To provide the best service in the grocery sector, they plan to transplant Emart’s fresh food expertise into SSG.com and focus on increasing synchronization with Emart products. Although Coupang and eBay Korea also sell food products, it is difficult for them to match Emart in terms of product pricing, cost calculation, and freshness. The role of Executive Director Kim Beom-su, who joined to strengthen curation, is also significant. For consumer purchases to occur amid an information overload, the composition of product recommendations and suggestions is important. Until now, online MDs under the product headquarters handled product curation. An SSG.com official said, "We will create synergy with Emart offline stores and highlight service strengths that are difficult for other e-commerce companies to offer."

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