Electronics Retailers Bet on Experiential Stores and Online Business Expansion

Countering Department Stores and E-commerce
Lotte Hi-Mart 'Mega Store'
10 More Locations to Open This Year
Diversifying Online Mall Business Too

[Asia Economy Reporter Lim Chun-han] Electronics retailers such as Lotte Hi-Mart and Electron Land have made bold moves by strengthening experiential stores and online businesses. This strategy aims to counter department stores that have recently been enhancing premium home appliances and e-commerce platforms that compete on price competitiveness.

According to Lotte Hi-Mart on the 24th, they plan to open about 10 additional Mega Stores within the year, adding to the current 15 locations. In particular, they intend to increase the proportion of premium color appliances that incorporate design elements and expand various home appliance experience spaces. Mega Stores are premium stores where customers can experience a variety of domestic and international premium brands, equipped with diverse cultural spaces such as a one-person media zone, Apple A/S center, interior consultation, and cafes. The Mega Store Jamsil branch saw sales increase by 35% over the same period in the previous two years (2020-2021), and the Mega Store Shin Jeju branch, which opened in March last year, experienced a 70% surge in sales from March last year to January this year compared to the same period the previous year.

Lotte Hi-Mart is also expanding its online business, including same-day delivery services and live broadcasts. As a result, the proportion of online shopping mall sales in Lotte Hi-Mart's total sales increased from 7% in 2017 to 15% in 2020 and 20% in 2021. The same-day delivery service offers delivery and installation on the same day for customers in the metropolitan area and major cities who make payments before 1 p.m. ‘Heart Live,’ their in-house live commerce, features show hosts, professional consultants, and manufacturer staff, enabling expert real-time communication. Last year, the average number of viewers for Heart Live increased by 540% compared to the previous year.

On the 24th, a one-person media zone was set up at the Lotte Hi-Mart Megastore Gimpo Airport branch in Gangseo-gu, Seoul.

Electron Land operates 108 Power Centers, which are experiential premium stores. The Power Centers are divided into zones such as home appliance maker zones, health appliance zones, kitchen appliance zones, TV zones, IT zones, beauty and bathroom zones, and gaming zones, allowing customers to comfortably compare and experience desired products. The maker zones focus on premium large appliances from popular brands like Samsung Electronics and LG Electronics.

Electron Land is also putting effort into diversifying its online mall business with fruit brand Seonhan Fruit and live commerce Land Live. Seonhan Fruit is a fruit brand launched in June last year through a joint venture between Electron Land and Seoul Cheonggwa, selling the top 10% of excellent domestic fruits selected directly by veteran fruit auctioneers. Land Live is simultaneously broadcast on Naver Shopping Live and allows product purchases through Smart Store. Last month, Electron Land’s shopping mall sales grew by 6% compared to the previous year.

A Lotte Hi-Mart official said, "We are continuously striving to lead changing distribution trends and present a more enjoyable shopping culture to customers," adding, "We plan to keep working steadily to enhance convenience in both online and offline shopping."

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