LGU+ Builds Home Living Telecom Stores Utilizing Big Data

LG Uplus announced on the 15th that it has introduced a home living collaboration store within ‘Ilsang-ui Teum Jamsil Saenae Branch’ in Jamsil-dong, Seoul, utilizing its self-developed big data commercial district analysis solution to provide differentiated experiences to MZ generation customers visiting its stores.

The home living collaboration store was opened in partnership with Wadiz, a design funding platform highly popular among the MZ generation for self-interior products, and the design studio Millimeter Milligram (MMMG). The store layout features a shop-in-shop format where home living products such as travel suitcases, espresso machines, and design calendars are sold within the LG Uplus telecommunications store.

LG Uplus model introducing smartphones and home living products at Ilsangtiteum Jamsil Saenae branch
[Photo by LG Uplus]

This project applied LG Uplus’s self-developed big data commercial district analysis solution. This solution calculates the optimal business type and location through big data analysis based on basic commercial district factors such as store area, floating population, and number of competitors, as well as regional consumption characteristic information from NICE Genie Data, including ▲major consumer age groups in the surrounding commercial district ▲visiting time slots ▲sales by industry. Subsequently, to verify the data analysis results and check emotional aspects not reflected in data, such as neighborhood atmosphere and local inconveniences, in-depth interviews were conducted with the store managers of LG Uplus in the area as a final validation step.

According to the analysis, approximately 45.3% of the floating population around the Jamsil Saenae branch were aged 20 to 30, and it was found that the number of stores selling related products such as fabric, clothing, and accessories was insufficient compared to consumption volume. Accordingly, LG Uplus decided to collaborate with Wadiz and MMMG, which hold many design- and eco-friendly-centered products, targeting customers interested in self-interior and value consumption.

In particular, based on the analysis of MZ generation customer responses to the popup store held since March this year at LG Uplus’s complex cultural space ‘Ilsang Bi Ilsang-ui Teum,’ Wadiz organized the store focusing on steady-selling products such as umbrellas, steam irons, and lunch boxes, mainly priced under 50,000 KRW.

LG Uplus is promoting a ‘store platform strategy’ that operates specialized stores such as photo, shopping, travel, and smartphone learning centers to attract more customers and provide positive experiences this year. The company’s strategy is to evolve stores beyond simple sales channels into offline platforms that create customer value through big data-based commercial district analysis.

Lee Jae-won, head of the MX Innovation Group at LG Uplus, said, “LG Uplus is undertaking various challenges never attempted in the telecommunications industry to provide positive customer experiences beyond selling telecommunications products at over 2,000 offline stores nationwide. We will accelerate the evolution of telecommunications stores into offline platforms by advancing data-based commercial district analysis solutions.”

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