Lotte Business Group is striving to build a foundation for its continued growth amidst the business hardships the group has been experiencing in Korea.
Lotte Group Chairman Shin Dong-bin told a meeting with CEOs last month that the fast development of technologies in an era of the 4th Industrial Revolution will greatly endanger companies which stick to conventional methods. He called for the participants to find connections between such new technologies as A.I. and IoT and the group’s businesses.
In this regard, the business group plans to brace for the future by connecting the conventional businesses with big data, A.I. technology and omni-channel. To this end, the group decided to introduce IBM Watson to demonstrate artificial intelligence services tailored to meet customers’ understanding last December. The AI themes Lotte and IBM will work on by making the most of the Watson are an intelligent “shopping adviser,” and an intelligent decision-making support platform. Lotte Data Communication Co. will be charged with building a system for the operation of the A.I.-based platform, while Lotte members will be responsible for data analysis.
The group-wide integrated IT service, to be built within five years, will cover all businesses. Each distribution subsidiary of the group is reinforcing diverse services to build omni-channel networks. Among the ones that are settling down in a fast pace is an outlet pickup service in which office works lacking shopping time can purchase products online and pick them from Lotte department and outlets while returning home from the office.
The group is striving to establish omni-channel systems abroad. Lotte has decided to team up with Salim Group, one of Indonesia’s largest business groups, to enter the Indonesian e-commerce market. They plan to launch an e-commerce series in early next year. They plan to establish onmi-channel systems integrating the two groups’ off-line capabilities ― Lotte Group’s 41 mart and department outlets and Salim Group’s 11,000 convenience shops.
The group is accelerating efforts to strengthen its presence in Vietnam. Lotte plans to implement a landmark project in Vietnam like the Lotte Tower project in Korea. The group plans to invest 330 billion won to build “Lotte Mall Hanoi” in the new commercial district of Tay Ho, Hanoi, by 2020. The project calls for constructing shopping mall, department store, mart and cinema on a combined floor space about 200,000 sq. meters in size near Lake Ho Tay. Lotte is expected to present the upcoming Lotte Mall Hanoi as a landmark with a completive edge following Lotte Center Hanoi.
Lotte plans to build an “Eco Smart City” in the Ham Thu Thiem District in Ho Chi Minh City, now being developed as an economic hub of Vietnam.
The project involves an investment of 2 trillion won to build a mega complex, including department store, shopping mall, cinema theater, office-hotels and housing facilities in an area covering about 100,000 sq. meters. Hoh Chi Minh City is developing the Ham Thu Thiem District as an economic hub representing Southeast Asia to take its cue from China’s Pudong Financial District in Shanghai.
Lotte Group’s chemical unit is striving to seize up future growth opportunities in Korea and abroad. Lotte Chemical is ramping up its global competitiveness by making preemptive investments and diversifying import sources.
Korea’s Landmark, Lotte World Tower
The Lotte World Tower is a multi-purpose mega-project comprising the Lotte World Mall that opened in October 2014. The Lotte World Mall has established itself as Korea’s largest-ever, world-class shopping establishment comprising of the Avenuel, one of the nation’s largest premium department stores, and a duty-free shop with shopping malls with diverse brands and eateries.
Lotte Mart and Hi-Mart are also occupants. The shopping mall also has such facilities as the vineyard-style Lotte Concert Hall, the nation’s largest Cinema, and an aquarium.
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