Lotte Group Chairman Shin Dong-bin stressed the need for a digital transformation to cope with changes in technology, the environment and consumer demand. Chairman Shin made the remarks at the Value Creation Meeting for the 1st half of 2018 in which 70 executives, including CEOs of Korean and foreign operations and business unit chiefs, were present at the Lotte Central Research Institute in Magok-dong, Gangseo-gu, Seoul, on Jan. 31.
“Application of digital technologies will bring about a dramatic rise in production and innovation in products and services, and the level of changing some services to digital no longer satisfies consumers’ heightened expectations,” Chairman Shin said. He urged the participating executives to accelerate digital transformation.
“2018 will be the first year of realizing the vision ‘Lifetime Value Creator’ Lotte Group established last year,” Shin said. He called for his executives to be committed to creating qualitative growth values. He also stressed the need of choice and concentration. He urged them to strengthen its capabilities in core businesses and determination to dispose of non-essential businesses. Lotte is accelerating steps to dispose of sagging businesses by beginning to sell Lotte Mart operations in China in the wake of China’s retaliation steps against the installation of U.S. Terminal High Altitude Defense (THAAD) systems in Korea.
Lotte Home Shopping President, one of the participants, said Lotte Home Shopping will withdraw from China by 2021.
Chairman Shin also called for furthering overseas business expansion, saying expanding global business is essential to ensure continued growth and improve profitability. He also revealed his determination to nurture “mega brands.” He called for each business to focus on the “Lotte” brand. Lotte Group will seek business expansion under the three themes ― women, children and global― to raise its brand power.
Chmn. Says Lotte Committed to Promoting Shared Growth
In his New Year’s message, Lotte Group Chairman Shin urged executives and staff to add values to customers’ lives and enjoy “shared growth.”
“(We at Lotte Group) will have to create values that customers want by attaching more concern to social trends and changes,” Chairman Shin said. To this end, he proposed four suggestions. Citing work-life balance and YOLO (You Only Live Once), he said, “Our society is changing toward a focus on the quality of lives.”
A company capable of grasping trends of changes fast and offering values surpassing expectations will be able to lead the market, he said. Chairman Shin called for all his executives and staff to redouble efforts to add value to customers’ lives by being armed with a sense of lifetime value creator.
Secondly, he called for a group-wide digital transformation to create new growth engines by coping with environmental changes nimbly. He stressed the importance of innovation by having all businesses embrace state-of-the-art ICT technologies, including AI, IoT and VR. He went on to say that ultimately this will lead to enhanced corporate productivity and seizing opportunities to explore new growth engines that could break the mold.
Thirdly, he urged them to make efforts to raise Lotte’s brand value. “Powerful brand power is more effective than any marketing strategies, and let me ask each of you to make efforts to deliver capabilities, knowhow and positive images we have accumulated in diverse business areas to customers in an efficient fashion,” he said.
Shin urged them to make Lotte’s name and symbol trusted by customers in Korea and around the world.
Fourthly, he called for Lotte Group to become a company that shares and grows together with neighbors. Chairman Shin urged them to communicate with stakeholders, including customers, shareholders, business partners and regional civic bodies to ensure management transparency.
He also promised to contribute to the development of the national economy by creating jobs and making continuous investments.
Lastly, Shin, citing this year’s expected difficulties, appealed for them to make all-out efforts to ensure sustainable growth.
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