Kim Sang-hyun, vice chairman and CEO of Lotte Retail Group, underscored the customer-centric nature of digital transformation as technology continues to reshape and elevate the offline retail experience.
Speaking Wednesday at the Asia-Pacific Economic Cooperation CEO Summit in Gyeongju, North Gyeongsang Province, Kim said the industry’s digital shift should focus on innovation that strengthens customer engagement during a session titled “Digital Transformation & Retail Efficiency.”
“While e-commerce growth is impressive, physical stores still account for over 70 percent of retail sales in Asia,” Kim said, adding that customers still seek a greater in-store experience, personalization and value. “Digital transformation is providing retailers with the opportunity to turn retail from mere shopping transactions into superior shopping experiences."
He outlined how Lotte is integrating a range of digital solutions across its 12,000 domestic outlets, including artificial intelligence-led product analysis, multilingual kiosks, 3D virtual interior design consultations and unmanned payment systems.
“At Lotte Retail, planning for a superior customer experience begins long before customers even enter our stores,” he said.
Digitalization not only enhances customer experience but also improves operational efficiency and reduces costs.
One major transformation underway, he noted, is the rise of retail media networks, or RMNs, platforms that allow retailers to sell advertising space on their own channels to third-party brands.
“We are implementing screens in stores and on shelves, so that we are also able to deliver customized advertising that will drive maximum sales while generating customer data and analyses to improve our planograms and customer experiences,” Kim explained.
Digital transformation is reshaping not only the "what" but also the "how" of retail, though it brings challenges in data privacy and security.
“It is important that all retailers uphold the same highest standards of personal data protection and transparency,” Kim said.
He also pointed to regulatory reform, public-private cooperation and sustainability as key priorities.
“Cross-border commerce will grow rapidly, and governments and retailers must work together to meet customers’ needs to shop from anywhere,” Kim remarked, noting retailers’ expanding role in addressing environmental concerns from carbon footprints and food security to reducing packaging and waste.
minmin@heraldcorp.com
