Retail News CRM

Tag: Korea

  • South Korean cellcos won’t sue over subsidy hike

    South Korean cellcos won’t sue over subsidy hike

    South Korea’s mobile operators have reportedly decided against taking legal action over the mandated subsidy hike for regular telecoms subscriptions.

    The ICT ministry this month instructed operators to implement a 25% discount rate for regular new subscribers, up from the current discount rate of 20%. In response, SK Telecom, KT and LG Uplus were said to be considering taking the government to court to request having the order rescinded.

    But the operators have now written to the ministry indicating that they will accept the discount hike.

    The discount is typically offered to customers on a two-year contract plan choosing not to take advantage of a handset subsidy.

    The ministry has estimated that the discount increase will allow a combined 19 million subscribers to achieve a combined 1 trillion won ($888.6 million) in savings per year. The current government has made reducing telecoms expenses for households a priority.

    But the operators have opposed the move on the grounds that it could dramatically impact their profitability, and that the decision was made without sufficient consultation with the industry. The operators have also expressed concern that the discount rate could be raised further in the future, compounding the impact on their finances.

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  • Major South Korean Conglomerate Enters Bitcoin Remittance Market

    Major South Korean Conglomerate Enters Bitcoin Remittance Market

    South Korean conglomerate, Dongbu Group, has announced a partnership with Bitcoin remittance service provider Sentbe in its bid to enter the Bitcoin remittance market.

    The group is collaborating with Sentbe through its savings bank subsidiary, the Dongbu Savings Bank.

    According to an official of the savings bank, a Memorandum of Understanding (MOU) was already signed by the partners to prepare for the fourth industrial revolution era.

    “We have been working on this business alliance to prepare for the fourth industrial revolution era under the traditional savings bank business.”

    Brief background of the partners

    South Korean firm Sentbe was a recipient of a financial technology (fintech) award for its foreign remittance service utilizing Bitcoin in 2016.

    Through the service, customers can send money to China, Vietnam, Japan, Indonesia and the Philippines at a fee that is up to 95 percent lower than those charged by traditional banks.

    The Dongbu Group, meanwhile, is a major conglomerate in South Korea. It produces industry, chemical, shipping, financial and insurance products. Its subsidiary, Dongbu Savings Bank, is a member of the World Savings and Retail Banking Institute (WSBI).

    Through WSBI, the bank collaborates with many financial institutions around the world, including Sweden’s Swedbank, Fra-Spa of Germany, Philippine Postal Savings Bank, the Indonesia National Housing Bank, the Sri Lanka National Savings Bank and the Thai Government Savings Bank.

    South Korea’s legalization of Bitcoin remittances

    The South Korean government has amended the Foreign Exchange Transactions Act in order to legalize Bitcoin remittances. The amended law took effect on July 18, 2017.

    Under the law, fintech companies planning to provide Bitcoin foreign exchange transfers should register with the Financial Supervisory Service (FSS). They should also comply with certain financial requirements like a paid-in capital of more than two bln Won (around $1.77 mln), and a debt-to-equity ratio of less than 200 percent.

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  • Level of Interests towards Galaxy Note 8 Rises in South Korea

    Level of Interests towards Galaxy Note 8 Rises in South Korea

    Samsung Electronics started marketing for ‘Galaxy Note 8’ in South Korea and the U.S. Expectations for its popularity are rising as consumers are continuously visiting cellphone stores in South Korea and the U.S.

    Release date of Galaxy Note 8 is the 15th of September. Samsung Electronics and three South Korean mobile network providers are going to start activation for consumers who preordered Galaxy Note 8 from the 15th until the 20th of September as they expect there will be many potential demands for Galaxy Note 8 due to discontinuation of Galaxy Note 7. Consumers who did not preordered Galaxy Note 8 will be able to activate it after the 21st.

    Samsung Electronics is going to release 64GB and 256GB Galaxy Note 8 models first in South Korea. It included plastic transparent case as part of components that come with a box for Galaxy Note 8 that will be released in South Korea for the first time. In case for the U.S., people have to purchase separate cases for Galaxy Note 8s. Samsung Electronics applied requests from South Korean consumers who wanted a case that does not cover design while it protects the phone from crack.

    “We started taking pre-application for Galaxy Note 8 starting from the 24th before the official preorder date, which is the 7th of September, and there have been 400 to 500 cases of pre-applications on daily average based on customers who filled out necessary documents.” said a representative for Samsung Digital Plaza in Hongdae. “This is the hottest reaction for Galaxy Note series ever.”

    “If a customer just write his or her name and contact number, he or she will be able to receive Galaxy Note 8 on the day it is released based on an order of membership by subscription.” said a representative for LG Uplus direct management store. “We are going to notify our customers by texts when price and free gifts are decided.”

    “Because selective contract discount ratio for Galaxy Note 8 is going to increase from 20% to 25% on the 15th of September, it will be more effective for consumers to wait until the 15th if it is not urgent.” said a representative for an authorized KT retail store.

    Interests towards Galaxy Note 8 are also high in the U.S. where it was launched by Samsung Electronics. Part of New York Time Square was covered with advertisements for Galaxy Note 8 while electronic stores such as Best Buys were filled with customers who were looking for Galaxy Note 8.

    Samsung Electronics is also going to release 64GB Galaxy Note 8 model in the U.S. Price of Galaxy Note 8 is going to be different based on mobile network providers and electronic stores. Verizon and Sprint, AT&T, and T-Mobile and Best Buy (Unlock phone) are going to sell Galaxy Note 8 at $960, $949.99, and $930 respectively. However actual price is going to be more than $1,000 since these amounts do not include any sales taxes.

    Samsung Electronics is going to give out wireless charger, Gear 360 (2017), or 128GB micro SD card to people who preorder Galaxy Note 8. Customers who returned their Galaxy Note 8s are going to receive $425 of discount if they purchase Galaxy Note 8. Best Buy put out ‘$150 discount’ as a benefit for people who preorder Galaxy Note 8s.

    “Customer reactions towards Galaxy Note 8 are very fast as four people preordered Galaxy Note 8s in just one hour removed from launching of Galaxy Note 8.” said a representative for a Best Buy store in Manhattan. “Most of customers who tested out Galaxy Note 8s showed most of their interests towards dual-camera’s live focus, functions of S Pen, and midnight black color.”

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  • Korean cellcos may sue govt over subsidy hike

    Korean cellcos may sue govt over subsidy hike

    South Korean mobile operator’s SK Telecom, KT and LG Uplus are considering taking the government to court over an order to increase discounts for new subscribers.

    The operators last week received a formal order to implement a 25% discount rate for regular new subscribers as part of the current government’s objective of reducing telecoms expenses for household.

    The change would represent a five percentage point increase of the current selective discount rate of 20% for regular subscribers, which was itself raised from the previous 12% in 2015.

    But the operators are reportedly considering taking administrative litigation to counter the order, citing a lack of sufficient discussion and consultation about the change as well as a need to prevent further revenue declines and asset depreciation.

    Another potential avenue for challenging the decision involves the way the discount rate was calculated.

    The mobile sector has also expressed concern over the potential for the 25% figure to be raised further in the future – the ICT ministry has proposed to review the discount rate every two years to reflect the average length of a postpaid contract.

    South Korea’s ICT ministry has estimated that the higher discount rate will reduce the country’s mobile costs by around 1 trillion won ($884.6 million) per year.

    Analysts have meanwhile estimated that the cut would lead to a 300 billion won reduction in sales for the three operators if applied to all customers currently benefiting from the selective discount rate, and 600 billion won in losses if it is expanded to apply to all existing subscribers.

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  • Starbucks Korea to trial voice ordering with AI

    Starbucks Korea to trial voice ordering with AI

    Starbucks Korea is to partner with the country’s largest telco in a trial of voice ordering using AI.

    If it works, Starbucks customers will be able to order and pay for a coffee just by speaking, speeding the payment process.

    SK Telecom Co says the trial will use the company’s AI device Nugu, released last September, which focuses on providing household-related services. Earlier this month, SK Telecom released a portable edition of Nugu, seeking to tap deeper into the AI industry.

    Nugu provides various services to users, including music streaming, Internet-of-Things solutions, schedule management and weather alerts.

    The mobile carrier also plans to connect Nugu to its driving-navigation platform T-map, allowing drivers to order drinks and locate the nearest drive-thru Starbucks shops. If the development is completed, drivers will be able to safely order drinks without having to tap their smartphones.

    Starbucks Korea and SK Telecom plan to complete the development by the end of the year.

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  • Kakao Taxi dominates cab-hailing app in Korea

    Kakao Taxi dominates cab-hailing app in Korea

    Kakao Taxi is the most popular cab-hailing app in South Korea, dominating 98 percent of the market, while the food delivery app sector is fiercely contested by two rivals, according to a survey on Tuesday.

    Market analysis company Open Survey polled 1,500 smartphone users between 20 through 40 to find out which online-to-offline apps they use the most for specific needs.

    Kakao Taxi, run by Kakao Corp. that also operates the popular messenger service Kakao Talk, commanded 98 percent of responses for cab-calling services, while UberTaxi came in a far second with 11 percent. Multiple selections were allowed in the survey

    For food delivery, the most used app was Baedal Minjok with 80 percent. It was closely followed by Yogiyo with 72 percent. Baedaltong was third with 48 percent.

    Yanolja and Yeogi Eoddae were neck and neck for hotel booking apps, with both around 50 percent.

    Hotels Combine was second with 35 percent, and Hotels.com ranked third at 33 percent. Airbnb followed with 22 percent.

    Socar was the top choice for car rental with 78 percent. The second most popular app was Green Car with 38 percent.

    Customer satisfaction was the highest for cab apps with 83 percent. Hotel reservation apps also did well with 71 percent. Food delivery apps had 68 percent satisfaction numbers.

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  • Bruxie takes its waffle sandwiches to Seoul

    Bruxie takes its waffle sandwiches to Seoul

    US concept restaurant Bruxie has taken its fried chicken and waffle sandwich international, launching a branch in South Korea.

    Its headquarters are in Orange County, California, where it opened its first location almost seven years ago. The fast-casual dining chain’s eighth location is in Seoul’s Lotte World Mall.

    “International expansion has always been a goal,” says CEO Anthony Smith, who leads the brand’s growth along with CFO Scott Miller and founder/chef Kelly Mullarney. South Korea’s locations are in the hands of franchisee Jae Jung of Bold 4, who plans 10 Bruxie outlets. The second will open in November.

    As well as its menu of sandwiches that feature waffles instead of bread, Bruxie offers salads, cane-sugar sodas, Wisconsin frozen custard, shakes, sundaes and floats. Its custom-crafted coffee is made from a proprietary blend of fair-trade imported beans.

    Bruxie restaurants open daily for breakfast, lunch, dinner and dessert.

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  • German luxury watch “Nomos” to open in Hanwha Galleria Duty Free Shop

    German luxury watch “Nomos” to open in Hanwha Galleria Duty Free Shop

    Hanwha Galleria Duty Free Shop opened German luxury watch Nomos store on Aug 17. Hanwha Galleria Duty Free Shop was the first Korean Duty Free business to launch luxury brands such as Golden Goose, Stefano Ricci, LAUNER LONDON and Corneliani, and succeeded in launching Nomos.

    In addition, Hanwha Galleria Duty Free Shop strengthened luxury watch collection with IWC and  Jaeger-LeCoultre opening in June.

    Nomos is a watch house with an in-house movement with outstanding technology. It was ranked n.8 world’s best watch in 2014 by Chronos, a prestigious German watch magazine along with IWC, Rolex, Patek Philippe and Jaeger-LeCoultre.

    The product dial has the name ‘Glashütte’ which is a production names of the finest watches in Germany. It is a certificate given only to high-quality brands such as A.Lange & Söhne and Glashütte Original.

    In order to put Glashütte on the dial, more than 50 percent of all parts should be produced in this area. Nomos produces 75 ~ 95% of the movement directly.

    Especially, Nomos has a good reputation as a good quality watch with a reasonable price as it can be purchased from 2 million won.

    Customers can purchase Nomos only in Galleria Duty Free Shop in Korea, but there are already more than 20 stores in Japan. In addition, Metro, which is a popular model, gained explosive popularity after being introduced at the Basel Fair in March 2014.

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  • Premium outdoor brand ‘Gregory’ to open its first flagship store

    Premium outdoor brand ‘Gregory’ to open its first flagship store

    Under the unique brand philosophy of ‘Backpacks should be as easy to wear’, Gregory has opened the first flagship store in Sangsu dong, Seoul.

    Based on its ergonomic design and state-of-the-art technology, Gregory has been becoming a brand with a new category of ‘Outdoor Lifestyle Backpack’.

    Since Gregory offers a total of three product lines including functionality, lifestyle, and business line, the brand is widely loved by a wide range of customers from college students in twenties who pursue athletic lifestyle to office workers in thirties who place on functionality and quality.

    Gregory’s “Fit Jig” service is the best example of this brand identity. When choosing a backpack, it is important to consider a variety of factors such as gender, body size, amount of baggage, and purpose, and choose a product that provides a comfortable fit without feeling uncomfortable to the body.

    The Gregory Sangsu flagship store offers a service that recommends an optimal model based on your body size and usage, using a body meter.

    In addition, as it is the only flagship store in Korea, customers can try out the most various products. The Gregory flagship store also offers ‘Old Logo’ products, which are available only here.

    It sells a variety of products that can look at the history and identity of the brand from the vintage items with the old logo to the limited edition. Also from the August 25th, Gregory will show apparel products with its sensitivity.

    The Gregory Flagship Store also attracted visitors with a variety of cultural experience events.  In particular, it celebrated its opening in March last year, and its stores were decorated like galleries.

    Gregory’s early products, founded in 1977 in San Diego, USA, have provided a variety of information related to the brand’s history for 40 years. A Gregory official said, “The Gregory Flagship Store is a place where you can meet all of Gregory’s products that symbolize outdoor and lifestyle.”

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  • SK Telecom develops 5G repeater

    SK Telecom develops 5G repeater

    SK Telecom has developed and trialed a new 5G repeater as part of its preparations towards launching a commercial 5G network.

    The repeater has been applied to the operator’s 5G trial network near Gangnam Station in Seoul to provide denser coverage.

    It has been built with SK Telecom’s independently developed 5G relay technology to solve the issue of 5G coverage limitations caused by the narrow propagation characteristics of high-frequency radio signals in the above 6-GHz range.

    Park Jin-hyo, head of SK Telecom’s network technology R&D center, said the populous Gangnam area is one of the most difficult places to plan and build a network due to the presence of a large number of radio wave obstacles and high-density data traffic.

    “SK Telecom is moving closer to launching a commercial 5G network by applying key 5G technologies to our 5G trial network in Gangnam, an area with the highest data traffic,” he said.

    Using the 5G repeater, SK Telecom will now be able to more easily build 5G networks in other high-density areas, he added.

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  • Geodis to manage BMW’s distribution centre in Korea

    Geodis to manage BMW’s distribution centre in Korea

    In April 2017, BMW Korea opened a new regional parts distribution centre for BMW, MINI and motorcycle spare parts in Anseong, Gyeonggi Province, 70 kilometres south of Seoul. GEODIS is entrusted with the logistics of this over 50,000 sqm site, one of BMW’s biggest Regional Distribution Center in the world.

    On this new site, GEODIS annually manages over one million order lines and handles up auto parts deliveries across South Korea. The Group deals with thousands automotive parts stored, more than twice the volume compared to the previous facility.

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  • Korean convenience store chain GS25 to enter Vietnam

    Korean convenience store chain GS25 to enter Vietnam

    South Korea’s GS25 convenience store chain is about to make its Vietnam debut after forming a joint venture with Son Kim Group.

    Vietnam will be GS25’s parent GS Retail’s first foreign market, with the first store scheduled to open before the year ends.

    “We received requests from many countries, including China and other Southeast Asian countries, to export our brand,” a GS Retail spokesman said.

    “After months of research, we concluded that Vietnam had the largest potential for growth.”

    GS Retail, holds 30 per cent of the JV, will sign a master franchise agreement with the JV later to receive royalties on trademark rights and operation.

    GS Retail and Son Kim worked together on Vietnam’s VGS home shopping in the past.

    Vietnam’s large population and rising consumer spending have encouraged a number of international convenience stores to come.

    In June, 7-Eleven stepped into the market and now has four locations in Ho Chi Minh City.

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  • CJ Express to invest THB4 billion in expansion

    CJ Express to invest THB4 billion in expansion

    CJ Express, which runs convenience stores and supermarkets, plans to invest THB4 billion (US$120 million) in doubling the size of the business.

    Its aim is to be earning THB20 billion in sales by 2020, says MD Sathien Setthasit.

    He says about THB3.7 billion will be used to open 370 stores and supermarkets this year through to 2020. This would bring store numbers to 600 within the next three years.

    The remaining THB300 million will be spent on store renovations and other upgrades.

    Sathien says he is confident the investment will help boost sales to THB10 billion this year, up from THB7.4 billion last year.

    This year the company has added stores in the central region and in a 250km radius from Ratchaburi province, where it has its distribution centre.

    CJ Express is owned by the same stakeholders as energy-drink maker Carabao Group, but the two businesses are run separately. Sathien, who is also a Carabao Group founder, acquired CJ Express about four years ago.

    He says CJ Express is quite strong in the central region and helps support sales of Carabao Dang energy drinks.

    There are plans to expand CJ Express outlets to the northeast, which supports about 30 per cent of Thailand’s energy-drink market.

    Sathien says CJ Express will join forces with Topvalue, a wholly owned e-commerce site, in this year’s fourth quarter.

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  • First Williams-Sonoma Korea stores open

    First Williams-Sonoma Korea stores open

    Williams-Sonoma has opened its first stores in Seoul, South Korea under its strategic franchise agreement with home goods retailer Hyundai Livart Furniture.

    Pottery Barn and Pottery Barn Kids opened a combined store and West Elm opened a store at Hyundai City Mall Garden 5. Williams Sonoma opened at Hyundai Department store Mokdong. These openings are the first of 30 stores from the Williams-Sonoma portfolio expected to open across South Korea over the next 10 years.

    “This is an exciting milestone in our global expansion,” said Laura Alber, Williams-Sonoma president and CEO.

    Hyundai Livart, an affiliate of Hyundai Department Store Group, operates Livart, Livart Neoce, Livart Ismine, Livart Kitchen, Livart Kids and H.Mondo.

    The Korean launch follows Williams-Sonoma’s overseas forays into Canada, Australia and the UK, and the franchise of its brands to third parties in the Middle East, the Philippines and Mexico.

    “By the end of this year Williams-Sonoma will be represented at more than 145 international retail locations,” said Ronald Young, executive VP, global of Williams–Sonoma. “As we begin our partnership with Livart opening our first four stores of many to come in South Korea, we look forward to the tremendous opportunity of continuing our global expansion.”

    Hwa-Eung Kim, representative director and CEO of Hyundai Livart Furniture, said the company was looking forward to opening additional stores in Seoul and in other major cities across South Korea soon.

    This October, the two companies will open a five-story flagship store in Nonhyun-dong, Seoul. The superstore will include Pottery Barn, Pottery Barn Kids, and West Elm, and will represent the first time three Williams-Sonoma brands are offered in a single standalone location. An additional Williams-Sonoma store will be opened in the Hyundai City Mall Daegu branch in the latter half of this year.

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  • AmorePacific Q2 profit and sales fall sharply

    AmorePacific Q2 profit and sales fall sharply

    South Korean cosmetics company AmorePacific has reported a -58% fall in operating profit and a -16.5% drop in sales in Q2 2017, compared to the same period in 2016. Net profit plummeted by -59.8% year-on-year.

    Operating profit was KW101.6 billion (US$91.13 million) compared to KW240.6 billion in Q2 2016 and sales amounted to KW1,205 billion (US$1.1 billion).

    The company said revenue and profitability decreased for its South Korean business, including duty free stores, due to a decline in the number of foreign tourists.

    Chinese visitor numbers have fallen dramatically since mid-March because of the well documented THAAD anti-missile dispute between South Korea and China.

    On 15 March China imposed a ban on group tours to South Korea, leading to a -40% year-on-year fall in Chinese arrivals in March, a -66.6% decline in April, and a -64.1% decrease in May.

    “Revenue decreased for key luxury brands [such as Sulwhasoo and Hera] from a slowdown in the duty free channel,” said AmorePacific in a statement.

    “Revenue for premium brands [Laneige, Mamonde etc] decreased due to a decline in number of tourists affecting key commercial areas and the duty free channel.”

    The company said the slowdown in sales growth in Asia was a result of “geopolitical uncertainties”, while revenue and profit in North America declined as a result of increased investment in brands and channel portfolio restructuring.

    In Europe, sales and profit fell due to the termination of the Lolita Lempicka licence, said AmorePacific.

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