Kim Sang-hyun, Head of Lotte Group Retail HQ, delivers a speech on ‘Digital Transformation and E-commerce Efficiency’ at the Asia-Pacific Economic Cooperation (APEC) Leaders Meeting Chief Executive Officers (CEO) Summit (Summit) held at Gyeongju Arts Center in North Gyeongsang on the 29th. Reporter Lee Jun-heon

Kim Sang-hyun, Vice Chairman and Head of the Lotte retail group, said, “Digital transformation is not about technology, but a process of redesigning the customer experience.”

At the presentation in the ‘Digital Transformation and E-commerce Efficiency’ session of the Asia-Pacific Economic Cooperation (APEC) Chief Executive Officers (CEO) Summit held at Gyeongju Arts Center on the 29th, Vice Chairman Kim said, “Digital technology does not replace offline stores; it is a tool of innovation that creates new shopping experiences.” He said, “Despite the rapid growth of e-commerce, more than 70% of retail sales in Asia occur in offline stores.”

The Lotte retail group is introducing AI-based product quality analysis, multilingual information kiosks, an AI sommelier, a 3D virtual interior consultation solution, smart carts, and unmanned payment, centered on more than 12,000 stores nationwide.

Kim said, “Even in offline stores, customer-tailored advertising is becoming possible,” and, “It is developing into data-based joint marketing with partner brands and an advertising revenue model.” He then cited the following as tasks retailers should consider during digital transformation: enhanced personal information protection and security, deregulation and public-private cooperation, and improved sustainability.

He said, “Digital transformation is fundamentally changing not only the ‘what’ (What) of retail but also the ‘how’ (How),” adding, “Through artificial intelligence (AI) and data technologies, we must provide customers with more convenient and trustworthy services, and we must also actively pursue the realization of ESG (environmental, social, and governance) values such as carbon reduction, reducing food waste, and saving packaging materials.”