Lotte unveils industry first Smart Store as part of focus on digital technology

By Andrew Pentol |

Lotte Duty Free Smart Store new

According to Lotte Duty Free, the application of digital technology to offline stores enhances the customer experience.

Korean powerhouse Lotte Duty Free has launched the industry’s first Smart Store, incorporating new digital technology.

The new 520sq m outlet minimises face-to-face contact and is located on the first floor of the retailer’s main downtown Myeongdong store. It is part of the redeveloped Star Avenue Corner. Perfumes, cosmetics and beauty products are all available. Cosmetics brands include SK-II, Shiseido and Estée Lauder .

According to Lotte, the application of digital technology to offline stores, enhances the customer experience and creates a fast and pleasant shopping environment.

Kap Lee, CEO Lotte Duty Free said: “The Lotte Duty Free Smart Store is the first future store in the industry that enables a new digital experience. Lotte Duty Free will continue striving to provide innovative shopping services in the future.”

Those visiting the Smart Store must first scan the QR Code installed at the store entrance with their smartphones. This will allow them access to the mobile cart dedicated to the Smart Store.

If a customer is interested in purchasing a particular product, they can scan its bar code to discover further details about the item (product reviews, inventory quantities) and add it directly to their mobile cart.

A CONCEPT FOR DOMESTIC AND FOREIGN CONSUMERS

Once shopping is complete, customers simply show a QR Code which is unique to each transaction and pay for everything altogether. It is also important to point out that the concept is not only for domestic customers. Foreign customers have also been considered.

Lotte Smart Store large for web

‘Bitti’, which sells curated curated products has entered the industry for the first time.

Mobile cart access QR codes, for example, can be scanned with WeChat, China’s largest mobile messenger platform. Product-specific information is also available in four languages (Korean, English, Japanese and simplified Chinese).

In the Smart Store, the aforementioned global cosmetic labels enter the store and showcase shopping services differentiated by brand.

SK-II, for example, offers a concept entitled ‘I-Magic Ring Bar’ which recommends products suitable for customers’ skin. This is through a diagnosis of five factors which determine skin age.

Shiseido explains products through an LED screen, through which store lighting is switched on according to the selected product.

Estée Lauder has introduced a ‘virtual makeup service’ based on augmented reality technology. According to Lotte, this makes it easy and fun for customers to find the lipstick they require. A ‘Digital Shade Finder’ device helps customers locate the colour that best matches the skin tone.

Lotte Smart Store phone shot

 The new Lotte Duty Free Smart Store enables quick and easy check-out.

In addition to digital shopping services, a differentiated shopping experience is provided. La Prairie Facial Cabin, a spa service room providing skin care services from the Swiss brand, includes a beauty influencer working as a Lotte Duty Free model. ‘Bitti’, which sells curated products, also enters the industry for the first time.

Through opening the Smart Store, Lotte Duty Free expects to increase customer convenience through technology and change consumer sentiment amid the Covid-19 crisis.

Lotte Duty Free is now hoping to expand the concept to other offline stores at home and abroad.

In the meantime, the retailer has launched the industry’s first LDF Pay  electronic payment method and introduced Kakao Easy Subscription Service. Customers must scan the QR code in the store in order to sign up.

Lotte has also introduced the Alipay Smile to Pay recognition payment system and Dream Face virtual make-up service as part of its commitment to embrace digital technology.

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