Focusing on establishment of omni-channel ... Expansion of new distribution channel as well
Lotte regards omni-channel as a new growth engine in distribution unit and focuses on its establishment. Omni-channel strategy means a combination of shopping environment of stores and user experience which makes customers feel as if they use a single store through organic link of all shopping channels surrounding consumers such as online, offline and mobile. Currently, major retailers of Lotte such as Lotte Department Store, Lotte Mart and Lotte.com are pushing forward the establishment of omni-channel through mutual cooperation. Lotte has a strategy to provide against entrance of global retail companies into Korea by establishing omni-channel based various on·offline channels that Lotte has.
In addition, Lotte will make efforts to find new retail channels such as continuous extension of outlet and complex shopping mall, which are recently popular, and opening of new concept of exclusive fashion malls.
Responding to changes in domestic market, increase of overseas expansion
Food unit makes steady efforts to increase overseas expansion while focusing on preparation of countermeasures against the changes in composition of population such as reduction of number of adolescents and infants and rising of aging population and low growth of food industry.
Lotte Confectionery actively targets Indian market by completing the second Choco Pie plant in India and also expects to export products to the Middle East and Africa, India’s surrounding nations. Lotte Chilsung Beverage plans to enhance brand value by launching extraction juice and new carbonated water product this year while increasing market competitiveness by enhancing local customized marketing and sales. Meanwhile, Lotte Liquor will secure annual production capacity 300,000 kl Kloud beer by completing beer plant 2 in Chungju in the second half of this year.
Improving brand awareness through increase of overseas expansion
Lotte’s tourism unit is concentrating on the improvement of brand awareness through increase of overseas expansion while promoting continuous growth utilizing the rising trend of foreign tourists.
Lotte Hotel could broaden its business area into the North America and enhance global brand value of the whole Lotte as it acquired ‘The New York Palace Hotel’ in the center of Manhattan, New York, last year. Domestically, it will launch a new lifestyle hotel brand ‘L7’ and finish the preparation of opening a 6-star hotel in Lotte World Tower. In addition, it will open hotels in Yangon of Myanmar, Saint Petersburg of Russia, and Shenyang and Yentai of China in 2017.
Lotte Duty Free, the global 3rd business operator is increasing its global awareness based on its know-how accumulated at home and abroad. It pushes forward entering downtown duty free shop in Tokyo Ginza, the representative busy street of Japan, and Bangkok of Thailand in 2016.
Jumping to a top chemistry company in Asia
Lotte’s chemistry unit is finding the opportunity of jumping for future growth with Lotte Chemical as center. Although economic environment is not favorable, it will establish a solid foothold as a top chemical company in Asia by finishing large-scale investment activities at home and abroad according to plan.
In the first half of this year, by completing the acquisition of Samsung’s chemical affiliates, Lotte Fine Chemicals, Lotte BP and Lotte Advanced Material were newly launched. Through this M&A, Lotte can realize vertically integration of high value products and increase of business portfolio beyond just economy of scale. And as a domestic chemical company, for the first time, it is constructing an ethane cracker plant in the US based on shale gas. As a joint business with US Axiall Corporation, it aims at commercial production in 2018. In addition, by completing a gas field chemical complex in Surgil, Uzbekistan through private-public partnership, commercial production will start in January, this year. Lotte Chemical expects to advance into new markets such as Central Asia, Europe and Africa through this.