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*It has been translated using AI
SSG Dotcom’s online shopping is growing with synergy with E-Mart. The strategy of increasing delivery speed and options by using E-Mart stores as delivery bases, and combining fresh food competitiveness and paid membership is leading to an increase in sales. According to SSG.COM, Grocery sales rose 12% year-over-year in July.
In particular, sales of “Weekly Delivery,” which is operated based on E-Mart stores, increased by nearly 30% during the same period. Since announcing its leap to Korea’s representative online shopping mall in March, SSG.COM has been focusing its efforts on upgrading its delivery system and strengthening E-Mart product and promotion synergy and paid membership “Seok7 Club.” It is analyzed that such strengthening of competitiveness in shopping has led to sales growth.
◆Advanced pre-order delivery and expand on-demand delivery
SSG.COM is expanding its delivery options so that you can receive the product you want at the time you want it.
It is a strategy to diversify delivery options by upgrading existing pre-order delivery and expanding immediate delivery. “Squeak Weekly Delivery,” which operates in the form of pre-order delivery based on E-Mart stores, has subdivided the time of receipt and expanded the delivery volume. As a result, sales in the second quarter of “Weekly Delivery” increased by 17% year-on-year, and the increase was further expanded in July.
In immediate delivery, the use of “baro-quick,” which delivers products within a 3km radius of the store within an hour, is rapidly spreading. The number of orders in the second quarter was up 151% compared to the first quarter, and as of June, it was up 244% compared to January.
Last month, E-Mart’s Yangjae and Hanam branches began piloting “two-hour delivery.” By making it possible to receive large-capacity shopping quickly, it has created a delivery system that complements each other with a small-scale shopping center called “Baro Quick.”
SSG Dotcom will introduce “two-hour delivery” to more than 10 stores in major areas of Seoul this month, including Busan, Gyeongnam, Daegu, and Daejeon, and expand it to up to 50 stores within this year. By the end of the year, it plans to secure up to 150,000 delivery processing capabilities per day to establish a dense delivery network that encompasses pre-delivery and immediate delivery.
◆ Synergy of ‘Online E-Mart’ product and promotion
E-Mart’s synergy effect is also visible in products and promotions. Based on E-Mart’s competitiveness in fresh food, it is focusing on cold chain management such as borang packaging so that it can maintain freshness during the delivery process while diversifying its flavors and improving quality. In the second quarter, more than 6 out of 10 customers who purchased fresh food subject to the “Fresh Guarantee System” repurchased fresh food within the same quarter.
Online sales of E-Mart’s flagship promotion “Whale It Festa” also increased. In the second quarter, the average daily sales of the event increased by 20% compared to the previous quarter.
◆ Expanding the excellent customer base of ‘Seok7 Club’
The retention rate of membership “Seok7 Club”, which saves 7% of the purchase amount, exceeded 90%. The unit price of customers for membership shopping was more than 90% higher than that of non-members, and the number of purchases was about twice as high.
Practical accumulation benefits were effective in the high repurchase and purchase indicators of members. The average monthly accumulation of members in the second quarter was about three times the monthly subscription fee, and VIP members were about 10 times higher.
In July, membership-linked promotions were held every week, resulting in a 15% increase in member sales compared to the previous month.
“We are strengthening our competitiveness in delivery, products, and membership, and are starting to grow online,” an SSG dotcom official said. “We will increase our delivery competitiveness so that customers can receive the products they need more quickly at the time they want, and continue to improve profitability by streamlining our business structure.”
