LG Uplus announced on the 22nd that it will open an unmanned store’U+ Untact Store’ in Jongno-gu, Seoul. The LG U+ promotional model is using an in-store kiosk. Provided by LG Uplus
The mobile phone opening method, which was complicated by the pandemic of the novel coronavirus infection (Corona 19), is changing. The mobile communication industry is focusing on non-face-to-face marketing, including the opening of unmanned stores that reduce face-to-face contact and the launch of an online subscription-only plan. However, there are also voices of concern about the decline in jobs resulting from the reduction of offline stores.
From opening a mobile phone to choosing a plan, customers themselves
On the 22nd, LG Uplus announced that it had opened an unmanned store’U+ Untact Store’ in Jongno-gu, Seoul, at an online press conference. In U+ Untact Store, customers can proceed with SIM opening, device change, new sign-up, and number transfer, which were only possible through cell phone dealers.
Customers can also choose to purchase the latest smartphone from an unmanned information terminal (kiosk) in the store, install the terminal, rate plan, rate discount method, and additional service benefits. To this end, LG Uplus partnered with Naver to reorganize the payment step from six to two, and introduced an AI conversational robot (chatbot) that applied Google’s artificial intelligence (AI) technology’Bert’. If a customer wants to consult an employee, in-person consultation can also be provided through the agent call system attached to each service device.
SK Telecom and KT are also piloting unmanned stores. While SK Telecom is operating an unmanned store’T Factory’ near Hongik University in Mapo-gu, Seoul last year, KT also opened an unmanned store’KT Cell Lounge’ in Dongseong-ro, Daegu in January. The kiosk also handles communication-related tasks, such as paying bills and changing rate plans, and supports the opening of smartphones.
Labor costs and distribution margins can also be saved.
The sudden rise of unmanned mobile phone stores is due to the changed distribution environment in the aftermath of Corona 19. Distributors, such as fast food and cafes, have already maintained traditional methods since last year, changing online and offline stores into a form optimized for non-face-to-face. In the case of an unmanned store, it is highly efficient in that it is possible to operate 24 hours and reduce labor costs. LG U+ plans to add Untact Stores in Busan and Daejeon in the first half and Daegu and Gwangju in the second half.
The three mobile carriers are also focusing on increasing the proportion of online services. In January, SK Telecom launched an online subscription-only plan that is 30% cheaper than the existing plan. This is a plan with the concept of providing a discount to customers with fees to be paid to the existing offline distribution network. Starting with SK Telecom, both LG U+ and KT have introduced similar plans.
Given this situation, the online distribution network of mobile carriers has also grown rapidly since last year. According to LG Uplus, mobile subscribers through online shopping malls increased by 27% and 32%, respectively, compared to the previous year. LG U+ plans to triple its mobile and internet subscribers through online channels within three years.
Small business owners, middle-aged people who feel the information gap?
However, the side effects resulting from the reduction of offline stores due to the growth of the online distribution network are a homework to be solved. This is because the number of customers visiting offline stores due to Corona 19 has plunged, and as mobile carriers have strengthened online marketing, the small and medium-sized mobile phone distribution network has fallen into a deadly crisis.
The inconvenience of middle-aged and elderly people who are not familiar with digital culture is also a concern. According to a survey conducted by the Gyeonggi Research Institute last month of 1,000 Gyeonggi residents, 33.9% of middle-aged and older people over 60 complained of difficulty using kiosks, and half of the respondents said that online services were uncomfortable.
An official from the National Mobile Telecommunications Distribution Association said, “It is true that most customers are having difficulties with the kiosk alone because the mobile phone plan is so complicated. It is necessary to change the way to soft landing considering the role of offline stores, although we understand the direction of online change. “He said.
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