Yongjin Jung, actively taking over SK Wyverns and W Concept
Starbucks Korea and eBay Korea also jumped into acquisitions
Focus on strengthening distribution capabilities in the offline-based online sector
Shinsegae Group Vice Chairman Jeong Yong-jin is taking a remarkable step by leading a massive M&A (acquisition/merger) in this year’s retail price. It is analyzed that the offline distribution-based Shinsegae Group’s distribution structure has strengthened its online distribution capabilities to secure competitiveness.
Shinsegae Group has acquired SK Wyverns, a professional baseball team, for 135.2 billion won this year, aiming for synergy between baseball and distribution. On the 1st, it acquired W Concept, an online women’s fashion editorial mall, in the late 200 billion won through SSG.com.
Shinsegae Group is also considering a plan to acquire a 50% stake in Starbucks Korea, which is owned by Starbucks’ US headquarters. In addition, it jumped into the acquisition of eBay Korea, which is worth up to 5 trillion won, which is considered the largest sale in the M&A market this year.
First, Shinsegae Group acquired a stake in SK Wyverns from SK Telecom in January.
E-Mart, one of the two pillars of Shinsegae Group, changed the team name to’SSG Landers’ with the group’s identity and officially launched the club on the 30th of last month.
Vice Chairman Chung Yong-jin’s will was largely reflected in the acquisition of the baseball team. On the day of the club’s inauguration, Vice Chairman Jeong Yong-jin entered the’SSG Landers Support’ chat room at the social media (SNS) clubhouse and revealed the reason for the acquisition of the baseball team, saying, “I envy Lotte with a baseball team.
He also provocated Lotte, saying, “They (Lotte) will have to chase after us by crying and eating mustard.”
It is not just the acquisition of the club, but also’baseball marketing’. E-Mart held a’Landers Day’ discount event until the 4th, and Shinsegae will hold a Landers Week discount event online from the 5th to the 11th.
M&A in the distribution field, which is the main business, is also striking.
SSG.com, an integrated online mall of Shinsegae Group, announced on the 1st that it has signed a stock trading main contract (SPA) to transfer the entire shares of W Concept, each of IMM Private Equity and ISE Commerce.
W Concept, which opened in October 2008, is an online fashion platform centered on emerging domestic designer brands. It is popular among working women in their 20s and 30s because they are similar in quality to department store clothing, but relatively inexpensive.
Currently, the number of members is approaching 5 million, making it the number one company in the women’s fashion editing shop category.
SSG.com is planning to officially incorporate the W concept after approval by the Fair Trade Commission for the business combination review. After the acquisition, the platform is operated separately as it is now, such as succeeding the existing professional manpower.
Shinsegae Group plans to increase delivery efficiency by integrating the group’s logistics system, while promoting integrated marketing so that its brand can be showcased in Starfield and Shinsegae offline channels.
The e-commerce division, which was evaluated as being relatively low in competitiveness compared to offline, has also started to grow in size through M&A.
Shinsegae also jumped into the acquisition of eBay Korea, which is evaluated as the third place in the e-commerce industry.
Earlier, Kang Hee-seok, CEO of E-Mart, said, “I am seriously considering the acquisition of eBay Korea.”
SSG.com is growing steadily, but last year’s transaction amount was only 4 trillion won. If you use an open market that uses external sellers, you can increase the number of categories and items, thus attracting more consumers. In addition, if eBay Korea is acquired, the open market conversion can proceed more easily.
In the early days of the takeover, the prospect that Shinsegae will not complete the eBay Korea takeover was dominant in retail prices, but recently, the atmosphere has changed and is considered one of the leading candidates for takeover.
In addition, Shinsegae is reinforcing the online sector by strengthening collaboration in the online shopping sector with Naver. In addition, it has recently decided to spur the expansion of full-filment and last mile services at a national level through linkage with Shinsegae’s national logistics network and Naver’s logistics partners through an exchange of KRW 250 billion worth of shares with Naver.
In cooperation with Naver, Vice Chairman Jeong Yong-jin played a large role.
Vice Chairman Chung Yong-jin visited Naver’s office building in January to discuss cooperation plans, and then established the’Shinsegae-Naver Alliance’ through an exchange of 250 billion won.
It seems that this move is underpinned by the recognition that the period when the market environment changes rapidly should not be missed.
As the center of distribution is rapidly shifting from offline to online, the group’s flagship discount store business alone has limitations, so it is necessary to find a new business area that can generate synergy with other affiliates.
In this year’s New Year’s speech, Vice Chairman Jeong Yong-jin emphasized, “This year, when the market competition environment is rapidly reorganized due to the Corona 19 crisis, can be an opportunity.”
In the business world, it is also expected that if Vice Chairman Chung Yong-jin successfully achieves the’Shinsegae-Naver-eBay Korea Alliance’, he will be able to become the overwhelming number 1 operator in the e-commerce industry.
It is a scenario that if Shinsegae Group creates synergy in the field of Naver and full-filment and combines the distribution center operated by eBay Korea, there may be a shift in perception in the e-commerce sector.
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