Jung Yong-jin, who said, “Competition in distribution is a baseball field,” bought a baseball team

This year’s New Year’s Address by Jung Yong-jin, vice chairman of Shinsegae Group. Vice-Chairman Chung at the time said, “Let’s get out of the narrow thinking of looking only at the business to which we belong,” saying, “Please focus enthusiastically to meet the changed needs of customers.”

From the beginning of this year, Vice Chairman Jeong pulled out a’surprise card’ that said it took over the professional baseball team. Shinsegae Group announced on the 26th that “a memorandum of understanding (MOU) has been signed to acquire SK Telecom’s SK Wyverns baseball team.” It is said that Shinsegae E-Mart will take over 100% of SK Wyverns, owned by SK Telecom. The acquisition price is KRW 135.58 billion, including 1 million shares of SK Wyverns (100 billion won) and the land and buildings of the baseball practice range (35.28 billion won). Shinsegae also said, “We will maintain the base of the baseball team in Incheon and take over the hiring of all coaches, coaches, and front staff.” The main contract is signed on the 23rd of next month, and the name, emblem, and character of the club are confirmed and officially launched in March.

About the acquisition of SK Wyverns on the day, Shinsegae said, “We have been trying to acquire a professional baseball team for a few years to integrate online and offline and expand the online market.” “In particular, the intersection of existing customers and baseball fans and sharing experience is great. ” He also noted that in the era of 8 million professional baseball spectators, the thick baseball fan base coincided with the leading customer base in the online market.

After Vice Chairman Chung’s acquisition of the baseball team was first revealed, there were many reactions from retail prices as well as professional baseball fans as’why at this point’ and’unexpected’. This is because, as the consumption center of the distribution market has shifted from offline to online last year, there have been many predictions that Jung will focus on e-commerce (e-commerce) investments, starting with SSG (Sec).com.

In the distribution industry, Vice Chairman Jeong is looking for an online reinforcement strategy offline (baseball team). The main axis of the professional baseball crowd is in their 20s and 30s, and recently, the number of female spectators is increasing. Therefore, Shinsegae can secure MZ generations (generations born in the 1980s to early 2000s) stolen by e-commerce companies such as Coupang and Kakao as future loyal customers. I can.

Vice-Chairman Jeong’s efforts to capture the MZ generation can be seen from appearing on E-Mart YouTube since the end of last year. An official from E-Mart pointed out that “Vice Chairman Jung recently watched YouTube a lot of young customers, and I will appear first if it can contribute to E-Mart sales.” Indeed, after Vice Chairman Jung appeared, the number of E-Mart YouTube subscribers increased by more than 20,000.

Inside Shinsegae, it is said that the acquisition of a professional baseball team was largely influenced by the management philosophy of Vice Chairman Chung. The baseball field is the place where Vice Chairman Chung has been mentioned several times as an opponent of the distribution industry. He once said at the opening ceremony of’Starfield Hanam’ in 2016 that “the future competitors in the retail industry will be theme parks and baseball fields.” An executive from Shinsegae said, “This means that ballparks that attract potential customers on weekends are our competitors, too.” “In the spring, the number of Starfield customers will drop dramatically. In that sense, Vice Chairman Chung’s management philosophy is that the distribution business should be a space that occupies customers’ time, not just selling products.” Vice-Chairman Chung’s opinion is that the retail industry should aim to become a’lifestyle center’ so that shopping, leisure, eating out, and cultural life can be solved in one place.

In fact, within and outside the business world, there has been a steady stream of talks that from a year or two ago, Vice Chairman Jeong is working hard to acquire a professional baseball team. Another Shinsegae executive said, “With the end of Corona 19 this year, customers’ desire for consumption will begin to appear offline in the online market.” did.

Accordingly, in the distribution industry, Shinsegae is expected to target customers’ lifestyles, not just opening affiliate stores on the baseball field. On this day, Shinsegae said, “We will provide new experiences and services to customers who visit the baseball field so that they can become’playing baseball’ in’watching baseball’,” and “we will concentrate our capabilities to become a’Shinsegae fan’ outside the baseball field.” Revealed. E-Mart previously introduced sports marketing by creating’E-Mart Barbecue Zone’ in SK Wyverns’ home stadium, but in the future, it is expected to expand the service so that Shinsegae Group’s services can be enjoyed in one place.

With Shinsegae’s acquisition of the baseball team, the rivalry with Lotte is expected to strengthen further. This is because the confrontation between Shinsegae and Lotte expanded to the baseball game following distribution. The Lotte Group has a Lotte Giants club based in Busan. The confrontation between the two teams can raise public interest.

“Shinsegae’s acquisition of SK Wyverns is a smart choice,” said Seo Yong-gu, a professor at the Department of Business Administration at Sookmyung Women’s University. He said, “E-commerce, represented by Coupang last year with Corona 19, has grown rapidly. He said, “Shinsegae will focus on synergy effects such as selling Wyverns’ sign balls at E-Mart stores.” “Lotte is also expected to expand its sports marketing competition by increasing ties with Giants.” Added.

On the other hand, SK, who passed the professional baseball team to Shinsegae, said that the aspect of organizing non-core businesses within the group was strong. A business official said, “SK has been selling its non-core business a few years ago. In particular, I know that SK Telecom has had internal complaints about the money-eating Hama.”

Reporter Baek Minjeong [email protected]