Finalize the name of the baseball team…to maximize publicity
Stadium canteens, convenience facilities, etc.
Maximizing the customer base by utilizing the intersection with baseball fans
Shinsegae Group’s baseball team’SSG Landers’ has been officially launched. SSG.com, which has secured a thick baseball fandom, has also gained momentum in its growth. SSG.com is planning to leap into a new commerce platform that creates new economic added value outside of the existing business areas based on the synergy of the baseball team.
Shinsegae Group E-Mart completed the accounting process for the acquisition of SK Wyverns at the end of last week and confirmed the club name as SSG Landers. Shinsegae has put forward the online shopping platform SSG, rather than Shinsegae and E-Mart, the group’s representative brands. The strategy is to maximize the promotional effect of SSG.com, the group’s online corporation, through the baseball team.
This time, Dan’s name reflects the intention of Shinsegae Group Vice Chairman Jeong Yong-jin to grow SSG.com into a core distribution channel that surpasses department stores and E-Mart. Vice Chairman Jeong emphasized, “If department stores and E-Mart have been in charge of the growth of Shinsegae Group so far, SSG.com will lead the growth in the future,” while establishing a new online corporation in 2019.
However, the SSG.com market share is still only a single digit. Last year’s SSG.com transaction amounted to 3.900 trillion won, which is wider from leading companies such as Naver Shopping (27 trillion) and Coupang (22 trillion). When a new leap is needed, Vice Chairman Chung selected the baseball team as a driving force to strengthen SSG.com’s lack of awareness and customer base.
It is possible to create various business models by utilizing the intersection of baseball fans and commerce. Ballpark admission tickets, various food and beverages, and club souvenirs (goods) can be used as omni channels purchased at SSG.com. The young baseball fandom that flows into SSG.com increases traffic and positively affects sales of other category products. It is a structure in which customers emotionally assimilated by the combination of commerce and baseball contents bring out the lock-in effect.
In addition, new customer payment data can be secured if SSG.com’s simple payment service Suppay is used as a payment method for baseball shops and convenience facilities. Customer behavior and purchase data can be used for new brand product development and service planning through big data analysis.
Shinsegae Group’s expectation is that it is possible to develop a new type of business that did not exist before using such collaboration synergy. The idea is to develop it as a new commerce platform that creates new value by absorbing the added value of related industries beyond simple commerce. Park Eun-kyung, a researcher at Samsung Securities, said that the economic value of new commerce is twice that of the traditional distribution industry.
An official of Shinsegae Group said, “Baseball fans are familiar with the mobile environment and are in line with the leading customer base in the online market, such as playing games and community activities based on their passion. We decided that it would be possible to expand.”
Reporter Park Joonho [email protected]