Tesco Homeplus Virtual Subway Store – 스마트 가상 스토어
We are introducing this new series – Keeping up with the Koreans – where we will keep an eye on and share updates on upcoming lifestyle trends in Korea. In this series we will talk about – Tesco Homeplus Virtual Subway Store – 스마트 가상 스토어 (Smart Gasang Store) - installed at Seolleung Subway Station in Seoul.
The Problem
South Koreans have a busy lifestyle, where they spend majority of their time either at their workplace or commuting for work. So activities like your regular grocery shopping or super market shopping becomes a chore and very time consuming. Taking out time for these activities would mean giving less time to your family. So how can a busy mom optimize her time, where she can accommodate her routine grocery shopping with her daily work commute thus giving her more time to spend with her family.
Homeplus – Virtual Subway Store – Korea
Shopper scanning products
Korean Girl shopping at Virtual Store
Koreans Shopping through Virtual Store at Seollung Subway
The Solution
British giant Tesco came up with this innovative solution – HomePlus Virtual Store – where instead of people walking into a store, the store would come to the people. They created billboards on the Seolleung subway station in Seoul that feature a range of products that customers can then select and scan using QR codes with their smart phones, only to have the selected groceries delivered later to their doorstep. The displays are set up just like aisles in any grocery store, so while you’re waiting for the train, you can get that pesky chore out of the way.
Homeplus Virtual Store installations at Seollung Subway Station in Seoul
Seven pillars and six platform screen doors have been plastered with images of life-size store shelves filled with goods such as milk, egg, pasta sauce, gochujang (korean chilli paste), tissues, digital camera, fresh fruits, juices and various other items with each carrying a small barcode.
Shoppers just need to download a related application on their smartphone and make purchases by scanning the QR code of the product with their phone and then making payments through their app. The product then gets delivered to their homes as soon as they are back from work.
HomePlus Virtual Subway Store
The Outcome
From the time the virtual grocery store was launched – August 2011 – it has been a hit among more 10,287 customers, with Home Plus reporting a 130 percent increase in online sales. The results of the initiative are impressive also in terms of numbers: online sales for the last year increased by 130 percent, with the number of registered members rising by 76 percent. According to Homeplus, its mobile application and Web page have had more than 65,000 users since their launch in April and post an average of 30 million won ($28,000) in sales per week.
The Infrastructure Advantage
- Homeplus explained it chose Seolleung station for its trial store because over 200,000 commuters use it every day.
- South Korea has 15.4 million smartphone users, more than 30 percent of the population. A state telecommunication official has estimated this will rise to 70 to 80 percent within three to four years.
- Most Seoul subway stations support wireless networks through which smartphone users can access the Internet for free.
Shopping clothes at Virtual Subway Store
The Challenges
- People may have to spend around 5 – 10 minutes just to complete an order to buy five items. So are people willing to spend that much time in the middle of a busy subway station.
- The pricing has to be good for the idea to catch on,
- Currently, Homeplus has targeted Seollung station for this project, whereby it covers almost the entire station with product billboards. It might not be feasible to cover other major metro station in Seoul with just Homeplus product billboards in the long run.
The Agency
Cheil Worldwide, Seoul, Korea.
The campaign won Grand Prix in Media, and Gold Lions for Direct and Outdoor.
The Video
The Future
This model of business looks completely scalable to me. Meaning if the shopper develops the habit of scanning the products QR code for purchasing the product through his smart phone, then he can scan it anywhere, be it magazine, news paper, tabloid, posters, adverts etc. wherever he can find the QR code for the product. So very soon the virtual shop would be replicated on various mediums which is more accessible to the customer – like magazine, newspaper or the actual product itself.
So will this model be sustainable in the long run? Or is it just a new fad that may fade in a few months? Or was this a strategy to acquire new customers for Homeplus over its competitor Emart? What do you think?
Source
- Gouri Phadke for giving me the lead through her facebook post. Thanks Gouri.
- http://koreajoongangdaily.joinsmsn.com/news/article/article.aspx?aid=2940729
- http://www.digitaltrends.com/mobile/south-korean-supermarket-chain-opens-virtual-grocery-stores-in-subways/
- http://www.amusingplanet.com/2011/09/world-first-virtual-store-opens-in.html
Richard
I loved this idea and then was frustrated that I never saw it around town. When they first advertised about the advertisements it turns out they were only up one night after the subway was closed – which still qualified it for an award that I believe they won.
The flip side is since then they actually have installed this in real stations and have left it up. I forgot where I saw it but I’m glad they actually have this up. It’s a great idea.
TheKoreaGuide
It is indeed. Going forward I wont be surprised if they install touch screen kiosks on stations where commuters can view a range of products virtually n then make the purchase as opposed to the static ones they have right now..
Fabiana
Dear Sirs,
We´re organizing an Incentive trip to Seoul from 08th to 12th of November 2012 for the biggest Supermarket owners in Brazil selling Kraft products.
I am writing to kindly request your assistance in organizing an accompanied visit to one of your eHome Plus Subway Station store in Seoul. The purpose of the visit and meeting is to learn about marketing, logistics applied in your company, to have a global view of the chain and to know how your company uses the technology as a benefit for the supermarket and consumers.
I would be grateful if you could assist on the organization of these activities on our behalf as it is the most important aspect of the programme.
Thank you
55 11 35060604
55 11 9 82984067
SNUstudent2013
I would rather go to the ‘real’ super market and shop. To some customers (including me) shopping may not be a chore but a relaxing activity. It also allows you to see the product and compare it with that of other brands, in terms of price and quality. Another disadvantage of the virtual supermarket is that it will not allow you to see the ingredients, and nutrition label of the product, so people who are allergic to certain ingredients may find it harder to shop if they don’t research about the product beforehand.
However, I think that this is a great idea as it will attract many commuters in the subway. The Seoul Metropolitan subway is one of the most used subways in the world, and by making a virtual supermarket (which is both convenient and intriguing) Home plus will have access to a LARGE number of customers per day. Plus, for people buying a lot of products the delivery option is very attractive. I would definitely want to try this when I pass Seollung station next time.