Professional Documents
Culture Documents
MGT645
Electronic Commerce
Internet
shoppingmall
(LGeshop)
JAGUAR TEAM
Techno-MBA Park minshin, Hwang jungah
MIS-MBA Shim kyungsub
Contents
• Characteristics of eShop
• LG CATV Homeshopping
• LGeShop
1. Explosive growing
Market Size (forecasted in Aug. 2000)
(W
bilion) 20
Hansol CS
15
Samsung Mall
LGeShop
10
Interpark
Daum
5
야후
0
1 6 12 6
‘00 ‘01
Characteristics
Characteristics of
of eShop
eshop
3. Demographic
• Shopper: 2.9mil (1Q’01) 14% of total netizen
• #eShop over 500,000 visitors: 13 (Mar’01)
– Lotte (1.3mil), Interpark (1.1mil), Samsung (1.0mil),
Lgeshop (0.9mil)
• Shopper analysis
Housewife
16.8%
White Color
39.3%
Student 24.6%
Others
Blue Color 4.6%
14.7%
Characteristics of
Characteristics of eshop
eShop
4. Competitors
• HansolCSclub, Samsungmall, eHyundai, Lotte.com etc.
but there are not much differences each other
4. Competitors
• Samsungmall, HansolCSclub and eHyundai excel in delivery
• Lotte.com excels in system
www.samsunmall.co.kr www.csclub.com
Characteristics
Characteristics of
of eShop
eshop
5. Product Category
0 5 10 15 20 25 30 35 40 45 50
Electronics
books, stationery
others
ticket, travel
toys
flowers
other services
Classification of eshop
• Portal-based mall
– Yahoo shopping, Daum, Lycos, Naver
– Brokerage: Lower cost, higher efficiency
– Disadvantage in one-stop customer service
• Pure on-line eShop
- Samsungmall, interpark, buynjoy(KT), happy2buy(Sktel)
- Based on strong IT infrastructure
- Strong influence of parent company
• Off-line based eShop
- Lotte.com, e-hyundai, hansol CS club, LGeshop:
- Established based on off-line shopping mall
- Advantage of merchandising, delivery system
LG homeshopping
Market characteristics
• Purchased product
ranking TVshop eShop
1 Household goods Books
2 Electronics Software
3 Apparel CDs, video tapes
4 Fashion goods Computers
5 Foods Travel/services
LGeShop
• Opened in 1998 as a supportive function for TVshop
• Reformed and took its own way from may, 2000
• Dramatic increase in sales & # visitors
• LGeShop revenue trend
(W 8
billion) 7
6
5
4
3
2
1
0
00 J ul. Sep. Nov. 01 Mar. May
May J an.
Critical
Criticalsuccess factor
Success Factor
Profit
Customer loyalty
customer
price logistics
service
www.walmart.com www.jcpenny.com
Customer loyalty
Sales = buy rate * customer transaction (sales/buyer)
4Q 2000 1Q 2001
buyer 2.34 mil 2.91 mil
sales w489 bil w525 bil
E-Hyundai Hyundai DS
Sales/buyer 51,483 22,000
Mar ~ May, 2001(w)
Strategy of eShop
Profit
Customer loyalty
customer
price logistics
service
30
25
20
15
10
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B2C companies considers the price the most critical factor in competition.
Price Strategy of LGeShop
Profit
Customer loyalty
customer
price logistics
service
Payment
Customer Web
Payment Process
Interface Hosting Ordering
Back Office
Profit
Customer loyalty
customer
price logistics
service
External Data
Build Communicate
Marketing Manage with Customer
Customer D3
Database
Campaigns (Call-Centre )
DB
Communicate
with Customer
Evaluate
(Sales)
Legacy System Data Effectiveness Customers?
Responses
Management
Profit
Customer loyalty
customer
price logistics
service