Shinsegae Department Store recently launched its own e-commerce platform 'Beyond Shinsegae', attracting attention to its background. Until now, Shinsegae Group has provided a comprehensive e-commerce service through SSG.com, covering not only department store and Emart products but also products sold by open market sellers.
Shinsegae Department Store explained that it enhanced the shopping experience by equipping the department store app, which previously only offered brand curation and some convenience features, with a payment system. Some industry insiders speculate that Shinsegae Co., ahead of a corporate separation, aims to secure its own e-commerce platform for the department store.
On the 12th, the retail industry reported that Shinsegae Co. renewed the Shinsegae Department Store official application (app·APP) on the 5th and launched the e-commerce platform Beyond Shinsegae. Beyond Shinsegae, which came in the form of an app-in-app within the existing Shinsegae Department Store app, is a shopping platform that gathers over 2,200 brands that support online delivery among stores located in Shinsegae Department Store nationwide.
The existing Shinsegae Department Store official app had focused on brand curation and customer convenience. It provides access to the shopping guidebook 'Shinsegae Magazine', which is published monthly, and offers various benefits such as parking and beverage coupons to customers.
However, the existing app did not include shopping functions, limiting users to viewing product photos and descriptions. To find pricing information or make a purchase, users had to separately open the SSG.com app and search for the product name.
To alleviate these inconveniences, Beyond Shinsegae has a system that allows for immediate payment within the Shinsegae app. The goal was to maximize the convenience of the shopping experience by moving beyond simple product information to enable quick purchases of the relevant products.
Currently, Beyond Shinsegae operates in a mirroring format, reflecting department store products available on SSG.com. This means that all products sold on Beyond Shinsegae are also being sold on SSG.com.
Additionally, the payment and delivery systems of Beyond Shinsegae are based on SSG.com. A Shinsegae Department Store official noted, "There is no difference between the department store products on SSG.com and the products listed on Beyond Shinsegae," adding, "Beyond Shinsegae uses the delivery and payment systems of SSG.com for stable service provision."
Shinsegae Department Store is conducting various events targeted at Beyond Shinsegae members, focusing on attracting customers to the platform. It runs a 'special sale area', offering new products at discounted prices every Monday and Thursday, and plans to schedule live commerce more than twice a week.
In addition, until the 24th, it will offer daily discount coupons giving up to 20,000 won off purchases of 30,000 won or more, and for purchases over 100,000 won, it will issue a coupon pack that can be used at Shinsegae Department Store offline stores nationwide in September. Moreover, it announced that 50% of the amount spent on Beyond Shinsegae will be recognized as next year's Shinsegae Department Store VIP performance until the end of this year.
Some industry insiders suggest that the launch of Beyond Shinsegae is a precursor to corporate separation. They argue that the department store sector, led by Chairman Jeong Yu-kyung of Shinsegae Co., has launched Beyond Shinsegae to establish its own e-commerce base separate from SSG.com.
Currently, SSG.com is the only company within the group jointly owned by Emart (45.6%) and Shinsegae (24.4%). It is essential to restructure the equity ownership to facilitate corporate separation. According to the Fair Trade Commission, listed companies must have cross-shareholdings below 3%, and unlisted companies must be below 10% to meet the criteria for separation.
Unlisted SSG.com must reduce the equity held by Emart or Shinsegae to below 10%. The industry believes that since Emart holds a higher share, there is a significant possibility that, through future adjustments, SSG.com may transition towards Emart.
However, Shinsegae Department Store officials are cautious about such interpretations. A Shinsegae Department Store official stated, "Currently, Beyond Shinsegae cannot be seen as a platform completely separate from SSG.com, as it has not established its own payment and delivery system, but has merely added another platform to expose department store products online."