Shinsegae seeks local retail paradigm shift with 'drama commerce'

Vice Chairman of Shinsegae Group Chung Yong-jin / Courtesy of Shinsegae Group

By Kim Jae-heun

Vice Chairman of Shinsegae Group Chung Yong-jin will introduce a new paradigm in retailing here by combining TV shows and online shopping; a concept he calls “drama commerce.”

This brings the shopping experience to another level where people can purchase products while watching dramatic content on their mobile phone.

TV commercials are nothing new but Shinsegae's drama commerce will deliver TV shows that place the featured products squarely before any kind of storyline.

“The idea is to break down the barrier between the shopping and television content markets. People don't have to feel like they have to buy something while watching our series. They can just enjoy the show and if they find something they like, then they can purchase it,” a Shinsegae official said. “Our rival is Netflix. What is important is how we are going to hold our customers online on our platform.”

In preparation of its conversion plan, Shinsegae has been acquiring and establishing content producing firms since the first half of this year. In March, the retail giant spent 26 billion won on creating a TV content creation firm called Mind Mark and then bought out its rival company Silkwood in June. Three months later, it purchased TV series distributor Top Management for 4.5 billion won.

Shinsegae said it plans to “offer unlimited content consumption and experience based on the smartphone platform to customers and occupy their daily time.”

Shinsegae Department Store and Shinsegae International are leading the group's new business initiative and they hope that this advertising model can help its retailing unit gain momentum to become a top player in the e-commerce sector.

Shinsegae is not only focused on improving its online retail business but also eyeing to make a strong start in the content creation business. It has not been revealed exactly what kind of TV drama it will create and when it will be released but when it does come out, the retail giant also hopes to launch the services in overseas markets.