Starbucks to boost business with e-commerce affiliates

A customer orders beverages and food on Starbucks Korea's mobile application in Seoul on Dec. 10, 2020. Korea Times file

By Kim Jae-heun

Starbucks Korea will strengthen its collaboration with e-commerce affiliates such as SSG.com and Gmarket Global to expand its online sales by utilizing live commerce, the largest coffee chain operating here said Monday. E-mart, the country's largest discount store chain operator, has a 67.5 percent stake in Starbucks Korea and also controls SSG.com and Gmarket Global.

Starbucks Korea has been seeking to diversify its online business with its popular special gifts and e-coupons for caffeine beverages.

In December, it held a live commerce show on Naver selling special Christmas tumblers, mugs, pouches and kettles. Live commerce is a new marketing strategy where a company sells products through a livestream on a digital platform, often in collaboration with social media influencers.

However, Starbucks Korea said it has no plans to open the live video shopping service on its own platform.

Membership on Starbucks' mobile application here in Korea has grown to some 8 million and the coffee house also recruited an expert on digital platforms recently, indicating to the market that the chain will start selling via a live commerce service on its online platform.

Starbucks Korea estimates there are 6 million monthly active users on its mobile application in the country now. Customers can deposit money on the platform and order their beverages in advance before picking them up at a store.

They can also collect stamps to trade for special gifts offered every summer and winter for a number of drinks they purchase. The so-called “silent order,” which was first started in Korea and has since spread throughout the country, will now be exported around the world.

Despite the huge potential for success with its mobile application, Starbucks Korea is still cautious to run online marketing independently.

“We don't have plan for hosting live commerce shows on Starbucks Korea's mobile application yet. But we are looking into various ways to work with Shinsegae online,” a Starbucks Korea official said.