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News tech : Video n°3 → Tesco in South-Korea

This video is entitled Tesco in south Korea, it deals with Tesco, one of the biggest supermarket chain in the world, who involving itself in a unique market: south Korea. Indeed, Tesco even change his name to home plus, it permitted to adjust to the local market. Tesco grow to the number two on South Korea market, his main challenger was e-mart the number supermarket chain on the market. E-mart had more stores than Tesco, so Tesco must find a solution to became the new leader on the south Korean market.  But Tesco want to became the number on the local market without increasing the number of stores.

So he studies the market and find a great idea, indeed south Korean are the second hard working people in the world, so they don’t have lot of time to spend in shopping, it’s dreaded task for them. So Home plus had the idea to let the store come to the people by recreated virtual stores in public places like for example subway stations. The display of the items is exactly the same than in the real stores, but all items are virtual. Customer have to download the Home plus app’s, then to create an account, and to scan the QR codes under the products. Then they pay with their smartphones and the products are directly delivered to customer’s home.

This system’s permit to customers to have more time to relax after work and to transform the waiting time in shopping time. It’s big time saving. For Home plus the system’s permitted to increase the number of registered member’s by 76% and to increase the online sales by 130%. Moreover, this process permitted to home plus to reach his objective, indeed it became the number one on the south Korean online market and a very close second on the offline market.

In my opinion it’s good idea because it permits customers to save times, but if the customers shop online they will less customers in physical shop and many employees will be fire or sack.

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