{"id":5484,"date":"2011-07-30T11:42:12","date_gmt":"2011-07-30T11:42:12","guid":{"rendered":"http:\/\/www.mobiadnews.com\/?p=5484"},"modified":"2011-08-21T19:05:13","modified_gmt":"2011-08-21T19:05:13","slug":"virtual-stores-drive-tesco-growth-in-koreaturning-waiting-time-into-shopping-time","status":"publish","type":"post","link":"http:\/\/www.mobiadnews.com\/?p=5484","title":{"rendered":"Virtual Stores
Drive Tesco Growth In Korea
Turning waiting time into shopping time<\/span>"},"content":{"rendered":"

homeplus-man-shopping.jpgEveryone knows that building new retail stores is expensive and takes a lot of time. But what if building a new store could be as easy as printing a poster?<\/p>\n

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Global food chain Tesco<\/strong> was finding it hard to compete in the Korean market, until they decided to do just that.<\/p>\n

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Check out this very cool use of mobile!
<\/p>\n

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The Situation<\/h3>\n

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Koreans are one of the hardest working populations in the world, and as a consequence they tend to prefer to do their shopping in stores near their home. This makes it is quicker and more convenient, and better fits their busy lifestyle.<\/p>\n

Tesco – operating in Korea under the local brand Homeplus<\/strong> – had fewer physical store locations than E-Mart<\/strong>, the #1 chain in the market. And this was putting Tesco at a competitive disadvantage.<\/p>\n

Rather than embarking on an expensive, time-consuming program to construct lots of additional retail shops, Tesco teamed up with advertising agency Cheil Worldwide<\/a> to develop the Virtual Store<\/strong> concept, and turned Seoul’s subway stations into Homeplus grocery stores.<\/p>\n

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The Campaign<\/h3>\n

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Basically, Cheil printed large posters that looked just like the shelves in a normal Homeplus store, complete with all the various products that customers would expect to find in a grocery store. These were then mounted on the walls in subway stations to create a virtual grocery store in the subway. <\/p>\n

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homeplus-aisles.jpg
<\/p>\n

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The result was actually a quite realistic grocery store, the only difference was that while the customers were waiting for their subway trains, they could their smartphones to shop! <\/p>\n

Here’s how it worked:<\/p>\n

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homeplus-shopping_how-it-works.jpg
<\/p>\n

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The Results<\/h3>\n

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Tesco Homeplus believes that the campaign was very successful, with over 10,000 people doing their shopping in the virtual store. <\/p>\n

In addition, Tesco Homeplus saw their online sales rise over 130% as a result of the campaign, and they are now the #1 online market in Korea.<\/p>\n

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Why it works: Tapping into consumer habits<\/h3>\n

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The interesting thing about this campaign is that it applies new technology to deliver a new service, but it is all based on a very established consumer habit. <\/p>\n

People have been doing their shopping by browsing products on store shelves for many many years, and Tesco simply used new mobile technology to move that same experience into a more convenient location, thus enabling people to turn their waiting time into shopping time.<\/p>\n

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Here is a video of the service in action.<\/p>\n

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Everyone knows that building new retail stores is expensive and takes a lot of time. But what if building a new store could be as easy as printing a poster? Global food chain Tesco was finding it hard to compete in the Korean market, until they decided to do just that. Check out this very […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,24,23,29],"tags":[],"_links":{"self":[{"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=\/wp\/v2\/posts\/5484"}],"collection":[{"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5484"}],"version-history":[{"count":0,"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=\/wp\/v2\/posts\/5484\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5484"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}