🧠 Food for thought

Implications, context, and why it matters.

Shinsegae’s AI push builds on years of work

• The OpenAI partnership continues a multi-year plan to bring AI into Shinsegae Group’s retail and ecommerce work, rather than a sudden change in direction 1.
• In December 2022, Shinsegae teamed up with telecom giant KT to test AI-based logistics and use big data to improve store layouts at E-Mart and E-Mart24 2.
• Shinsegae’s online push follows a wider pattern in the sector, since Lotte On and Naver have launched conversational search plus beta AI shopping agents 3.
• The group also consulted AI specialists such as Andrew Ng, which fits a longer effort to compete in South Korea’s AI-powered smart retail stores market valued at USD 190 million by Ken Research 1, 4.

The deal moves competition from delivery to product finding

• The agreement changes the focus in Korean ecommerce, since fast delivery has become a standard feature for large online retailers 3.
• Attention shifts to tailored product finding across huge catalogs, especially after SSG.com, Shinsegae Group’s ecommerce platform, opened its marketplace to third-party sellers 5.
• An effective AI shopping agent could connect physical outlets such as E-Mart with online services, supporting an omnichannel experience (a seamless experience across online and offline shopping) 2.
• That raises the bar for Coupang, whose edge has come from Rocket Delivery and free-shipping perks, as rivals compete more on AI-led user experience rather than back-end execution 3.