Business challenge

Lotte wanted to effectively engage the millennials to provide a personalized, unique shopping experience for its customers.

Transformation

Lotte engaged IBM to build an Enterprise AI platform and a Watson-based solution for Lotte – Lotte Shopping Advisor (LOSA) – to provide a unique, differentiated and personalized shopping journey.

Business benefits

A new and sophisticated shopping experience

delivered to clients

Increased engagement

with the customers

Wider customer reach

by introduction of LOSA to social channels and smart speaker

Business challenge story

Transform shopping experience

Faced with challenges such as declining store sales and the convergence of physical and online shopping experiences, Lotte was looking for an innovative solution to help them:

  • Focus on Gen Zers who are the biggest users of the growing e-commerce market
  • Utilize the benefits of both online and offline shopping
  • Offer differentiated online experiences and instantaneous response to offline inquiries with active personalization

Transformation story

Building an intelligent shopping advisor

Introduced first in Lotte Department Stores, Lotte Shopping Advisor (LOSA) is a Watson-based solution that uses natural language processing and machine learning capabilities. When a customer requests a product, LOSA accesses Lotte's specialized recommendation engine, and based on the customer's purchase history and preferences, suggests the best product. Integrated with existing applications through an open API framework, the intelligent shopping advisor uses an interactive dialogue design model to offer

  • more personalized services to customers
  • consistent product information
  • expert advice tailored to individual customer needs

Lotte deployed the largest scale of AI shopping advisor globally; the LOSA service has now been adopted as the core AI platform across all LOTTE Group subsidiaries and department stores.

Results story

A unique, differentiated and personalized shopping journey

Launching LOSA, the online AI Shopping Advisor, has helped Lotte to secure the leading position in the market by delivering a new and sophisticated shopping experience.

LOSA is now a personalized lifestyle guide and chat buddy to Lotte’s growing audience. LOSA, is available whenever a customer wants to shop and is driving increased engagement with Lotte consumers. The use of product image recognition and voice-to-text translation services are also increasing progressively.

To reach a broader base of consumers, Lotte has also introduced its AI Shopping Advisor to Social Network Services including Kakao Talk and Smart Speaker KT Giga Genie.

business logo

About Lotte Department Store

Established in 1979, Lotte is one of the biggest retailers in South Korea. Home of Asia Pacific’s 3rd largest retail market, South Korea is at the forefront of the converging physical and online shopping experience. Operating 66 stores throughout the country, Lotte leads with a “Lifetime Value Creator” Vision, driving Digital ReinventionTM  in the retail industry.

Solution components

Take the next step

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