Extraordinary Endeavors in Turbulent Times: Asian Innovation, Inclusion, and Impact during COVID-19

ASIA BUSINESS COUNCIL HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY 6 0 Lotte Group (South Korea) Extraordinary Endeavors in Turbulent Times “Open Innovation” in a Large Conglomerate But beyond the sheer reach of the app, one of the most interesting aspects of Lotte On is arguably its belief in “open innovation,” or the practice of sourcing ideas and solutions from internal as well as external organizations. While the app was launched less than a year ago, an eco-system is already emerging in which Lotte On collaborates with start-ups and innovators in South Korea’s digital economy. One of the key enablers of “open innovation” in Lotte On and the Lotte Group in general is Lotte Accelerator, the conglomerate’s venture capital arm. Like similar programs at other Korean chaebols , Lotte Accelerator leverages Lotte’s business infrastructure and partnerships with government organizations to support entrepreneurs and help their companies grow on a national and global scale. Since its establishment in 2015, Lotte Accelerator has invested in more than 50 startups in fintech, logistics, A.I., robotics, and other areas that could have synergies with the wider Lotte group. Lotte On is currently collaborating with a number of Lotte Accelerator’s portfolio companies, including online convenience store Nowpick, quick delivery company PLZ, beauty marketing start-up LYCL, seller management tool provider Seller Hub, live commerce solution Mobidoo, F&B co-working space Wecook, and daily discounted products company Last Order. From “One Hour Delivery” to Beauty Marketing Lotte On’s pilot “one hour delivery” service in the Jamsil neighborhood in Seoul is a good example of a win-win collaboration between the e-commerce app and Lotte Accelerator’s portfolio companies. Introduced over a summer of social distancing, the Jamsil service allows customers to order about 600 daily necessity products online, including home cooking products offered by Lotte Mart, and beauty and health products offered by LOHB’s. 11 As long as the product is purchased between 11:00 a.m. and 1:00 a.m., consumers are eligible for the service and can expect orders to be delivered within one hour. 12 Products are stored at warehouses operated by Nowpick, which is also Collaboration between Lotte On and Beauty Startup LYCL